Regulatory News and Trends

Minimum wage increases to $10.10 – Effective Jan. 1, Michigan’s minimum wage rate will increase to $10.10 an hour, up from the current $9.87. The 85% rate for minors aged 16 and 17 increases to $8.59 an hour. Tipped employees rate of pay increases to $3.84 an hour. The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

See/print the current Wage and Hour Poster here.

Minimum wage/paid leave pending legal challenge update – On Dec. 13, the Court of Appeals will hear oral arguments on a challenge to the amendments made to the 2018 proposals on minimum wage/paid sick leave. Court of Claims Judge Douglas Shapiro ruled in July that the original proposals as adopted must stand, overturning the amendments added in late 2018 that made the laws more palatable for employers. Shapiro then issued a stay on his decision until Feb. 19 to give challenges time to play out in the courts.

MRA joined a business coalition amicus brief supporting the legislature’s ability to make the changes it did and warning against the harm overturning those amendments would bring on employers. The appeals court may not issue a decision until late January at the earliest. Regardless of how the court rules, the case will likely be appealed to the Michigan Supreme Court.

Holiday trends report – The Food Industry Association’s U.S. Grocery Shopper Trends 2022 Holiday Shopping October report found that while inflation remains a top concern and enthusiasm about the holiday season is down, Americans plan to celebrate the holidays to a greater extent than last year.

The report found:

• Holiday celebrations will be focused on in-person, social plans.

• Those who are shopping for gifts reported plans to shop further ahead of the December holidays than usual.

• 55% of shoppers will purchase new clothes less often.

• 47% will cut back on gifts for family.

• Gen Z shoppers were most likely to get ahead on gifts (35% vs. 28% Millennials, 24% Gen X, and 22% Boomers).

• Millennials are planning to purchase food early vs. 25% Gen Z, 26% Gen X, and 20% Boomers.

• 61% of shoppers expressed concern with rising prices for essentials.

• Boomers were most concerned about rising prices (70%) and out-of-stock food items (48%).

• Households with kids have greater concerns about rising prices including food from grocery stores (72%), rent/housing costs (66%), holiday gifts (59%), and food from restaurants (56%).

• Managing inflation prices: 44% said they would purchase more store brands and 41% said they would purchase fewer items overall.

• Loyalty programs remain key to managing prices for shoppers – only 16% said loyalty programs were unimportant.

In addition to the holiday numbers, the Food Industry Association also reported that online grocery spending dropped, and shoppers reported that visits to the store helped to manage their overall basket, adjusting at the shelf and saving on shipping/delivery fees.

Millennials are still the most likely to shop for food online (84% at least occasionally) and younger shoppers (34% of Gen Z and 40% of Millennials) tend to turn to mass stores (general merchandise retailers offering a large quantity of products at low prices) as their primary store.

Gen X (41%) and Boomers (49%) favor Supermarkets (conventional grocery stores with annual sales of two million dollars or more per store).

January – February 2023

Jan. 1 – Print New Yearly Sales & Use Tax License

Jan. 1 – Liquor Licensees – Post Updated Age to Purchase Alcohol Sign

Jan. 1 – Tobacco retailers – Post Updated Age to Purchase Tobacco Sign (optional from We Card)

Jan. 1 – Minimum Wage increases to $10.10 an hour

Jan. 1 – MRA scholarship program kicks off, apply through April 1

Jan. 15 – Open Enrollment for Individual Health Care Coverage deadline

Jan. 31 – Wage and Tax Statements/Information Returns (W-2, 1099s) give to

employees/contractors, submit to IRS/Treasury

Feb. 1 – Post MIOSHA Form 300A – Summary of Work-Related Injuries and Illnesses (if more than 11 employees) between Feb. 1 and April 30

Feb. 15 – Michigan Annual Report Due – Limited Liability Companies (LLC) and Professional Limited Liability with LARA

Feb. 28 – Michigan Sales, Use and Withholding Tax Annual Return due

Monthly reminders:

– Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.

– Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.

– Tobacco Tax Returns & Payments – Monthly – On or before the 20th day of the following month.

– Retailer’s Prepaid Wireless 911 Surcharge – within 30 days of the close of each month. Receipt of a completed Form 5012 is required regardless of payment method.

 Quarterly reminders:

– Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15th, April 15th, July 15th, Oct. 15th)

– Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month (Jan. 20th, April 20th, July 20th, Oct. 20th).