State RegulationsMI specificDifficulty 2/5
Effective January 1, 2018, Michigan revised its small-employer definition. Which range applies under current Michigan law, replacing the former 2 to 50 range?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.3701(q) now defines a small employer as an entity with 1 to 50 full-time-equivalent employees; the change took effect January 1, 2018, replacing the former 2 to 50 range. Using the outdated 2 to 50 range would wrongly exclude one-person businesses that Michigan law now recognizes as small employers.
Why the other options are wrong
- B) 2 to 50 is the superseded pre-2018 definition, not current law.
- C) 10 to 100 matches no Michigan small-employer band in M.C.L. 500.3701(q).
- D) 20 to 75 borrows unrelated thresholds; neither figure defines Michigan small employers.
Memory hook
Since January 1, 2018: small means 1 to 50.