Governor Vetoes Funding to Help Employers with Unemployment Taxes

Governor Gretchen Whitmer has vetoed $220 million in General Fund dollars that would have helped employers fund an extension of unemployment benefits.  The funding was part of an effort in the final days of the legislative session to respond to MMA and manufacturers’ calls to avoid imposing additional taxes on employers for a temporary extension of unemployment benefits from 20 to 26 weeks.

Despite vetoing the funds that would have supported the employer-funded Unemployment Trust Fund, the Governor signed legislation extending unemployment benefits from 20 to 26 weeks until the end of March 2021 and called on the Legislature to make the additional benefit weeks a permanent part of Michigan law.  She also called for an increase in the weekly benefit paid to unemployment individuals. 

Also signed into law by the Governor today was funding for grants to small businesses and individuals impacted by the latest Epidemic Order, as well as funding for vaccine distribution, COVID-19 testing and an extension of wage enhancements for direct care workers.

MMA’s Government Affairs team worked hard to develop a creative solution to prevent an increase in taxes on employers due to the dramatic increase in unemployment in 2020.  While specific General Fund dollars were vetoed, language was written into the bills that prevents an extension of benefits unless the Legislature appropriates funds.  Stay tuned for further developments and contact MMA’s Dave Worthams at 517-487-8511 or regarding MMA’s ongoing efforts to support manufacturers through the COVID-19 pandemic.

Resources for Manufacturers

Stay updated and compliant with the many changes imposed over the last few weeks. Find state, federal and member resources on MMA’s COVID-19 Resources.

Please continue to reach out to the MMA team with questions.