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Before distributing pay stubs to your employees and contractors in Michigan, it's essential to understand the relevant laws and regulations and paystub requirements in the state.

This guide provides comprehensive insights into the applicable legal requirements and regulations that Michigan employers must adhere to when managing payroll and issuing pay stubs.

michigan

Pay stub regulations in Michigan

1. Are pay stubs required by law in Michigan?

Employers in Michigan must provide their employees with pay stubs every payday.

2. How often do you need a pay stub in Michigan?

You can pay your employees either weekly, bi-weekly, semi-monthly, or monthly as there's no rules on when to schedule the payday. As pay stubs are mandatory in Michigan, you will need to provide pay stubs every time you pay your employees.

3. What information can be included on a pay stub in Michigan?

The following information must be included in employee pay stubs:

  • Employee information such as name, last 4 digits of social security number, and address
  • Employer information such as name, employer identification number (EIN), and address
  • Number of hours worked during the pay period
  • Tax Deductions
  • Any itemized deductions taken from the employee's paycheck
  • Gross wages earned
  • The dates of the pay period.

4. Does Michigan have a state income tax?

Yes, state income taxes are applicable to employees in the state of Michigan.

5. Are there any other taxes applicable to Michigan?

Yes, the following Michigan cities have local taxes: 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.

Information needed to generate pay stubs

To provide employees with accurate pay stubs, the information below is required.

  • Employee's total allowances
  • Employee's exemption status from state withholding
  • Employee's predominant place of employment and additional state withholding amount

Michigan wage and hour laws

Employers in Michigan are required to comply with wage and hour regulations to ensure that non-exempt employees receive fair compensation. This includes ensuring that employees are paid at least the minimum wage, properly compensated for overtime work, provided with adequate meal and rest breaks, and entitled to appropriate paid time-off benefits.

Michigan's employment law encompasses various regulations

  • Minimum wage
  • Overtime pay
  • Meal breaks
  • Rest breaks
  • Paid time off and leave

Michigan Minimum wage

In Michigan, businesses are legally obligated to guarantee that their employees are compensated with at least the minimum hourly wage established by statutory regulations. This requirement applies to employers with a workforce of two or more employees.

As of 2024, the basic minimum hourly rate is $10.33.

It's important to note that Michigan's state law does not encompass employment already regulated by the federal Fair Labor Standards Act unless the state minimum wage exceeds the federal rate.

Annually, the minimum wage undergoes adjustments based on a predetermined formula.

Overtime Pay

In Michigan, overtime regulations are governed by the Michigan Improved Workforce Opportunity Wage Act. This legislation closely resembles the federal Fair Labor Standards Act (FLSA) by requiring covered, nonexempt employees to be compensated at a rate of at least one and a half times their regular pay for any hours worked beyond 40 in a single workweek.

Meal break and Rest break

In Michigan, there are currently no statutory requirements mandating breaks, meal periods, or rest periods for employees.

Paid time off and leave

Employers in Washington are required to provide employees with both mandatory and optional leave benefits.

Required LeaveNon-Required leave
paidUnpaidPaid or Unpaid
Sick leave - Employees may accrue one hour of paid sick leave for every 35 hours worked.Employers may need to offer unpaid medical leave under the Family and Medical Leave Act (FMLA) or other federal laws.Vacation leave
Jury Duty leaveBereavement leave
Military leaveHoliday leave
Voting leave

Michigan State payroll taxes 2024

In Michigan, payroll taxes are typically categorized as follows:

  • Michigan Personal Income Tax(PIT)
  • Michigan State Unemployment Insurance (UI)

Michigan Personal Income Tax(PIT)

For the tax year 2024, Michigan's state personal income tax rates fluctuate based on an individual's filing status and income level, which can include Single, Married Filing Separately, Married Filing Jointly, and Head of Household.

Michigan's individual income tax rate for 2024 is set at 4.25%.

Michigan State Unemployment Insurance (UI)

Michigan State Unemployment Insurance (UI)-gov reference,gov reference Michigan enacted the State Unemployment Tax Act (SUTA) to support individuals experiencing unemployment by providing them with unemployment benefits. This legislation enables the state to collect the essential funds required to administer unemployment insurance benefits to eligible individuals during periods of job loss.

  • In 2024, Michigan' s State Unemployment Tax Act (SUTA) tax rate will range from 0.06% to 10.3%.
  • Additionally, for the year 2024, the taxable wage base for SUTA in Michigan is set at $9,500.

Michigan payroll tax filing

Report of New hire Employees

Federal law mandates that employers report all new and returning employees in Michigan to the Michigan New Hires Operation Center. This reporting must occur within 20 calendar days of the hire date. Employers utilizing electronic reporting methods can submit new hire reports in two monthly transmissions, spaced between 12 and 16 days apart. Additionally, employers obligated to provide employees with W-2 Forms must adhere to these new hire reporting obligations. Any employee receiving a W-2 Form should be reported as a new hire within 20 days of their hire date.

Report of Independent Contractors

Michigan employers are not required by law to report newly hired independent contractors, but it is encouraged and accepted practice to do so.

How to report employees and independent contractors new hire in Michigan?

OnlineMailFax
Employees and independent contractors New Hire ReportAddress Information:
Michigan New Hires
Operation Center
P.O. Box 85010
Lansing, MI 48908
Public Phone: 800-524-9846
Fax 1: 877-318-1659

Michigan personal income tax filing (Form MI-1040)

The Michigan Department of Treasury has declared that the official commencement of the 2024 tax season will be on Monday, January 29. On this date, the agency will initiate the processing of individual income tax returns.

Individuals have various options for filing their state income tax return, including online submission, utilizing a tax professional, or sending paper forms and documentation via mail. It's crucial to note that all Michigan state income tax returns and payments for any owed taxes must be received by April 15, 2024. For reporting individual income tax, individuals should use the form MI-1040.

Michigan Employer's Quarterly Wage/Tax Reports(Form UIA 1028)

Employers must submit Employer's Quarterly Wage/Tax Reports(Form UIA 1028) to the UIA (Unemployment Insurance Agency) detailing their employees and the wages earned for each quarter. Even if there are no employees or wages to report, a quarterly report must still be filed. Failure to submit reports and payments promptly will lead to penalties and interest being applied to the account.

It's important to note that the Employer's Wage/Tax Reports must be filed online through the employer's MIWAM (Michigan Web Account Manager) account.

Reporting PeriodDue Date
Quarter 1April 25
Quarter 2July 25
Quarter 3October 25
Quarter 4January 25

Have all the information handy?

With SecurePayStubs, you can calculate accurate federal and Michigan state taxes for your employees and generate pay stubs securely.

Create a paystub now

Processing payroll manually is complex

As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.

With SecurePayStubs, paystub generator, you can quickly produce pay stubs for your employees and independent contractors. This tool ensures accurate calculations for federal and Michigan state taxes, all accomplished in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.

Spend less time generating pay stubs and more on your business growth.

Create a paystub now

This article has been updated from its original publication date of April 9, 2024.