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Payroll CS: Michigan Form UIA-1028 Setup and Guidelines

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Form UIA-1028 has now replaced our previously used UIA-1020, UIA-1020R, and UIA-1017 forms for Michigan. (UIA is Michigan's Unemployment Insurance Agency.) Below are some important considerations regarding this form

General Considerations

  1. Due Date: The due date is the 25th of the month following the end of the quarter.
  2. The form must be filed even if there is no payroll for the month.
  3. The report can currently be mailed, entered on-line manually, or submitted via Internet.
  4. The SUTA rate for Michigan is now split into 2 client-specific rates: Base/Contribution Rate, and Obligation Assessment Rate. These two portions need to be broken out under the Client Properties | Payroll tab | Michigan SUTA Details screen. They are calculated separately on the form and then combined into a total amount due. Both of these rates are available from Form UIA 1771 issued by the State.
  5. The Base Rate (Contribution Rate on literature) is rounded to the nearest dollar amount (.00 - .49 rounding down, .50 and above rounding up). This Contribution rate is actually a combined rate of three components, but it is expressed and applied as a single rate and then rounded to the dollar.
  6. The Obligation Assessment Rate is NOT rounded to the dollar; it is simply rounded to the nearest cent.
  7. Because we cannot round the quarterly Base SUTA rate to the dollar during payroll check entry, there will likely be a discrepancy for the Base Rate between the UIA-1028 and our regular reports (Payroll Tax Summary, Depository Totals, etc.). Our internal reports are based on checks and/or earnings amount totals flowing from those checks.
  8. Any amounts for interest or penalty charges (including late fees and non-reporting fees) are also NOT rounded to the nearest dollar. Because Michigan uses the "current interest rate" to calculate penalty and interest, and because they promote their "penalty and interest calculator" on their web site, in our software we will not be providing any calculation for penalty and interest in MI.

Setup in CSA

  1. Client Properties: The SUTA rate for Michigan is now split into 2 client-specific rates: Base/Contribution Rate, and Obligation Assessment Rate. These two portions need to be broken out under the Client Properties | Payroll tab | Michigan SUTA Details screen. They are calculated separately on the form and then combined into a total amount due. Both of these rates are available from Form UIA 1771 issued to the client by the State.
  2. Michigan Payroll Tax Processing:
    1. Utilities| Payroll Tax Processing… | Michigan Flag | Setup | Supplemental Info | General Tab | Unemployment section (top):
      • "Final Report" should only be marked for a firm going out of business. It will check the YES box on page 2, which also requires submission of form UIA 1772, which is not in our program.
      • "Reimbursing employer" is only applicable if the total SUTA rate is zero. It will cause page 2 to display and calculate all rates as zero.
      • "Payment Apportionment" allows for the first quarter's liability payment to be apportioned into 4 equal payments submitted with each quarterly form. Marking this box and entering the year before editing or processing the first quarter form UIA-1028 will cause this to calculate correctly for each quarter of that year. This checkbox will flow to Page 2 Section 3 of the UIA-1028 form. The first quarter Tax Due amount will divide the full Amount due by 4 and enter that into the Amount Enclosed field; that same amount will then be added to the Amount Enclosed box for quarters 2 through 4. (This same process of retrieving 1st quarter data for the UIA-1028 form will also auto-fill and/or override any "Apportionment amount" field number previously entered under Supplemental Information because this is a standard calculation. The "Payment apportionment" box should only be marked for clients meeting the following criteria: 25 or fewer employees AND for whom 50% or more of the previous year's taxes were due in the 1st quarter.)
    2. Supplemental Info | General Tab | UIA-1028 E-File Information (bottom): A payment method of Direct Debit should be selected when you want to include a direct debit payment. When Direct Debit is selected, still follow the normal process to create the Internet/magnetic media file. However, upon saving to submittable format, 2 separate files are created, both of which need to be uploaded to MiWAM (Michigan Web Account Manager).

Creation and Submission of File Electronically: The process is basically the same as W-2's and 1099's, as well as most other states offering SUTA file submission, with the following differences

  1. Creation and submission of e-Enrollment (File | e-Enrollment) is necessary before an accountant is eligible to submit UIA-1028 forms on behalf of a client as a Service Provider/Third Party Administrator. Becoming a Service Provider/Third Party Administrator for certain features can require signed Power of Attorney (POA) and/or other authorization from the employer, and this information is entered into the e-Enrollment dialogue before creation and submission of the Internet/magnetic media file.
    1. After creating files, follow the normal process to create the Internet/magnetic media file, and upload them to the MiWAM web site. These standard options are located under the File menu at the top left of the e-Enrollment box itself.
    2. Like other Internet/magnetic media files, multiple clients are appended into a single file for batch uploading, so previously submitted clients need to be removed before new enrollments are saved to submittable format. However, unlike other Internet/magnetic media files, repeated creation of enrollment for the same client will replace the previous entry for that client rather than duplicating or appending it.
  2. If a payment is being included with the electronic file, CSA actually saves 2 files upon saving to submittable format, each of which must be uploaded - file MIUIA1028.TXT for the form itself, and file MIUIA1028PMT.TXT for the payment.
  3. We use only the bulk processing format, intended for use uploading multiple clients in a single file. If a firm would like to upload individual clients, the same bulk filing option will need to be selected on the MiWAM site (https://miwam.unemployment.state.mi.us/), and previously created client files will need to be removed from the file before saving each new client's file to submittable format and uploading. (This is virtually identical to the way w-2's and 1099's are processed electronically.) The bulk filing option will be available in both the Employer's (actual clients login) and the Employer Representative's (Accountants own setup by client) portal under the "Multi-Account Services" tab. In this tab there will be an option to upload the Bulk File or Bulk Payment. This tab should be available for all logins and is not specific to the Service Provider accounts. Note: We do not support the 72 byte file format. Suggestion #422832 is available for firms requesting this be added to CSA.

Additional General Information

  1. The requirement to file on-line will be implemented over a four-year period.
    • Beginning in 2012, employers with more than 25 employees are encouraged to file on-line.
    • Beginning in 2013, an employer with more than 25 employees will be required to file on-line.
    • Beginning in 2014, that requirement will extend to employers having more than 5 employees.
    • Beginning in 2015, all remaining employers will be required to begin filing on-line.
  2. Additional links:

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