Virtually all employers are subject to unemployment insurance taxes under the Michigan Employment Security Act (MI Comp. Laws Sec. 421.1 et seq.). Coverage extends to:
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• Anyone who had one or more persons employed in covered service during 20 different weeks in either the current or preceding calendar year;
• Anyone who is covered by the Federal Unemployment Tax Act (FUTA);
• Agricultural employers that paid wages of $20,000 or more in a calendar quarter to 10 or more workers, or that employed agricultural workers for some portion of a day in each of 20 different weeks;
• Employers of domestic workers that paid wages of $1,000 or more in any quarter;
• Employers that acquired the trade, organization, or business of a covered employer;
• Employers that elect to be covered; and
• The state and its political subdivisions (MI Comp. Laws Sec. 421.41).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students under 22 working for work-study programs;
• Spouses of students working for schools;
• Real estate and insurance salespersons;
• Sales representatives of investment companies who work principally or wholly for commissions;
• Certain newspaper distributors (e.g., minors); and
• Part-time employees working for nonprofit entities (MI Comp. Laws Sec. 421.43).
