Michigan New Employer Registration: Step-by-Step Guide

Last reviewed: July 2026

Hiring your first Michigan employee triggers a short list of federal and state registrations. None are difficult by themselves, but doing them out of order tends to delay your first payroll run. Here's the sequence that avoids that.

Registration Overview

Here's what every new Michigan employer needs on file before payday:

• Federal Employer Identification Number (EIN)
• Michigan withholding account (Department of Treasury)
• Michigan SUI account (Unemployment Insurance Agency)
• Workers' compensation insurance
• New hire report filed within 20 days
• A payroll system that can handle federal and state withholding together

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is the federal tax ID for your business. Apply online at IRS.gov/EIN; it's free, and the number is issued immediately once you finish the application.

Step 2: Register with Michigan Treasury

Register for a withholding account with the Michigan Department of Treasury. This lets you withhold Michigan income tax from paychecks and remit it on the schedule Treasury assigns you.

From the Payroll Desk

Register before you post a job listing, not after someone accepts an offer. Processing is usually quick, but leaving it until the week of your first payroll adds unnecessary risk.

Step 3: Register for SUI with the UIA

Register with the Unemployment Insurance Agency. You'll receive:

• An employer account number
• Your new-employer contribution rate (2.7% for most employers in 2026, 5% for construction)
• A quarterly filing schedule

SUI is charged on a taxable wage base of $9,000 per employee in 2026 ($9,500 if your account falls delinquent) and is paid entirely by the employer. See our Michigan SUI Rates 2026 guide for the full rate table.

Step 4: Workers' Compensation Insurance

Most Michigan employers must carry workers' compensation insurance once they have one or more employees. Coverage comes from a private insurance carrier, and premiums vary by industry classification and claims history, so comparing a few quotes before you buy is worth the extra hour it takes.

Step 5: New Hire Reporting

Report every new hire and rehire to the Michigan New Hire Operations Center within 20 days of the start date. This feeds the child support enforcement system and is required regardless of how many employees you have. Our Form 941 guide covers the matching federal reporting cadence once payroll is running.

Step 6: Set Up Payroll

With registrations complete, you're ready to run payroll. Use the paycheck calculator to sanity-check a sample paycheck, and hand new hires the W-4 helper so their federal and MI-W4 withholding forms come back correct the first time.

Frequently Asked Questions

Where do Michigan employers register for unemployment insurance?

Michigan employers register for a SUI account with the Unemployment Insurance Agency (UIA), part of the Department of Labor and Economic Opportunity. Registration happens online, and you'll get an employer account number and a new-employer contribution rate.

Where do Michigan employers register for state income tax withholding?

Michigan employers register for withholding with the Michigan Department of Treasury. You'll receive a withholding account number used on every deposit and return you file afterward.

Do I need to register before running my first payroll in Michigan?

Yes. Get your Treasury withholding account and your UIA unemployment insurance account set up before your first payroll, since both are needed to file and deposit state payroll taxes on time.