The Michigan Department of Labor & Economic Opportunity (Department) announced in December 2024 that the 2025 state unemployment insurance (SUI) wage base is lowered from $9,500 to $9,000 for qualifying employers because the SUI Trust Fund balance exceeded the statutory trigger of exceeding $2.5 billion on June 30, 2024. (See SB 500 for 2015.)

The reduced SUI wage base of $9,000 applies to non-delinquent employers that have no missing or estimated SUI tax reports and an unpaid SUI tax balance of less than $25, including penalty and interest.

On February 3, 2025, the Department sent Form 6354, Notice of $9,500 Taxable Wage Base, to over 40,000 delinquent employers giving them 14 days to resolve their delinquency or be subject to the higher SUI wage base of $9,500 for calendar year 2025. Employers that had timely cleared their delinquency and became eligible for the lower SUI wage base of $9,000 received Form 6352, Notice of Taxable Wage Base. (Michigan Employer Advisor, February 2025.)

Ernst & Young LLP insights

Before submitting the 2025 first-quarter Michigan SUI return and contributions, Michigan employers should verify the SUI wage base that applies ($9,000 or $9,500). If they received notice of being subject to the higher wage base, they should immediately notify their third-party payroll service provider.