State of Michigan Bond Issuance Restores Solvency to UI Trust Fund
The Michigan Department of Treasury recently issued a press release stating that Michigan has repaid the $3.2 billion Unemployment Trust Fund balance due to the U. S. Treasury. This is a win-win for the state and its employer communities.
Because this transaction was completed before the end of 2011, the state and its business community will benefit in several ways, including:
- FUTA tax credits restored (rate reduced from 1.8% to 0.6%, effective January 1, 2012)
- Significant interest savings for the state of Michigan and their taxpayers—estimated between $150-$200 million
- Elimination of 2011 solvency tax on Michigan employers
As more information is released by the Michigan Department of Treasury, we will keep you informed in our monthly Compliance Newsletter. If you have any questions, please call your Payroll Team at 888.679.8865.
To learn more about how Oasis assists employers in all 50 states, give us a call to schedule your Free Consultation, 866.709.9401.