While all states are required to follow certain federal laws, they also set their own laws and regulations on many issues. Unemployment tax rates fall under state regulation, so each state’s rates vary for employers across the country.

The tax rates of each state can vary depending on how they pay out benefits. For instance, some states will pay unemployed workers benefits for up to 20 weeks, while other states will pay up to 26. The amount each worker receives per week also varies. When workers receive higher weekly benefits for a longer number of weeks, this can mean a state has higher unemployment insurance rates.

Each state has its own bureau or agency in charge of regulating and collecting unemployment taxes from employers. In Michigan, the Unemployment Insurance Agency receives payments from employers and pays out benefits to workers. Unemployed workers in Michigan receive between $117 and $362 per week (based on their previous salary) for a minimum of 14 weeks.

Currently, the Michigan unemployment insurance tax rate ranges from .06 percent to 10.3 percent. Most companies that are not in the construction industry start paying at a 2.7 percent tax rate. Over their years in business, the rate an employer pays changes based on many factors, including how much their former workers collect in unemployment benefits and the size of the company’s payroll.

To lower Michigan unemployment insurance rates for all employers in the state, employers should work to report firings and hirings quickly. Proper reporting can help employers avoid fines and penalties while insurance workers don’t receive improper payments. In Michigan alone, nearly $15.2 million has been spent in overpayments to workers. Reducing these overpayments can help reduce tax rates for employers in all industries.

To discover more differences and similarities across state unemployment insurance costs, visit Unemployment Tracker’s Unemployment Insurance US Map. Click on each state to easily find state-specific statistics about tax rates, weekly benefit amounts and more.