Michigan Administrative Code › Department - Labor and Economic Opportunity › Unemployment Insurance Agency › Employment Security › Part 2 - EMPLOYERS › Section R. 421.112 - Determination of cash value of room and board

Current through Vol. 24-12, July 15, 2024
Rule 112.
(1) If
				  board, rent, housing, lodging, meals, or similar advantage is extended in any
				  medium other than cash as partial or entire remuneration for service
				  constituting "employment" as defined in section 42 of 1936 PA 1, MCL 421.42,
				  then the reasonable cash value of the board, rent, housing, lodging, meals, or
				  similar advantage is wages unless the board, rent, housing, lodging, meals, or
				  similar advantage is furnished solely for the convenience of the employer.
				  However, for purposes of this rule, payments in any medium other than cash
				  shall not apply to agricultural or domestic service, except for purposes of
				  subrule (7) of this rule.
(2) If
				  the cash value for the board, rent, housing, lodging, meals, or similar
				  advantage is agreed upon in any contract of hire, then the amount agreed upon
				  is the value of the board, rent, housing, lodging, meals, or similar advantage.
				  Check stubs, pay envelopes, and other documents which are furnished to
				  employees and which set forth cash value are acceptable as evidence as to the
				  amount of the cash value agreed upon in any contract of hire, except as
				  provided in subrules (4) and (6) of this rule.
(3) If the cash value for board, rent,
				  housing, lodging, meals, or similar advantage is not agreed upon in a contract
				  of hire, then the rate for board, rent, housing, lodging, meals, or similar
				  advantage furnished in addition to money wages or wholly comprising the wages
				  of an employed individual shall have the following cash value, except as
				  provided in subrules (4) and (6) of this rule:Full board and room, per week
				  ........... $64.96 Meals without lodging, per week ......... 44.66 Meals
				  without lodging, per day .......... 7.45 Meals without lodging, per meal
				  ......... 2.29 Lodging without meals, per week .......... 20.87 Lodging without
				  meals, per day ........... 3.22 However, if lodging is furnished, for example,
				  to superintendents of properties, caretakers, and janitors, then the value of
				  the lodging shall be the amount that would be paid by an employee for similar
				  or equivalent accommodations furnished by an individual other than his or her
				  employer.
(4) At the request of any
				  employer or employee or on its own motion, the agency or its authorized agent,
				  may after the expiration of a 1-year period from the effective date of this
				  rule and after affording reasonable opportunity at a hearing for the submission
				  of relevant information in writing or in person, determine the reasonable cash
				  value of board, rent, housing, lodging, meals, or similar advantage in a
				  particular instance or in a group of instances if it is determined that the
				  values fixed in, or arrived at, under subrule (3) of this rule or in the
				  contract of hire do not properly reflect the reasonable cash value of the
				  remuneration.
(5) The agency shall
				  adjust the cash values in subrule (3) of this rule annually on March 1, based
				  on a comparison of the United States department of labor, bureau of labor
				  statistics, consumer price index for urban wage earners and clerical workers
				  for Detroit-Ann Arbor, Michigan, for the preceding December with the
				  corresponding United States department of labor, bureau of labor statistics,
				  consumer price index for urban wage earners and clerical workers for
				  Detroit-Ann Arbor, Michigan, for the December preceding that
				  December.
(6) Except as provided in
				  subrule (4) of this rule, if the agency determines that the reasonable cash
				  value of board, rent, housing, lodging, meals, or similar advantage is other
				  than as prescribed in a contract of hire or in subrule (3) of this rule, then
				  the employer's payroll and contribution reports to the agency shall show the
				  value of the remuneration as determined by the agency.
(7) For the purpose of determining whether an
				  individual is "unemployed" as defined in section 481936 PA 1, MCL 421.48, the
				  reasonable cash value of board, rent, housing, lodging, meals, or similar
				  advantage as compensation for personal services shall also be established
				  pursuant to this rule.