Unemployment Insurance

Michigan has a highly experience-rated unemployment insurance (UI) system. This means that firms with few layoffs pay very low UI costs, while those that are highly cyclical and have large layoffs pay significantly higher rates.

Michigan’s current maximum benefit amount is $362. The benefit duration is a maximum of 26 weeks and a minimum of 14 weeks.

The Federal government levies a 0.8% federal unemployment insurance tax (FUTA) on nearly all companies.

New businesses begin under the new employer tax structure during the first four years of operations in Michigan. The new employer rate is 2.7% the first two years. Generally, for companies with no layoffs, the rate can drop to 1.8% and 1.0% in the 3rd and 4th years, respectively. The minimum rate can drop as low as 0.1 percent for companies with no layoffs after five years.

(If you are unemployed and seeking assistance, please call 866-500-0017.)