Abstract
Michigan unemployment insurance programs intend to replenish the income for the workers on a temporary basis provided the employment loss was not due to the workers own fault. The employers finance these programs. Nevertheless, there are few employers who intentionally fail to make the required payments (taxes). Referred to as SUTA Dumping, this practice is being closely watched by the Federal government so that it can take necessary steps to stop such anomalies in the Unemployment Insurance System.
Michigan unemployment insurance programs are meant for those individuals who qualify for the unemployment insurance benefits. These benefits are extended to the worker who has lost his job temporarily through none of his fault. It may be such that the employer is downsizing or revamping the labor force in his company and the worker is rendered jobless. So that the worker is able to meet his financial needs as before, the compensation is given to the worker. All states in United States of America offer these programs but the norms adopted by each state may differ from each other in some parameters. However, these norms stay within the guidelines of the Federal government.
The worker needs to qualify for availing the benefits. The qualifying aspects encompass the following:
• The individual has to be out of service for no fault of his.
• Must have worked during the base period, which is 52 weeks prior to applying for the benefits.
• Once qualified, the individual has to be prepared for starting work again (re employment).
• All details of wage drawn during the tenure of the base period has to be provided.
SUTA or State Unemployment Tax Act:
The employer contributes the compensation, which is provided to the jobless workers. The employers pay taxes for employees to meet the financial demands of these claimants. There are certain employers who try and avoid such payments or avoid taxes. This practice is referred to as SUTA Dumping. The Federal Government has taken several measures to curb this practice so that all the employers are treated fairly.
Michigan Unemployment Insurance Benefit Package:
The unemployment benefits are not provided as a permanent source of income to the eligible. The benefits are usually rendered for a limited time span. Under severe conditions, these benefits may be extended. As far as the unemployment insurance amount is concerned, as of 2005, the minimum amount payable to the unemployed workers was USD$81 and the maximum was USD$362.