Michigan Nursing Home Administrator (NHA) Practice Exam

The state portion of UIA can change and is up to what percentage of taxable payroll?

1. 5.0%

2. 6.0%

3. 7.6%

4. 8.0%

The correct answer is: 7.6%

The correct answer reflects the maximum rate the state can assess for unemployment insurance benefits on taxable payroll. In Michigan, the unemployment insurance (UI) assessment rate is determined by the state and is based on various factors, including the state’s unemployment rate and the overall financial stability of the unemployment insurance trust fund. In Michigan, the maximum UI tax rate can reach up to 7.6% on taxable payroll. This percentage is significant as it affects how much employers must pay towards unemployment insurance for their employees, impacting the financial management of businesses. While other percentages may represent different tiers or specific situations within the unemployment insurance system, 7.6% is acknowledged as the upper limit of the state-imposed unemployment insurance rate according to the state's regulations for taxable payroll. Employers must stay informed about these rates since they can alter the costs associated with payroll, ultimately influencing budgetary decisions and overall labor costs.