You may be eligible for the Michigan Unemployment
Tax Credit!
The State of Michigan may give you a credit for 50% of the additional FUTA tax that you paid
the federal government for 2009, 2010 and 2011 if you meet certain criteria. You will find the additional
amount you paid for those years on your Forms 940, Schedule A, line 2d.
You qualify for the credit if you meet the following criteria 1) you are an employer with a
positive reserve in your state unemployment account, 2) you have been paying unemployment tax to the
State of Michigan for at least five years, and 3) you have paid 100% of your FUTA tax by 12/31/10 for
2009 and 12/31/11 for 2010 and by 12/31/12 for 2011.
How do you know if you have a positive reserve in your state unemployment account? Your
reserve balance is listed on your tax rate determination letter that you receive from the state
unemployment office.
How do you apply for the credit? You will have to complete Form UIA 1110 for each of the
years that you qualify. You will need information from your 2009, 2010 and 2011 Form 940, Schedule
A, and from your tax rate determination letters for 2009,2010 and 2011 in order to complete the forms.
Form UIA 1110 is available on the State of Michigan’s website. The links to the forms are listed below:
2009 Form UIA 1110: http://www.michigan.gov/documents/uia/1110-Fillable_321112_7.pdf
2010 Form UIA 1110: http://www.michigan.gov/documents/uia/1110-2011_344850_7.pdf
2011 Form UIA 1110: http://www.michigan.gov/documents/uia/1110-2012CreditFill_378016_7.pdf
How will the credit be applied to your account? You will not receive a check for the amount
of the credit, however, your unemployment account will be credited. Your credit will appear on your
Form UIA 1120 Employer’s Quarterly Tax Report that you receive from the State of Michigan.
Please contact us with any questions that you have regarding the credit, or if you need any help
with Form UIA 1110.
Provided as a service of Dolinka VanNoord & Company, PLLP. We have reviewed the information contained herein
and believe it to be correct. However, we cannot accept responsibility for its content or application.
Please consult with us before acting on any tax advice.Phone 616.459.2233 Fax 616.459.5469