Set up Michigan’s secondary unemployment wage base

If you received Form 6354, Notice of $9,500.00 Taxable Wage Base and haven't paid all of your delinquent payroll tax and interest in the 14 day window provided, you are subject to the $9,500.00 wage base for the remainder of this tax year. You will need to indicate in QuickBooks Online Payroll to use the higher wage base amount.

Set up MI secondary $9,500 wage base

1. Go to Settings , then select Payroll Settings.
2. From Michigan Tax select Edit ✎.
3. Check I am subject to a higher wage base due to delinquency.
4. Select Save then Done.

Intuit will recalculate any paychecks already created dating back to January 1 to adjust to the higher wage base, so tax amounts are accurate. 

You will continue to only see one tax item for MI UI on paychecks and in reports.

The February 2025 release includes a new secondary MI UI wage base tax item: Michigan UI Wage Base Increase. 

Note: If you are subject to the higher wage base, you'll have two MI UI wage base items: one for $9,000 and one for $9,500. The second wage base tax item of $9,500 will only tax the $500 difference. 

Set up MI secondary wage base payroll item

1. Download and install the latest payroll update. The Add Item Wizard for the new Michigan UI Wage Base Increase item will launch automatically when you pay employees or add new Michigan employees.
2. Complete the Add Item Wizard.
   • In the Does your MI UI Company rate included in the UI rate screen, select No.
   • In the Have you already created your own payroll item to track MI UI Wage Base Increase screen, select No, then Next.
3. Select the agency vendor name, or add it. 
4. Enter your MI unemployment account number, and select Next.
5. In the Do you want to set up affected employees, select Yes then Next.
6. Enter your Michigan unemployment tax rate.
   • If you are subject to the higher wage base, enter the same tax rate used in the standard Michigan unemployment tax item. Select Next, then Finish.
   • If you are NOT SUBJECT to the higher wage base, enter 0%. Select Next, then Finish.

Businesses that file tax reports on time and keep all payments up to date.

You might still qualify. In February, you will receive UIA Form 6354 Notice of $9500 Taxable Wage from Michigan UIA. The form allows you to resolve any account discrepancies within 14 days. Unresolved discrepancies will result in the higher taxable wage base of $9,500.