Unemployment question again....

Discussion in 'Business Operations' started by justmjc, Jan 6, 2004.

  1. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    I know in Michigan the unemployment rate for employers flucuates from 2.7% to 8.1%, I believe. My question is how is the amount I pay determined from these rates for the people that use this for their employees? They don't tell that on the Michigan.gov website.

    I mean, does the amount I pay equal that percentage multiplied by my annual income?

    Or is that rate multiplied by the amount the employee makes per employee?

    I understand how they get the rates, however, I'm not sure of the formula they use to determine a dollar amount I pay per employee. Any help?

    Of course I could call unemployment, however, this is a little quicker than waiting on the phone for hours upon hours.......:(
    Of course each state might be different, but how about a rough idea what this all is based upon? Thanks
     
  2. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    No one hires employees and understand what they pay ?
     
  3. grassguy_

    grassguy_ LawnSite Senior Member
    from Ohio
    Posts: 633

    Well the best explanation for how they determine what you pay is a weighted average of your industries experience rating with your own businesses rating. To determine an actual amount for an employee would probably be difficult to establish except knowing what your business's annual percentage rate is and what the maximum allowable amount is for that employee that you have filing and the amount of service time he/she has, plus if that person had a previous employer that payed into the system for that person during the past 18 months, (at least in Ohio). It might be easier to calculate the thrust capacity of the Space Shuttle at zero gavitational pull than to use any formula they could give you, lol.
     

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