Form 518 - Registration For Michigan Taxes (Page 4 of 5) in pdf

518 Schedule A, Page 2

4. NON-PROFIT EMPLOYERS

NON-PROFIT employers and GOVERNMENTAL entities generally reimburse unemployment insurance benefits paid to former

employees on a dollar-for-dollar basis. Non-profit employers must, however, elect reimbursing status or they will be established as

contributing employers.

Under the MES Act, non-profit organizations shall finance their unemployment liability by (1) paying unemployment taxes on the

taxable wages of their employees (contributing) or (2) electing to reimburse the UA for any unemployment benefits paid to their former

employees (reimbursing).

All non-profit employers who elect reimbursing status must provide the UA a copy of the documentation, from the Internal

Revenue Service, granting 501(c)(3) status.

If you elect to be a reimbursing employer, check this box and attach a copy of your 501(c)(3) determination.

FAILURE TO CHECK THE BOX ABOVE WILL RESULT IN THE ESTABLISHMENT OF YOUR LIABILITY AS A

CONTRIBUTING EMPLOYER.

Bonding Requirements

The MES Act, Section 13(a) requires that non-profit employers who elect reimbursing status on or after December 21, 1989, and

who have, or expect to have, a gross payroll of more than $100,000 during any calendar year, are to provide a surety bond,

irrevocable letter of credit or other banking device approved by the UA, in an amount to be determined by the UA to secure the

employer's obligations under the MES Act. If you reach the $100,000 figure in a later year, you are obligated to notify the UA,

and provide the bond at that time.

Please provide amount (or estimate) of your gross annual payroll: $_____________________________

5. GOVERNMENTAL AGENCIES

If you are a governmental agency, identify the type below: city, township, commission, etc.

A. _________________________________________________________

B. Provide your fiscal year beginning date.

MONTH

DAY

Under the MES Act, a governmental agency shall finance its unemployment liability by (1) reimbursing the UA for any unemployment

benefits paid to their former employees (reimbursing) or (2) electing to pay unemployment taxes on the taxable wages

of their employees (contributing).

If you elect to be a contributing employer, check this box.

FAILURE TO CHECK THE BOX ABOVE WILL RESULT IN THE ESTABLISHMENT OF YOUR LIABILITY AS A

REIMBURSING EMPLOYER.

6. FEDERAL UNEMPLOYMENT TAX ACT (FUTA) SUBJECTIVITY

If you are subject to FUTA, give date of liability.

MONTH

DAY

YEAR

7. ELECTIVE COVERAGE (For employers who would not otherwise be liable for UA taxes, such as churches.)

If you wish to elect coverage under the MES Act, check this box. Approval is subject to Agency review; some qualifiers apply.

Give your reason for electing coverage on the line above. If you are an individual owner or partnership electing to cover family

members, specify their relationship to the owner or partners. You may not elect coverage for your parents or spouse, nor for your child

under the age of 18. Individual owners and partners cannot elect coverage for themselves. You may not elect coverage for domestic

employment below the statutory requirements stated above. Election of coverage remains in effect for a minimum of two calendar years.

Print Name of Owner/Officer

Title

Signature of Owner/Officer

Telephone No.

Date

Attach this schedule to your Form 518, Registration for Michigan Taxes and mail it to the Michigan

Department of Treasury. If you are a successor employer, please complete UA Schedule B.

Form 518 - Registration For Michigan Taxes Page 4

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