Michigan Nursing Home Administrator (NHA) Practice Exam

What is the percentage base for new employers without a contribution history?

1. 1.5%

2. 2.7%

3. 3.0%

4. 5.0%

The correct answer is: 2.7%

The correct percentage base for new employers without a contribution history is 2.7%. This percentage is established to ensure that new employers contribute a baseline amount to the unemployment insurance system, reflecting the ongoing costs of supporting unemployed workers within the state. For new employers, a default contribution rate is implemented to create an equitable entry point into the unemployment insurance system. By setting this rate at 2.7%, it allows the system to maintain its funding levels while balancing the need to support employers who may not yet have a track record of employee contributions. Understanding this rate is essential for new businesses, as it can affect budgeting and financial planning. New employers do not yet have a contribution history to rely on, making this baseline rate critical for their initial engagement in the unemployment insurance program.