State unemployment tax to increase for businesses

LANSING, Mich. – Michigan business owners across the state are getting hit with a surprise tax increase in 2021.

A surge in unemployment claims last year due to the pandemic has depleted the state’s unemployment trust fund.

Businesses normally pay into the fund and now because the money’s low, the state said businesses have to make up the cost.

The more people out of work, the more the unemployment tax rate increases, which means businesses pay more into the fund.

According to the Small Business Association of Michigan– restaurants could feel the most impact.

Before the pandemic, the trust fund had $4.5 billion dollars. Now, there’s a little over $700 million.