April 23, 2025
Changes to Michigan’s unemployment insurance law for those who file for jobless benefits increase the maximum number of weeks of eligibility to 26, the maximum weekly benefit amount to $446, and the dependent allowance to $12.66.
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The law went into effect on April 2, 2025, and it also specifies new maximum weekly benefit amounts on January 1 of 2026 and 2027. Beginning in 2028, any change in benefit amounts will be tied to the Consumer Price Index calculated by the federal Bureau of Labor Statistics. (Find a helpful FAQ at Michigan.gov/UIA.)
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Employers should also know that the updates to the Michigan Employment Security (MES) Act will have a future impact on them, as well.
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With tax rates set for 2025, employers won’t see changes this year. However, when they receive their 2026 tax rates in December the maximum chargeable benefits component (CBC) used to calculate contribution rates may be increased.
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Contributing employers charged the maximum tax rate of 10.3 percent in 2025 could see an estimated increase of 1.9 percent in 2026 taxes.
Reimbursing employers, which make up about 2.2 percent of employers registered with UIA, would pay a higher amount in billings next year, reflecting increased weekly benefits paid on unemployment claims.
Michigan’s unemployment tax system is one of the most highly “experience rated” systems in the country. This generally means an employer’s tax is more closely based on the actual benefit charges to its account, and the size of payroll. To brush up on how benefits paid to employers could affect that experience rating, go to Michigan.gov/UIA for detailed explanations of the components that go into figure an employer’s tax rate.
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The update to unemployment insurance law isn’t the only change employers are experiencing with unemployment. In December, the Michigan Unemployment Insurance Agency (UIA) announced a lower taxable wage base (TWB), which is the amount of employee wages that are taxed to support the unemployment insurance program. The TWB was reduced to $9,000, from $9,500, where it had been since 2021.
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Source: Michigan.gov.
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Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.
Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.
It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.
NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.
Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.
The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.
In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.
We have had a great experience with FNP. During Covid, when there was the chance that reimbursable nonprofits would have to pay 50% of the unemployment costs, FNP went to bat for us. We would receive weekly information on the Unemployment claim and how they were working to reduce the costs to reimbursable nonprofits. They have a great service also working with [our claims administrator] to make sure all the paperwork is completed correctly for any unemployment claim.