| The Michigan State Agency that oversees the | | | | by mail, fax or electronically. |
| collection and reporting of State income taxes | | | | There is no penalty for a late report in Michigan.The |
| deducted from payroll checks is:Department of | | | | Michigan new hire-reporting agency can be reached at |
| Treasury | | | | 800-524-9846 or on the web at does not allow |
| Sales, Use and Withholding Taxes Div. | | | | compulsory direct depositMichigan requires the |
| Treasury Bldg. | | | | following information on an employee's pay stub:Gross |
| 430 W. Allegan St. | | | | and Net Earnings |
| Lansing, MI 48922 | | | | straight time and overtime pay |
| (517) 636-4730 | | | | pay periods |
| requires that you use Michigan form "MI-W4, | | | | hours worked |
| Employee's Michigan Withholding Exemption | | | | itemized deductionsMichigan requires that employee |
| Certificate" instead of a Federal W-4 Form for | | | | be paid semimonthly; monthly if wages paid by 1st of |
| Michigan State Income Tax Withholding.Not all states | | | | next month; weekly or biweekly if paydays regularly |
| allow salary reductions made under Section 125 | | | | scheduled.Michigan requires that the lag time between |
| cafeteria plans or 401(k) to be treated in the same | | | | the end of the pay period and the payment of wages |
| manner as the IRS code allows. In Michigan cafeteria | | | | earned from 1st-15th, pay by 1st of next month; |
| plans are not taxable for income tax calculation; | | | | 16th-end of month, pay by 15th of next month; 14 days |
| taxable for unemployment insurance purposes. 401(k) | | | | after pay period for weekly or biweekly paydays to |
| plan deferrals are not taxable for income taxes; | | | | the employee.Michigan payroll law requires that |
| taxable for unemployment purposes.In Michigan | | | | involuntarily terminated employees must be paid their |
| supplemental wages are taxed at a 3.9% flat rate.You | | | | final pay immediately, or as soon as amount due is |
| must file your Michigan state W-2s by magnetic media | | | | determined and that voluntarily terminated employees |
| if you are have at least 250 employees and are | | | | must be paid their final pay when amount is |
| required to file your federal W-2s by magnetic | | | | determined.Deceased employee's wages must be |
| media.The Michigan State Unemployment Insurance | | | | paid when normally due to employee's written |
| Agency is:Bureau of Workers and Unemployment | | | | designee; if none, surviving spouse, children, parents, or |
| Compensation | | | | siblings (in that order).Escheat laws in Michigan require |
| Cadillac Place | | | | that unclaimed wages be paid over to the state after |
| 3024 W. Grand Blvd. | | | | one year if more than $50.The employer is further |
| Detroit, MI 48202 | | | | required in Michigan to keep a record of the wages |
| (800) 638-3994 | | | | abandoned and turned over to the state for a period |
| State of Michigan taxable wage base for | | | | of 10 years.Michigan payroll law mandates no more |
| unemployment purposes is wages up to | | | | than $2.50 may be used as a tip credit.In the Michigan |
| $9000.00.Michigan has optional reporting of quarterly | | | | payroll law there is no provision covering required rest |
| wages on magnetic media.Unemployment records | | | | or meal periods.Michigan statute requires that wage |
| must be retained in Michigan for a minimum period of | | | | and hour records be kept for a period of not less than |
| six years. This information generally includes: name; | | | | three years. These records will normally consist of at |
| social security number; dates of hire, rehire and | | | | least the information required under FLSA.The Michigan |
| termination; wages by period; payroll pay periods and | | | | agency charged with enforcing Child Support Orders |
| pay dates; date and circumstances of termination.The | | | | and laws is:Office of Child Support |
| Michigan State Agency charged with enforcing the | | | | Michigan Family Independence Agency |
| state wage and hour laws is:Department of Consumer | | | | 235 S. Grand Ave., Ste. 1406 |
| and Industry Services | | | | Lansing, MI 48933 |
| Bureau of Safety and Regulation | | | | (517) 373-7570 |
| Wage and Hour Division | | | | has the following provisions for child support |
| 7150 Harris Dr., Box 30643 | | | | deductions:When to start Withholding? 7 days after |
| Lansing, MI 48909-8143 | | | | service. |
| (517) 322-1825 | | | | When to send Payment? Within 3 days of Payday. |
| minimum wage in Michigan is $5.15 per hour.The | | | | When to send Termination Notice? "Promptly" |
| general provision in Michigan concerning paying | | | | Maximum Administrative Fee? no provision |
| overtime in a non-FLSA covered employer is one and | | | | Withholding Limits? Federal Rules under CCPA. |
| one half times regular rate after 40-hour | | | | Please note that this article is not updated for |
| week.Michigan State new hire reporting requirements | | | | changes that can and will happen from time to |
| are that every employer must report every new hire | | | | time.Charles J. Read, CPA has been in the payroll, |
| and rehire. The employer must report the federally | | | | accounting and tax business for 30 years, the last |
| required elements of:Employee's name | | | | fifteen in private practice. Mr. Read is the author of |
| Employee's address | | | | "How to Start a New Business".For Professional |
| Employee's social security number | | | | Payroll services at a Budget Price go to a Paperless |
| Employer's name | | | | Payroll Company.Go to For a full service payroll |
| Employers address | | | | service bureau with CPA's on staff.See an excerpt of |
| Employer's Federal Employer Identification Number | | | | Mr. Read's interviews from William Shatners |
| (EIN) This information must be reported within 20 days | | | | "Heartbeat of America" television show on the |
| of the hiring or rehiring. | | | | websites linked above. |
| The information can be sent as a W4 or equivalent | | | | |