What is this Petition about?

This is a petition to increase an individual’s maximum weekly benefit from $362 to $600 a week. By signing this petition, you are agreeing that the Michigan weekly unemployment benefit should be updated (from both 2002 when the wage increased 62 dollars and 2011 when 6 weeks of availability were removed) to reflect the times and increased rates that have happened since the last revision.

History-

-In 2002 Michigan unemployment rate raised from 300 a week to 362 (giving 1,612 in benefits to participants that used all 26 weeks of eligibility).

-In 2011 Governor Rick Snyder removed 6 weeks of eligibility from the overall 26 weeks per year bringing it down to 20 weeks of eligibility per year(taking away 2,172 dollars from eligible participants).

In Comparison-

-Illinois-$542 (Individual) up to $742 (w/dependents). Weeks of eligibility-26

-Indiana-$390. Weeks of eligibility-26

-Michigan-$362. Weeks of eligibility-20

-Minnesota $857. Weeks of eligibility-26

-Ohio-$530 (no deps) to $715 (2+ deps). Weeks of eligibility-26

-Pennsylvania $594 + $8 max dependent allowance. Weeks of eligibility-26

-Wisconsin-$370. Weeks of eligibility-26

How Unemployment Works-

Unemployment insurance works by collecting tax from employers each year and redistributing those funds to people who apply for unemployment benefits after losing their job. Individuals fill out forms at their state’s unemployment office and, pending approval, receive 13 to 26 weeks of supplemental pay. The amount of unemployment benefits a person can earn depends on how much they have worked in the past and how much they earned at their previous job. Most states require employees to have worked for a minimum amount of time to be eligible for benefits. If someone starts working part-time after being laid off from a full-time job, they can still be eligible for unemployment benefits at a reduced rate.

Who pays for unemployment benefits?-

Unemployment insurance is funded through a company’s payroll taxes. Each individual state has its own unemployment office that manages applications and payments, with the requirements to qualify for benefits varying from state to state.

Two sections of payroll tax go toward unemployment: the Federal Unemployment Tax Act fee (FUTA) and the State Unemployment Tax Act fee (SUTA). The FUTA  tax is 6% on $7,000 of each employee’s annual wages, costing a maximum of $420 per employee per year. Employers always pay the FUTA tax and in exchange are eligible for a maximum 5.4% tax credit. Companies that qualify for the maximum tax credit end up paying 0.6% of the $7,000 wage liability, making the per-employee cost of unemployment insurance for FUTA only $42 each year.

Each state determines its own rates for SUTA tax, so it’s important to research the requirements where your company is based. Companies that operate in multiple states or have employees working remotely in different states may be subject to additional unemployment tax. While the federal taxable income limit for unemployment insurance is $7,000, states can set their own wage base for SUTA taxes. 

SUTA tax rates can be impacted by the number of unemployment claims made against your company. Employers who dismiss a large number of employees may be subject to a higher SUTA rate than those that have not been liable for any unemployment claims.