Can I collect unemployment if my employer has not paid the the state the unemployment taxes in Michigan?

Question

My boss has not been paying unemployment taxes, can I still collect unemployment? He is considering going bankrupt.

Answer 1

Employees who are concerned that their employer is improperly withholding or failing to withhold federal income and employment taxes should report their employer by contacting the IRS at 1-800-829-1040. In cases where the employer withheld employment taxes but failed to deposit them, or failed to issue W-2s, the employee should contact the employer to request the W-2. If the employee is unable to secure a W-2 from the employer, the employee should complete and attach Form 4852, Substitute for W-2, to their tax return using the best information available to calculate the wages and the withholding. This information can often be secured from pay stubs.


Evading employment taxes can have serious consequences for employers and the employees. Employers may be subject to criminal and civil sanctions for willfully failing to pay employment taxes. Employees suffer because they may not qualify for social security, Medicare, or unemployment benefits when employers do not report or pay employment and unemployment taxes. Consequently, taxes withheld and paid by compliant employers are used to pay the refunds and social security benefits of employees whose employers did not pay the withheld taxes.

To your original question- Yes, you can.

Answer 2

If he has filed state unemployment tax returns without payment and is getting bills you don't have to worry. If he is not filing returns, you will have to be able to establish that you had covered wages. In my state, California, an unemployment insurance claim that comes up negative generates an instant audit of the employer.

More than this, I would worry about his and your status with IRS and Social Security. The first part of your W-2 is the source document to update your Social Security account. If it doesn't get filed, your wages are not added to your lifetime total. If returns are filed, you are OK (your employer isn't, but that isn't your problem.) Make sure you keep your W-2 and compare it to the statement Social Security sends to every worker over 25.

If you are on good terms with your employer, even if he is a deadbeat, tell him to make sure he gets all his employment tax returns filed before filing bankruptcy because taxes are a priority creditor and anything due will survive bankruptcy.

Answer 3

Employer Did Not Pay

Answer 4

did he give you checks with stub or cash
if no check stub it may be hard to prove
file anyways the most that will happen is you can sue him. the state may go after him for it.

i know i guy that the company never paid any taxes for employee's for 25 years he retired and had a hard time getting SS.

Answer 5

I don't think your boss's decision can affect you.
However, you have to be unemployment( that means you are currently out of work and seeking for work) and i think you have to have a certain amount of working hours to be able to collect unemployment.

Answer 6

If you've been a W-2 employee for sufficient time and can prove it, you might be able to - go ahead and apply. If he didn't pay the taxes he was required to, they'll be going after him for them.

Good luck