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  • Michigan employers to face 1,000% tax increase?

    02/20/2010 7:22:52 AM PST · by 5etester · 62 replies · 1,431+ views
    The Observer ^ | 2-20-2010 | Jeff McKinley
    At a time when Michigan employers can least afford it,they are going to be paying more in unemployment taxes.This scenario looks to be essentially an annual increase as far as the eye can see.Our unemployment trust fund is insolvent and constantly borrowing more.Let's take a look at the program. Each employer is charged with a 6.2% payroll tax to fund the unemployment insurance program.However,if that employer is current on any federal loans,they receive a tax credit,otherwise known as FUTA,of 5.4%.Taxes are paid on the first $7,000 of income in Michigan.So a $434 tax is reduced by $378 leaving the employer...