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Taxes
Michigan Payroll Taxes 2026: Complete Overview for Employers
Michigan flat 4.25% (+ some city taxes) income tax, SUI on $9,500, and all employer obligations.
Practical, accurate resources for Michigan small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Michigan flat 4.25% (+ some city taxes) income tax, SUI on $9,500, and all employer obligations.
How to register with Michigan Department of Treasury and Michigan Department of Labor and Economic Opportunity as a new Michigan employer.
New employer rate 2.7%, experienced range 0.06%–10.30%, wage base $9,500.
Michigan minimum wage is $10.56/hr. Michigan’s minimum wage is $10.56/hr. Tipped employees may be paid $4.01/hr.
Semi-monthly or monthly pay required. Final pay: Final wages are due as soon as the amount can be determined with due diligence..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Michigan-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Michigan new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Michigan recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Michigan small businesses.
Federal OT after 40 hrs/week, Michigan overtime rules, exemptions, salary thresholds.