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January 5, 2012 Charlevoix County News • Page 3A
ONLINE AT WWW.CHARLEVOIXCOUNTYNEWS.COM
News
The following is an analysis of Public Act0269 of 2011 that was signed by the Gover-nor on Dec. 19, 2011. It was introduced onNov. 9, 2011 as Senate Bill No. 806 to amend1936 Public Act 1, entitled “Michigan Em-ployment Security Act.” It will be of inter-est to employers and employees. Althoughextensive, this is not the complete languageof the Act.PUBLIC ACT 269 of 2011The bill amended the Michigan Employ-ment Security Act to do the following: — Increase the taxable wage base from$9,000 to $9,500, but reduce it to $9,000 fornondelinquent employers when the balancein the Unemployment Compensation Fundreaches $2.5 billion. — Phase in a reduction of the experiencerating period from five to three years. — Allow certain employers with 25 or feweremployees to apportion their first-quartercontributions. — Phase in a requirement for all employ-ers to file quarterly wage reports electroni-cally. — Revise criteria that apply to seasonalemployment. — Provide for an employer’s account notto be charged for a week and the remainingweeks in a benefit year if a claimant re-ports earnings at least equal to the em-ployer’s weekly benefit charges for thatindividual. — Require claimants to be actively en-gaged in seeking work, and to report detailsof the work search, in order to qualify forbenefits. — Provide that claimants will be consid-ered unavailable for work if they fail tocommunicate with a chargeable employeror the Unemployment Insurance Agency(UIA), or cannot be reached by mail orphone. — Provide that, after a claimant has re-ceived benefits for 50% of a benefit year,work will not be considered unsuitable be-cause it is outside of his or her training orexperience if it pays at least 120% of theweekly benefit amount. — Until October 1, 2015, require benefitsto be reduced by 40 cents, rather than 50cents, for each dollar of remuneration aclaimant earns or receives, and provide thattotal earnings and benefits may not exceed1-3/5, rather than 1.5, times the weekly ben-efit amount. — Include theft, absenteeism, and the lossof a job requirement, in the grounds for dis-qualification for benefits. — Designate as a felony certain criminalviolations that involve benefits or paymentsover $3,500 but less than $25,000. — Include officers and directors in provi-sions that prohibit willful violations. — Increase the administrative fine foremployers’ noncompliance with reportingrequirements. — Increase from 20% to 50% the amountthat may be deducted from benefits orwages for improperly collected benefits, andotherwise revise restitution provisions. — Authorize the UIA to conduct an amnestyprogram for the recovery of improperlypaid benefits. — Allow the UIA to obtain restitution of benefit overpayments by various methods,including administrative garnishment. — Establish a new test for whether serv-ices are employment, effective January 1,2013. — Allow a business entity to ask the UIAto determine whether services are in cov-ered employment, and provide that onlywages paid after the determination will beused for benefit qualifying purposes, andpenalties will accrue only on contributionsbased on those wages. — Permit the UIA to disclose informationto law enforcement agencies for criminal in-vestigations. — Require a lottery prize of $1,000 ormore to be remitted to the UIA for theamount the winner owes to the Agency. — Eliminate the Special Fraud ControlFund. — State that a reference in the Act totransmission or receipt by mail includesany form of electronic transmission or re-ceipt approved by the UIA. — Delete a requirement that, at the closeof each fiscal year, money in the ContingentFund in excess of $15.0 million lapse to theUnemployment Trust Fund.EmployersEmployer Contribution RateThe Act requires the UIA to determinethe contribution rate of each contributingemployer for each calendar year accordingto calculations specified in the Act. The cal-culations take into account wages paid bythe employer over a five-year experiencerating period.Under the bill, the five-year experiencerating period will apply to an employer thatwas a contributing employer before Janu-ary 1, 2012, and does not convert from a re-imbursing employer to a contributingemployer on or after that date. A four-yearexperience rating period will apply to anemployer that becomes a contributing em-ployer during 2012, and a three-year experi-ence rating period will apply to an employerthat becomes a contributing employer on orafter January 1, 2013.The bill also revises the calculation of thechargeable benefits component of an em-ployer’s contribution. For 2012, the calcula-tion will be based on the amount of benefitscharged to the employer’s experience ac-count and the employer’s taxable payrollwithin a 48-month period (instead of 60months); and for 2013 and future years, thecalculation will be based on the amountcharged to the experience account and pay-roll within a 36-month period.Taxable Wage LimitThe Act establishes a “taxable wagelimit” (or base) for the purpose of determin-ing the amount of contributions due froman employer.Beginning with the 2012 calendar year,the bill increases the taxable wage limitfrom $9,000 to $9,500. If the balance in the
T R A C K I N G L E G I S L AT I O N
A weekly compilation of selected bills, resolutions and actions of the House and Senate in thestate Legislature. To see more detail contact www.legislature.mi.gov/
State OF MIChIgan CaPItOl BuIlDIng
PhOTOGRAPhER: BRIAN ChARLES WATSON
Unemployment Compensation Fund at the begin-ning of a year equals or exceeds $2.5 billion, how-ever, and the UIA projects that the balance willremain at or above that level for the remainder of the quarter and the entire next quarter, the taxablewage limit for that quarter and the next quarterwill be $9,000 for an employer that is not delin-quent in the payment of unemployment contribu-tions, penalties, or interest.Apportioned Employer ContributionsThe bill requires the UIA to allow a contributingemployer that employs 25 or fewer individuals dur-ing the pay period that includes January 1, 2012, orduring the corresponding pay period in each sub-sequent calendar year, and that incurred 50% ormore of its total previous year’s contribution obli-gation in the first quarter of that year, to pay itscontributions due in the following year throughquarterly payments that distribute the payment of the first quarter’s obligation equally over the fourquarters in that year.The first quarterly payment must include 25% of the obligation incurred in that quarter. The sec-ond, third, and fourth quarterly payments eachmust include the obligation incurred in that quar-ter plus 25% of the first quarter’s obligation.To avoid interest and penalties that otherwisewould apply to those payments, the employer mustnotify the UIA of the election to make apportionedpayments with the first quarter’s payment, andthen timely file each quarter’s payment in theamounts prescribed.These provisions will apply to contributions be-ginning in the 2013 tax year.
See
Legislation— 9A
Compd b Jm Akans
There’s nothing quite likethe turning of the year toprovoke one to look back at the times past with asense of nostalgia for whathas been as well as antici-pation of what is to be.Looking back 100 yearsago, when the 20th Cen-tury was just gettingsteady on its legs, theworld was a significantlydifferent place than it istoday. Here are a few“mind boggling” statisticsfrom a world just a fewgenerations past;- The average life ex-pectancy was 47 years;according to the Center for Disease Control (CDC)today it is 77.9 years.- Only 14 percent ofhomes had a bathtub.- Only 8 percent ofhomes had a telephone.- The maximum speedlimit in most cities was 10mph.- The average wage in1909 was 22 cents per hour. The average worker made between $200 and$400 per year. A compe-tent accountant could ex-pect to earn $2000 per year, a dentist $2,500 per year, a veterinarian be-tween $1,500 and $4,000per year, and a mechani-cal engineer about $5,000per year. According to the2010 Census, today’s me-dian family income is$49,777.
- The tallest structure inthe world was the EiffelTower (at 1,063 ft).Today, the world’s talleststructure is Burj Khalifa inDubai, at 2,723 feet.
- More than 95 per-cent of all births took place at HOME.- Most women onlywashed their hair oncea month, using Boraxor egg yolks for sham-poo.- Canada passed alaw that prohibitedpoor people from en-tering into their coun-try for any reason.- The fiveleading causesof death were:1. Pneumoniaand influenza2. Tubercu-losis3. Diar-rhea4. Heart disease5. Stroke- In 2009, the leadingcauses of death were;1. Heart disease2. Cancer 3. Stroke4. Chronic lower respira-tory diseases5. Accidents- The population of LasVegas, Nevada, was 30people. Today, the cityhas 2.7 million people ac-cording to the 2010 USCensus.- Crossword puzzles,canned beer, and ice teahadn’t been invented yet.- There was no Mother’sDay or Father’s Day.- Two out of every 10adults couldn’t read or write. Only 6 percent of allAmericans had gradu-ated from high school.That figure is at 69 percentas of a 2009 report pub-lished by the Alliance For Excellent Education- Sugar cost four cents a pound, eggswere fourteen centsa dozen, and cof-fee was fifteencents a pound.- Marijuana, heroin, andmorphine were all avail-able over the counter atthe local corner drug-stores. Back then pharma-cists said, ‘Heroin clearsthe complexion, givesbuoyancy to the mind,regulates the stomachand bowels, and is, in fact,a perfect guardian ofhealth.’- Eighteen percent ofhouseholds had at leastone full-time servant or do-mestic help.- There were about 230reported murders in theentire United States. TheU.S. Department of Justicereported 16,272 homicidesin 2008.- There had been noWorld Wars.- There were only 8,000cars, (in 2007 the Depart-ment of Transportation(DOT) estimated therewere 254.4 million regis-tered passenger vehicles)and only 144 miles ofpaved roads, (up to 3.9million as of 2008 accord-ing to Bureau of Trans-portation data).
How hings have changed in 100 years