Audits of Michigan employers help support the Unemployment Insurance (UI) Tax Program by verifying an employer is following the Michigan Employment Security Act (MES Act) and Administrative Rules. The Michigan Unemployment Insurance Agency’s more than 25 auditors are the gatekeepers to the UI tax system.
There are three main purposes of an audit:
In 2024, UIA auditors conducted 2,927 employer audits, discovered 12,243 misclassified workers, and audited over $3 billion in wages.
Notification will be by phone or email to confirm the appointment, date, time and location as well as how to contact the auditor.
If selected for an in-person audit:
It will be conducted where the records are available (for example a business’ office, accountant’s office, or office of a designated business attorney). A sufficient and quiet workspace must be provided.
If selected for electronic audit:
Documents can be securely uploaded using Michigan Web Account Manager (MiWAM).
If a business owner or officer chooses to not participate they must complete and sign an Employer Representative Audit Authorization Form by email or through MiWAM before the audit begins.
The designated representative can be an accountant, attorney, or office manager. They must be authorized to work with the auditor, have knowledge of the business’ structure and records, and empowered to act on the business’ behalf.
For an in-person audit, the owner, officer or designated representative must be available to answer questions that come up or more documents are needed.
For an e-audit, the owner, officer or designated representative should frequently review their preferred method of communication with the auditor (such as email), to answer questions or requests for additional documentation.
The auditor will send a Post Audit Discussion email with findings and will provide the Post Audit Acknowledgement Form (PAA).
After UIA receives a PAA, the business owner or officer will receive a Post Audit Letter mailed to the address on the business’ MiWAM account.
Interested in how long an audit takes or why you were selected? Check out the FAQ for more popular questions.
