Michigan Payroll Tax and Labor Laws

Get your Michigan State Tax ID Number

Click here to obtain State Tax ID 

Click here to obtain State Unemployment Tax ID 

Michigan Wage and Hour Laws

Minimum Wage

Michigan’s minimum wage rate is currently $10.10 per hour and applies to all employers with at least 2 employees who are 16 years of age or older. 

Overtime

Michigan’s overtime law requires covered employers to pay employees at 1.5 times their regular rate of pay for hours worked over 40 in a 7-day workweek. 

Pay Frequency

In general, Michigan employers may pay employees in one of several methods: 

• Twice per month with a payment made by the 1st of the following month for all wages earned during the first 15 days of the pay period and a 2nd payment on or before the 15th of the following month for all wages earned between the 16th and 31st of the pay period 
• Weekly or biweekly pay periods are acceptable if wages are paid on an established, regularly recurring pay schedule in which the payday occurs on or before the 14th day following the end of the work period 
• Monthly payments are allowed if wages are paid on an established, regularly recurring pay schedule in which the employer pays employees all wages earned within 15 days after the end of the monthly pay period 

Michigan Unemployment

Taxable Wage Base ($000s):                                     $9,500

New Employer Rate (% Taxable Wages):                2.7% New Employer, 6.3% New Construction

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 State Resources

Michigan Department of Treasury 

Michigan Department of Labor and Economic Opportunity 

Michigan Unemployment Insurance Agency 

Michigan SUI Rate 

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. 

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs. 

Revised 1/1/2024