Payroll Michigan, Unique Aspects of Michigan Payroll Law and Practice

The Michigan State Agency that oversees theby mail, fax or electronically.
collection and reporting of State income taxesThere is no penalty for a late report in Michigan.The
deducted from payroll checks is:Department ofMichigan new hire-reporting agency can be reached at
Treasury800-524-9846 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
430 W. Allegan St.stub:Gross and Net Earnings
Lansing, MI 48922straight time and overtime pay
(517) 636-4730pay periods
requires that you use Michigan form "MI-W4,hours worked
Employee's Michigan Withholding Exemptionitemized deductionsMichigan requires that employee
Certificate" instead of a Federal W-4 Form forbe paid semimonthly; monthly if wages paid by 1st of
Michigan State Income Tax Withholding.Not all statesnext month; weekly or biweekly if paydays regularly
allow salary reductions made under Section 125scheduled.Michigan requires that the lag time between
cafeteria plans or 401(k) to be treated in the samethe end of the pay period and the payment of
manner as the IRS code allows. In Michigan cafeteriawages earned from 1st-15th, pay by 1st of next
plans are not taxable for income tax calculation;month; 16th-end of month, pay by 15th of next
taxable for unemployment insurance purposes. 401(k)month; 14 days after pay period for weekly or
plan deferrals are not taxable for income taxes;biweekly paydays to the employee.Michigan payroll
taxable for unemployment purposes.In Michiganlaw requires that involuntarily terminated employees
supplemental wages are taxed at a 3.9% flatmust be paid their final pay immediately, or as soon
rate.You must file your Michigan state W-2s byas amount due is determined and that voluntarily
magnetic media if you are have at least 250terminated employees must be paid their final pay
employees and are required to file your federal W-2swhen amount is determined.Deceased employee's
by magnetic media.The Michigan State Unemploymentwages must be paid when normally due to
Insurance Agency is:Bureau of Workers andemployee's written designee; if none, surviving
Unemploymentspouse, children, parents, or siblings (in that
Compensationorder).Escheat laws in Michigan require that unclaimed
Cadillac Placewages be paid over to the state after one year if
3024 W. Grand Blvd.more than $50.The employer is further required in
Detroit, MI 48202Michigan to keep a record of the wages abandoned
(800) 638-3994and turned over to the state for a period of 10
State of Michigan taxable wage base foryears.Michigan payroll law mandates no more than
unemployment purposes is wages up to$2.50 may be used as a tip credit.In the Michigan
$9000.00.Michigan has optional reporting of quarterlypayroll law there is no provision covering required rest
wages on magnetic media.Unemployment recordsor meal periods.Michigan statute requires that wage
must be retained in Michigan for a minimum period ofand hour records be kept for a period of not less
six years. This information generally includes: name;than three years. These records will normally consist
social security number; dates of hire, rehire andof at least the information required under FLSA.The
termination; wages by period; payroll pay periods andMichigan agency charged with enforcing Child Support
pay dates; date and circumstances of termination.TheOrders and laws is:Office of Child Support
Michigan State Agency charged with enforcing theMichigan Family Independence Agency
state wage and hour laws is:Department of235 S. Grand Ave., Ste. 1406
Consumer and Industry ServicesLansing, MI 48933
Bureau of Safety and Regulation(517) 373-7570
Wage and Hour Divisionhas the following provisions for child support
7150 Harris Dr., Box 30643deductions:When to start Withholding? 7 days after
Lansing, MI 48909-8143service.
(517) 322-1825When to send Payment? Within 3 days of Payday.
minimum wage in Michigan is $5.15 per hour.TheWhen to send Termination Notice? "Promptly"
general provision in Michigan concerning payingMaximum Administrative Fee? no provision
overtime in a non-FLSA covered employer is one andWithholding Limits? Federal Rules under CCPA.
one half times regular rate after 40-hourPlease note that this article is not updated for
week.Michigan State new hire reporting requirementschanges that can and will happen from time to
are that every employer must report every new hiretime.Charles J. Read, CPA has been in the payroll,
and rehire. The employer must report the federallyaccounting and tax business for 30 years, the last
required elements of:Employee's namefifteen in private practice. Mr. Read is the author of
Employee's address"How to Start a New Business".For Professional
Employee's social security numberPayroll services at a Budget Price go to a Paperless
Employer's namePayroll Company.Go to For a full service payroll
Employers addressservice bureau with CPA's on staff.See an excerpt of
Employer's Federal Employer Identification NumberMr. Read's interviews from William Shatners
(EIN) This information must be reported within 20"Heartbeat of America" television show on the
days of the hiring or rehiring.websites linked above.
The information can be sent as a W4 or equivalent