Regulations Affecting Your Business
Unemployment Taxable Wage Base unchanged for 2024
Employers will not see a change next year in the taxable wage base (the amount of an employee’s wages taxed by UIA). Contributing employers currently pay taxes on the first $9,500 of earnings.
As of June 30, the trust fund balance was $2.2 billion. The taxable wage base is only reduced when the balance in the Michigan Unemployment Compensation Fund equals or exceeds $2.5 billion and the UIA projects the balance will remain at or above that level for the remainder of the calendar quarter and for the entire succeeding quarter. If the trust fund threshold met those parameters, then the taxable wage base would have been reduced to $9,000. Since it’s below $2.5 billion, employers will not see a reduction in the taxable wage base for 2024.
The taxable wage base is mainly for contributing employers since reimbursing employers do not pay quarterly taxes but rather report only the wages for their employees. Employers would qualify for future taxable wage base reduction if they are not delinquent in paying employment contributions, penalties, or interest. An employer is considered delinquent if they owe $25 or more to their account.
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Michigan’s ORC task force is working
The first-in-the-nation ‘FORCE’ Team and Organized Retail Crime Unit – established by Michigan Attorney General Dana Nessel in January – announced new convictions in mid-September in a KitchenAid mixer theft scheme targeting Detroit-area Target stores. The FORCE Team and ORC Unit works with retail investigators to target criminal organizations that steal products from retailers to repackage and sell for a profit. Two assistant attorneys general serve the unit full-time, working with special agents within the Department of Attorney General and Michigan State Police detectives to investigate and prosecute these crimes. This is a first-in-the-nation unit, unique in the 50 states as being the first such unit with embedded, dedicated staff from the Department of Attorney General.
The ‘FORCE’ Team is dedicated to working collaboratively with retailers and local law enforcement agencies to combat ORC. Local law enforcement agencies or retailers with evidence of organized retail fraud are encouraged to email the ‘FORCE’ Team at MSP-FORCE@michigan.gov.
Pay transparency becoming a hiring trend
Half of U.S. job postings listed on Indeed in August included at least some employer-provided salary information, which is the highest percentage recorded on the site so far, according to a Sept. 14 report from Indeed’s Hiring Lab. Overall, the share of postings with pay transparency information has nearly tripled from 18% in February 2020 to 50% in August 2023, and it’s likely to grow in coming months, according to the report.
MI WIC to inspect formula invoices for safe products
Michigan WIC has set expectations for WIC retailers to verify that infant formula has only been purchased from accepted suppliers. Michigan WIC may ask to review infant formula invoices during routine monitoring visits and/or on-site inventory audits. These concerns stem from reports of infant formula being stolen and resold, often as a result of Organized Retail Crime (ORC) activity. Stolen products may be unsafe if the product or label has been tampered with, is expired, and/or has been stored improperly.
WIC Vendors must adhere to infant formula purchase requirements. Per MI-WIC Vendor Policy 2.02, Item 1, a, vii., as a requirement of WIC program participation, all Vendors must “Purchase WIC-approved foods, formulas, and medical foods exclusively from WIC-accepted suppliers.”
WIC-accepted suppliers are defined as:
- A Michigan-based wholesaler, distributor, or retailer that is licensed to distribute food by the Michigan Department of Agriculture and Rural Development (MDARD);
- A non-Michigan-based wholesaler, distributor, or retailer that is licensed to distribute food by the MDARD equivalent in the jurisdiction in which it is located;
- A Michigan-based pharmacy that is licensed by the Michigan Department of Licensing and Regulatory Affairs (LARA);
- A non-Michigan-based pharmacy that is licensed by the LARA equivalent in the jurisdiction in which it is located; or
- A manufacturer that is registered with the Food and Drug Administration (FDA).
A regularly updated list of MDARD-licensed sources can be found on the WIC Vendor website at Michigan.gov/WICVendor. Any additional questions may be directed to the WIC Vendor Relations Unit at 517.335.8937 or MDHHS-WICVendor@michigan.gov.
Did you fill out our paid leave survey?
The Michigan legislature plans to quickly take up Gov. Whitmer’s call for a state-run paid leave program. They will consider legislation creating an unemployment-style, bureaucrat-run system to offer up to 15-weeks paid leave, funded likely by payroll contributions, that covers every single employee at every business, regardless of business size or number of hours worked.
The policy has good intentions for a parent to bond with a newborn or adopted child, to treat the employee’s or a relative’s severe injury or illness, preventative care/doctors visits, a military member’s deployments or healthcare, or meetings with a child’s school related to their health. Unfortunately, the legislature plans to create a one-size-fits-all program with no flexibility for what a business and its employees may truly need or want.
We need to understand what small businesses are offering in terms of paid leave or time off today and what your concerns and actions would be if this type of proposal passes. Please take a few minutes to share what you currently offer and how you’d be impacted by this proposal.
Deadlines and Reminders
November – December 2023:
- Oct. 1-Dec. 14 – Michigan WIC Northern Region Vendor Contract Renewal (rolling 3-year renewal period by region)
- Nov. 1-Jan. 15 – Open enrollment for individual health care coverage
- Nov. 30 – CBD/hemp processor-handler license renewal deadline. These licenses are required for retailers who wish to sell CBD products. The annual license applies to consumable and non-consumable hemp and hemp products.
Monthly Reminders:
- Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.
- Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.
- Retailer’s Prepaid Wireless 911 Surcharge – within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.
Quarterly Reminders:
- Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15)
- Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20)
- Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20)
- Unemployment Employer’s Quarterly Wage/Tax Reports (April 25, July 25, Oct. 25, Jan. 25)
