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Michigan Payroll

Did you know that Michigan repealed its Single Business Tax (SBT) and approved a Michigan Business Tax (MBT) that has reduced taxes for seventy percent of Michigan businesses?

Michigan Compensation

Employees covered by Michigan's minimum wage law must be paid $7.40 an hour.


All employees of employers with two or more employees within a calendar year are covered except for:

  • those exempt from the Fair Labor Standards Act, except for certain domestic service
    employees (see below),
  • those under 18 or over 64 years of age,
  • employees of summer camps working for up to four months,
  • employees of fruit, pickle or tomato growers, and
  • other agricultural workers contracting for harvest on a piecework basis.

Michigan Payroll

Employers covered by Michigan's wage payment law must pay wages at least twice in a calendar month. Payment must be made on the first day of the month for wages earned the first 15 days of the preceding month and on the 15th day of the month for wages earned from the 16th day to the last day of the preceding month. All employees are covered.


Michigan Unemployment:
Taxable Wage Base ($000s)9,000
New Employer Rate (% Taxable Wages)2.7 - 8.4
Employee Tax Rate (% Taxable Wages)None
Period EffectiveCalendar Year 2011

Michigan Payroll Links

Michigan Department of Treasury >>
430 W. Allegan Street
Lansing, Michigan 48922
517.373.3200
Michgan Department of Labor and Economic Growth >>
PO Box 30476
Lansing, Michigan 48909
517.322.1825
Department of Labor and Economic Growth - Unemployment Insurance Agency >>
Cadillac Place
3024 W. Grand Blvd.
Detroit, Michigan 48202
313.456.2400
Michigan Laws >>
Michigan State Regulations >> Tax Forms and Publications >>

Michigan Income Tax Withholding

Michigan requires employers to withhold state income tax from employees' wages and remit the amounts withheld to the Department of the Treasury.

Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. Michigan employers are not required to withhold Michigan income tax from compensation earned in Michigan by residents of those states.

Other out-of-state employers that have employees who work in Michigan must register with the state Treasury Department and withhold Michigan income tax from all employees working within the state.


Michigan Benefits

Michigan Voting Rights:
Employer Right to Schedule Voting HoursNo
Pay Deduction for Voting Time LeaveNo

Michigan does not have a voting time leave law.

Michigan Payroll Calculator

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Follow the link to learn more about calculating payroll tax where there are definitions and further explanation of how to calculate Michigan payroll taxes. If you are tired of doing it yourself we encourage you to call 877.954.7873 to speak with a payroll expert or just get a free personalized payroll service quote.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.