Michigan New Employer Information
Congratulations on your decision to become a new employer in Michigan! You will need a few things in place before you run your first payroll.
For help registering your business in Michigan, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online. You will need to have this account to make tax payments online, or view payments made on your behalf by Patriot.
- To find out more about the EFTPS, please read our article, “What is EFTPS?”
State of Michigan Tax Accounts:
- You can register your business online using e-Registration. Using this application you will be able to create accounts with the Department of Treasury for all State Income Taxes (SIT) and the Michigan Unemployment Insurance Agency for State Unemployment Taxes (SUI). Please note: you must have an FEIN, (Federal employer identification number) before you can register with the state of Michigan.
- The new employer State Unemployment Tax Assessment (SUTA) rate for Michigan is 2.7%. New Employers in Michigan will keep this State Unemployment Tax Assessment (SUTA) rate for 2 years.
- Online reporting for SUTA taxes is mandatory. Employers will need to create a Michigan Web Account Manager (MiWAM) account.
- To learn more about SUTA, please read our article, “What is SUTA Tax?”
- Employers in these localities must register with local tax agencies: Albion, Battle Creek, Benton Harbor, Big Rapids, Detroit, East Lansing, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, and Walker.
- For more more information please visit the Michigan Department of Treasury.
State-mandated Insurance:
- You must have workers’ comp insurance if you have at least 1 employee in Michigan. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Michigan here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
Setting Up Your New Employee:
- The Michigan minimum wage is $10.56/hour from January 1 – February 20, 2025. Beginning February 21, 2025, the minimum hourly wage will be $12.48/hour.
- You need to post the minimum wage poster for Michigan where employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for Michigan new employers. Please visit government websites for further information.
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