Unemployment for Businesses
State Guidance To Employers Contemplating Potential Layoffs
The Michigan Department of Labor and Economic Opportunity (LEO) has provided guidance to Michigan employers on how to avoid potential layoffs related to COVID-19. Employers are strongly urged to place employees on temporary leave and advise the worker that they expect to have work available within 120-days as opposed to termination.
Work share program support: Work sharing or “cost-sharing” programs allow employers to reduce hours for their employees in order to keep more workers on payroll. Employees receive unemployment benefits to help make up for reduced paycheck. For states with work sharing program options, like Michigan, the federal government will reimburse the state 100 percent for this program. Through executive order, Governor Whitmer expanded the Michigan’s Work Share Program. The federal stimulus package will help support our state carry out this option for businesses and employees. For more information, please visit: www.michigan.gov/workshare.
Emergency Paid Leave
Many workers in America currently have no paid leave and are being forced to choose between their paycheck, their health, and the health of the people around them. The emergency paid leave provisions passed by Congress and signed into law by the President are a critical step toward protecting families’ financial security and mitigating the spread of the coronavirus.
Below is information on eligibility for emergency paid sick leave and paid family leave.
Committee on Education and Labor Fact Sheet: Eligibility for Emergency Paid Sick Leave
U.S. Department of Labor Fact Sheet for Employers
U.S. Department of Labor Questions and Answers
Treasury, IRS & Department of Labor press release to recover the costs for providing coronavirus-related leave.
Paid Sick and Family Leave Tax Credit: Employers who provide required leave to their employees and who employ less than 500 employees are eligible for a tax credit to offset the costs of such leave. This tax relief will be provided against quarterly payroll taxes (those paid in connection the Form 941). For additional guidance, please refer to the IRS's website.