Michigan Payroll Tax and Labor Laws

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Did you know that Michigan repealed it's Single Business Tax (SBT) and approved a Michigan Business Tax (MBT) that has reduced taxes for seventy percent of Michigan businesses?

Michigan Wage and Hour Laws

Employees covered by Michigan's minimum wage law must be paid $9.65 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 for Employers

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 or 9,500

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New Employer Rate (% Taxable Wages)    2.7 or 6.3

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 Hours         No

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Pay Deduction for Voting Time Leave                 No


Michigan does not have a voting time leave law.

Michigan State Tax Resources