2025 YEAR END
Withholding
Withholding requirements
Employees must fill out Form MI W-4.
Supplemental rate
Michigan does not have a separate supplemental withholding rate. Instead, all compensation—including bonuses, commissions, and other supplemental wages—is taxed at the standard flat rate of 4.25% .
- This applies regardless of whether the payment is made separately or combined with regular wages.
- There is no adjustment for exemptions when applying this flat rate to supplemental wages.
State Unemployment Insurance (SUI)
Wage base
9,000
Contributions
- Range: 0.06% to 10.3%, depending on the employer’s experience rating and industry.
- New Employer Rate: 2.7% for most new employers.
More information
Labor
Minimum wage
$12.48
Termination Pay
- Employers must pay all wages earned and due to a terminated employee on the next regularly scheduled payday for the period in which the termination occurred.
- There is no requirement for immediate payment unless the employee was involved in hand-harvesting crops, in which case payment is due within one working day.
- No mandatory severance or notice unless specified in a contract or company policy.
More information
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- Tipped wage: $5.99/hour (48% of standard)
- Minors: $10.61/hour
- Tip credit: Employers must ensure tipped workers earn at least the full minimum wage with tips included.
New Hire Filing
Reporting deadline
Within 20 days of employee hiring.
Reporting online
Reporting by mail
Michigan New Hires Operation Center
P.O. Box 85010
Lansing, MI 48908-5010
New hire reporting form
Child Support
Online payments
More information
Coupons and payments can be mailed to:
Michigan State Disbursement Unit
P.O. Box 30351
Lansing, MI 48909-7851
Other
New employer registration
Local taxes
Albion, Battle Creek, Big Rapids, Detroit, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, and Walker
Reciprocal states
Illinois, Indiana, Kentucky, Minnesota, Ohio, andWisconsin
Disability insurance
N/A
Last Updated
09/19/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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