Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 38

• • The Michigan Business Taxes Registration Booklet contains the Form 518 for paper registration — and it’s a good reference tool to have on hand even if you’re registering online. It is located at www.michigan.gov/ documents/518_3620_7.pdf A contributing employer is required to file tax reports with the UIA at the end of each calendar quarter, and pays a state unemployment tax based on the rate applied. Contribution rates range from 0.06% to 10.3% for 2017 and the wage base is $9,000. For more specific detail on rates and contribution requirements, contact the UIA online at: www.michigan.gov/uia or phone 800.638.3994. Employment Regulations Employers have a legal as well as an ethical obligation to provide a safe and equitable workplace. There are state and federal regulations governing workplace health and safety administered by the Michigan Occupational Safety and Health Administration. MIOSHA’s Consultation Education and Training (CET) Division offers free statewide safety and health assistance to employers and employees with a wide range of customized services to assist managers and staff in creating and maintaining a safe and healthful workplace. To learn more about CET services, call 800-866-4674 or download an information flyer at: www.michigan.gov/documents/dleg/ wsh_cet0165_216929_7.pdf Required Workplace Posters Michigan employers are required to display certain posters in the workplace, and posters are available for free from various government agencies. A few key posters and the associated regulation are listed below, but there may be more poster requirements for your business as poster requirements depend on whether your business has requirements under federal or state jurisdiction. • See Appendix B for a list of state and federal required posters and agency contact information. • For general information on safety posters, go to www.michigan.gov/miosha and click on the “Quick Links MIOSHA Workplace Posters. Fair Labor Standards Act (FLSA) The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards covering employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a federal minimum wage of not less than $7.25 per hour currently. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. However, employers that are covered by both State and Federal Minimum Wage law should pay the higher applicable rate. (See Michigan Minimum Wage Law below.) Exempt or Nonexempt: Employees whose jobs are governed by the FLSA are either "exempt" or "nonexempt." Nonexempt employees are entitled to overtime pay. Exempt employees are not. Most employees covered by the FLSA are nonexempt. Some are not. For an employee to be classified exempt from overtime FLSA requirements, the job must meet both salary and duty tests. In mid-2016, Department of Labor proposed sweeping changes to overtime rules and salary levels to meet exempt status. But a Federal district court judge in Texas placed a nation- wide injunction on the rule revisions, preventing it from taking effect on Dec 1, 2016 . At time of printing, the $23,660 exempt-status salary threshold in place since 2004, is still in effect. Classifying positions as exempt or nonexempt is still complicated and includes duty tests. As such, it is highly recommended to consult with a qualified human resources professional. For further information about FLSA, visit www.dol.gov/whd/flsa/ Michigan Minimum Wage Law Public Act 138 applies to employers in Michigan that have two or more employees age 16 and older. Michigan minimum wage effective January 1, 2017 is $8.90/hour; effective January 1, 2018 is $9.25/hour. PA 138 allows an employer to pay $4.25 per hour to a newly hired employee age 16 to 19 for the first 90 days of employment.. It also allows a Michigan employer to pay 85 percent of the minimum wage to employees aged 16 and 17; however, note that the current Federal Minimum Wage rate (at time of printing) is $7.25 per hour. PA 138 also covers overtime, compensatory time, and wage rates for tipped employees. For more detailed Michigan Minimum Wage information visit www.michigan.gov/lara/0,4601,7-154-59886_27909-330073--,00.html or call the Wage and Hour Division at 517.284.7800. 36