What Is the Cap on Unemployment in Michigan?

The state of Michigan Department of Licensing and Regulatory Affairs administers the Unemployment Insurance Agency for unemployed workers. Claimants must file with the state to determine eligibility, the weekly benefit amount, report earnings and file a weekly claim. In addition to filing claims with the state for unemployment benefits, individuals must be available for work and actively seeking new employment.

Maximum Benefit and Eligibility

The base period for determining Michigan unemployment eligibility consists of the first four of the last five quarters before applying. As of the date of publication, the total earnings in the base must be a minimum of 1 1/2 times the highest paying quarter. Workers must have earnings in at least two quarters during a base period and a minimum of one quarter must have earnings of at least of $2871 to qualify for benefits. The maximum weekly benefit the state of Michigan pays is $362. The state requires legislative approval to raise the maximum unemployment benefit amount.

Alternative Eligibility

Claimants who do not meet Michigan eligibility requirements may qualify for compensation with an alternative base period, which consists of the four most recent quarters before filing for unemployment. In addition, those who do not meet the monetary eligibility requirements may qualify using the alternative earnings qualifier, which requires earnings in a minimum of two quarters. The total wages for all four quarters must be a minimum of $16,467, which is 20 times the state average weekly wage.

Weekly Benefit Calculation

To determine weekly benefits, multiply the earnings in the highest paying quarter by 4.1 percent. The Michigan Unemployment Insurance Agency pays additional benefits for dependents. The state will provide $6 per week for up to five dependents. The weekly benefit amount with dependents may not exceed the $362 cap.

Benefit Weeks

The Michigan Unemployment Insurance Agency caps the number of weeks a claimant may receive benefits, as well. To calculate the number of benefit weeks, multiply the earnings in the base period by 43 percent. Divide the result by the weekly benefit amount. Claimants may receive a minimum of 14 weeks or a maximum of 26 weeks in unemployment compensation. According to the State of Michigan Department of Licensing and Regulatory Affairs, during times of high unemployment, claimants may qualify for an additional 13 weeks of unemployment benefits.

Earning Allowance

The state will reduce the weekly benefit amount for claimants working part-time while collecting unemployment compensation. To qualify for unemployment while working, the employment must be less than full-time. The total amount of benefits and earnings cannot be higher than 1 1/2 the weekly unemployment amount. For individuals with earnings equal or lower than the weekly amount, the state will deduct 50 cents from the weekly benefit amount for every dollar the claimant earns. For claimants with earnings over the weekly benefit amount, but less than 1 1/2 times the weekly compensation, the state will deduct the total of the earnings from 1 1/2 times the weekly compensation amount. Michigan deducts one week from the total number of benefit weeks for each payment including reduced payments.

References

• State of Michigan Department of Licensing and Regulatory Affairs Unemployment Insurance Agency: Claiming Unemployment Benefits in Michigan
• Michigan Department of Licensing and Regulatory Affairs Unemployment Insurance Agency: Eligibility (Ability, Availability, Seeking Work, Reporting, Participating in Profiling)
• State of Michigan Department of Licensing and Regulatory Affairs Unemployment Agency: About UIA and Unemployment Insurance in Michigan