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Michigan Unemployment Insurance Agency Changes Process for Filing & Recording Discharge of Liens

07.10.2016 by Law Firm of Seglund Gabe Pawlak & Groth in Legal Updates, Tax Information

The Michigan Unemployment Insurance Agency (UIA) is changing its processes for filing and discharging real property liens filed against delinquent employer accounts beginning October 1, 2016. The new process is a result of two new statutes, Public Acts 224 and 228 of 2016.

UIA may file a lien against an employer’s real property if outstanding debt remains unpaid after several attempts to collect.

In the past, when the employer has satisfied the debt which resulted in a lien filing, that employer would receive a notice of lien discharge letter from the UIA. The UIA records that lien with the Register of Deeds office in the appropriate county and, in the past, would record the discharge when the debt was fully paid.

Prior to the law change, the UIA paid the lien discharge fee.

As a result of the new law, it is the employer’s responsibility to file (record) the discharge and pay the applicable fee to the county in which the lien is recorded. The lien discharge fee is $30. In addition to the $30 lien discharge fee, the employer is now responsible for the cost of recording the lien.

Under a different statute, the minimum recording fee for any document in the register of deeds offices was increased to $30 beginning October 1, 2016.

This means that, if the lien was filed before October 1, 2016, then the lien recording fee is $2. In this instance the employer’s payment to the county when recording the discharge would be $32.

Accordingly, if the lien was filed on or after October 1, 2016, it means the UIA paid $30 to record that lien. This means the employer would need to remit $60 to the county Register of Deeds office to file the lien discharge.

The amount due can be found on the Certificate of Discharge (Form UIA 1450).  Contact the county Registrar of Deeds office to determine the most efficient way to file and record the discharge.

When filing (recording) a lien discharge, employers will need to have their Certificate of Discharge along with their payment for the recording fees.

For more information, contact the UIA’s Office of Employer Ombudsman at 1-855-4UIAOEO (1-855-484-2636) or oeo@michigan.gov.

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