Mich. Bill Seeks To Stop Unemployment Tax Hike Amid Virus

A Michigan bill would provide relief from the COVID-19 pandemic by sparing employers from paying more unemployment taxes into the state's unemployment compensation fund if the shortfall that triggers the increase is attributable to a state of emergency.

H.B. 6136, introduced Tuesday by Rep. Matt Hall, R-Marshall, would prohibit an increase to a component of a formula used to calculate employer contributions to the fund, and would save employers an increased payment, according to a legislative summary. An increase is expected for 2021, according to the report.

The bill would prohibit the increase if the shortfall is due to a declared state of emergency that shuttered or restricted the operations of employers contributing to the fund, circumstances that mirror the public health emergency measures adopted by the state to limit the spread of the novel coronavirus.

The measure was referred to the state House Committee on Commerce and Tourism for further consideration.

--Editing by Neil Cohen.

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