Unemployment Assistance Expanded Options for COVID-19
Michigan Unemployment Insurance Agency (UIA)
Employers have several options available for downsizing their workforce. You may have heard about the Work Share Program and Temporary Leave Designation offered by the UIA. Access to these programs has been expanded in response to COVID-19 and we’ve provided brief summaries below.
This summary from the State of Michigan provides an outline of these options as well:
> State of Michigan Guidance to Employers Contemplating Potential Layoffs – 3.18.20
QuickFacts (more details below)
WorkShare Program
Our Advice: If your business can afford it, this is an option to reduce an full time employees’ hours so they can collect partial unemployment.Temporary Leave vs. Termination
The State’s Advice: If you cannot afford to keep employees, instead of terminating them, the state recommends you place them on temporary leave. This gives Michigan more access to resources to provide support for a longer period of time.
For help on these options, go to http://www.michigan.gov/uia
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Work Share Program (For Full-Time Employees Whose Hours are Cut by 15% to 45%) |
| What: If your business can afford it, you can reduce an employee’s hours and they can collect partial unemployment. Participating employees must be eligible for regular unemployment benefits and be full time employees.
Work Share Program – Brochure Apply: The employer handles the entire Work Share process including application for and payment of Work Share benefits. Applications and certifications are submitted online through the Michigan Web Account Manager (MiWAM) at www.michigan.gov/uia. For more information about Work Share: Call 1-844-WORKSHR (967-5747) |
Temporary Leave vs. Termination |
| What: The state can bring more resources to the table to help “temporary leave” employees for a longer time than with UIA funds alone. If you cannot afford to keep employees, instead of terminating them, the state recommends you place them on temporary leave. You are still taking them off your payroll, but this designation allows the state to draw from federal funds to support unemployment assistance for that employee. The state cannot use those funds for terminated employees, relying on the limited state unemployment insurance funding pool.
Steps for EMPLOYER: Steps for EMPLOYEE: The application process is the same for employees regardless of if they have been terminated or put on temporary leave. Employees must submit an application online through the Michigan Web Account Manager (MiWAM) at www.michigan.gov/uia. |