Now You’re a Brewer AND an Employer

You followed your dream of opening a craft brewery and hired a great staff to help deliver the perfect brew to the public. But now that you’re a brewer AND an employer you need to stay up-to-date on things like unemployment taxes, in addition to the latest and greatest brewing techniques.

Below is a summary of a few key updates regarding the Michigan Unemployment Tax:

  1. Beginning in 2012, the taxable wage base is now $9500.

  2. When computing the unemployment tax, employers used to be taxed at 2.7% for the first two years. After that, they were taxed at 2.7% plus the experience rating, and it took 5 years to be considered a fully experienced employer. Beginning in 2012, it will take a new employer 4 years to be considered experienced, and in 2013, it will take a new employer 3 years. Because of this change, the minimum tax rate could potentially be .06%, for some employers, after only 3 years.

  3. Beginning in 2013, employers with more than 25 employees must file Form UIA 1028, Employer’s Quarterly Wage/Tax Report, on-line.

  4. Beginning in 2014, employers with more than 5 employees but fewer than 26 must file Form UIA 1028 on-line.

  5. Beginning in 2015, all employers must file Form UIA 1028 on-line.

  6. The penalty for filing Form UIA 1028 late, or for filing an erroneous report, is increased from $25 to $50 if the return is filed within 30 days of the due date. After that, the penalty is increased to $250 per quarter that the report remains late. If the UIA notifies an employer that there’s an error on their report and it’s corrected within 14 days, no penalty will apply.

  7. Seasonal designation can be obtained by any employer that employs workers for regularly recurring 26-week periods, or less, in any 52 week period. This means that as long as the employer gives the worker reasonable assurance of returning, the workers will not be paid unemployment benefits between seasons. It no longer matters whether the employer’s industry is also seasonal.

If you have any questions, contact the Brewers Professional Alliance.

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