Bill Text: MI HB5888 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Employment security: employers; quarterly reports of employees’ wages; require to include tips. Amends sec. 13 of 1936 (Ex Sess) PA 1 (MCL 421.13).
Spectrum: Partisan Bill (Democrat 37-0)
Status: (Introduced - Dead) 2020-06-24 - Bill Electronically Reproduced 06/23/2020 [HB5888 Detail]
Download: Michigan-2019-HB5888-Introduced.html
HOUSE BILL NO. 5888
June 23, 2020, Introduced by Reps. Elder, Sabo,
Guerra, Rabhi, Pohutsky, Gay-Dagnogo, Yancey, Kennedy, Lasinski, Brixie,
Hood, Hertel, Cherry, Hoadley, Ellison, Manoogian, LaGrand, Stone, Hammoud,
Koleszar, Sneller, Hope, Haadsma, Wittenberg, Tyrone Carter, Bolden, Garza,
Chirkun, Kuppa, Pagan, Warren, Cambensy, Shannon, Brenda Carter, Clemente,
Jones and Anthony and referred to the Committee on Government Operations.
A bill to amend 1936 (Ex Sess) PA 1,
entitled
"Michigan employment security act,"
by amending section 13 (MCL 421.13), as amended by 2012 PA 493.
the people of the state of michigan enact:
Sec. 13. (1) Each employer subject to this act shall
pay to the unemployment agency a tax in the form of payments in lieu of
contributions where the employer is liable for those payments, or tax
contributions equal to a standard rate of 2.7% for calendar years before 1985
and 5.4% for calendar year 1985 and thereafter, subject to an adjustment in
rate of contributions as provided in section 19. The contributions shall become
due and be paid to the unemployment agency, for the unemployment compensation
fund, by each employer semiannually or for shorter periods of not less than 28
days, as the unemployment agency may by rule prescribe. Contributions due and
payable from an employer that is liable under this act solely on the basis of
the payment of wages for domestic service may be paid annually on the date
specified by the unemployment agency. An obligation assessment payment made
pursuant to section 10a or a contribution payment made pursuant to this section
shall be credited first to interest on the obligation assessment and then to
the obligation assessment, with those payments applied to amounts unpaid and
owing in the oldest calendar quarter and progressing each quarter to the most
recent quarter. Any remainder shall be credited first to penalties on contributions,
then to interest on contributions, and then to contribution principal, with
those payments applied to amounts unpaid and owing in the oldest calendar
quarter and progressing each quarter to the most recent quarter. An employer's
contribution shall not be deducted directly or indirectly, in whole or in part,
from wages of individuals in his or her employ. A contribution payment amount
that is not an even dollar amount shall be credited to the account of the
employer in an amount equal to the next lower dollar amount if under 50 cents
and in an amount equal to the next higher dollar amount if 50 cents or more.
The unemployment agency may prescribe by rule the details of the computation
and payment of contributions. Every employing unit shall file with the
unemployment agency periodic reports on forms and at a time the unemployment
agency prescribes to disclose liability for contributions under this act. Each
employing unit shall keep records, including wage and employment records, and
shall, within prescribed time limits, submit or provide reports, including wage
and employment reports, to the unemployment agency or to the employing unit's
employees or former employees as the unemployment agency prescribes by rule.
(2) Beginning with the
first quarter of 1986, each employer shall file a quarterly wage report with
the unemployment agency, on forms and at a time as the unemployment agency
prescribes, which shall include that includes for each of the employer's
employees the employee's name, social security Social Security number, gross wages paid
during each the quarter , including all reported or declared tips, and
the name, address, and federal and state employer identification number of the
individual's employer. If the unemployment agency discovers an error in a
report filed timely, the unemployment agency shall provide written notification
to the employer of the error. If the employer provides corrected information
within 14 days of the notification, the administrative fine provided in section
54 for a late, incomplete, or erroneous report shall not apply. An employer
having more than 25 employees on January 1, 2013 shall file quarterly reports
beginning with the report for the first quarter of 2013 by an electronic method
approved by the unemployment agency. An employer having more than 5 but fewer
than 26 employees on January 1, 2013 shall file quarterly reports beginning
with the report for the first quarter of 2014 by an electronic method approved
by the unemployment agency. An employer having 5 or fewer employees on January
1, 2013 shall file quarterly reports beginning with the report for the first
quarter of 2015 by an electronic method approved by the unemployment agency,
except that the director of the unemployment agency, upon application by the
employer, may grant additional time for the employer to comply with the
electronic filing method if the director concludes that satisfying the
requirement of electronic filing will cause economic hardship for the employer.
The employer shall provide, and the director shall consider, information about
the employer's anticipated cost expenditure for preparing for electronic filing
and about the employer's annual income. An employer that complies with the
reporting requirements of this subsection by filing electronically a quarterly
wage report using a method approved by the unemployment agency is not required
to file periodically to disclose contributions under this act.
(3) The unemployment agency shall allow a contributing employer that employed 25 or fewer individuals during the pay period that includes January 12, 2012, or during the corresponding pay period in each succeeding calendar year, and that incurred 50% or more of the employer's total previous year's contribution obligation in the first quarter of that year to discharge the liability for contributions due in the next succeeding year through quarterly payments that distribute the payment of the first quarter's obligation equally over the 4 quarters in that year. To avoid interest and penalties otherwise applicable to those payments, an employer meeting the requirements of this subsection shall notify the unemployment agency of the election to make apportioned payments with the first quarter's payment and timely file each succeeding quarterly payment in the amounts prescribed in section 15a. This subsection applies to contributions beginning in the 2013 tax year.