Payroll Michigan, Unique Aspects of Michigan Payroll Law and Practice
The Michigan State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Treasury Sales, Use and Withholding Taxes Div. Treasury Bldg. 430 W. Allegan St. Lansing, MI 48922 (517) 636-4730 http://www.michigan.gov/treasury
Michigan requires that you use Michigan form “MI-W4, Employee’s Michigan Withholding Exemption Certificate” instead of a Federal W-4 Form for Michigan State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Michigan cafeteria plans are not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.
In Michigan supplemental wages are taxed at a 3.9% flat rate.
You must file your Michigan state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.
The Michigan State Unemployment Insurance Agency is:
Bureau of Workers and Unemployment Compensation Cadillac Place 3024 W. Grand Blvd. Detroit, MI 48202 (800) 638-3994 http://www.michigan.gov/
The State of Michigan taxable wage base for unemployment purposes is wages up to $9000.00.
Michigan has optional reporting of quarterly wages on magnetic media.
Unemployment records must be retained in Michigan for a minimum period of six years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.