DISCHARGE OF EMPLOYER CONTRIBUTIONS                             H.B. 5555 (H-2):

                                                                                         SUMMARY OF BILL

                                                                         REPORTED FROM COMMITTEE

House Bill 5555 (Substitute H-2 as reported without amendment)

Sponsor:  Representative Sue Allor

House Committee:  Oversight

Senate Committee:  Economic and Small Business Development

CONTENT

The bill would amend the Michigan Employment Security Act to allow an eligible contributing employer to discharge liability for its first-quarter contribution obligation by making quarterly payments that distributed the first-quarter contribution obligation equally over the first quarter and the immediately succeeding three quarters if in the first quarter of a year the employer incurred a contribution obligation that was equal to 50% or more of the its total contribution obligation for the immediately preceding year.

MCL 421.13                                            Legislative Analyst:  Tyler P. VanHuyse

FISCAL IMPACT

The bill would not have a significant fiscal impact on State or local government. The bill would allow for certain larger employers to apportion their State unemployment tax payments for the first quarter of a year over the whole year. This would not change the overall amount employers paid, but rather would change the timing of those payments. Accordingly, the State would receive a lower April payment, but increased payments for the subsequent quarters of the year.

Date Completed:  5-20-22                                        Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.