As if things weren't bad enough for employers in Michigan, they're now looking at a new tax increase.
Employers are required to pay Federal Unemployment Tax. The tax is a back up to state unemployment funds and is used when the feds extend unemployment benefits to workers.
If you pay your state tax on time, your FUTA will run .8% on the first $7,000 in wages. Because the state of Michigan is anticipating a default against a loan from the fund, employer's will now have an increased rate of 1.1%.
So congratulation Michigan for making red states redder and making your employers all the more noncompetitive.