Visory
US
Book a discovery call Book a call

Payroll in Michigan

Payroll services for Michigan businesses.

Visory provides payroll services for Michigan businesses with staff across the state. A dedicated Payroll Specialist runs each pay run remotely in your own payroll platform, handling state and city withholding, earned sick time accruals, and the report every new hire needs. Delphi AI takes the repetitive parts, overseen by the team. You approve each run before anyone is paid. One flat monthly fee.

  • A dedicated team you know by name
  • Michigan rules in every pay run and close
  • One flat monthly fee for the agreed scope
Book a discovery call
Detroit’s riverfront skyline, with the Renaissance Center and the Penobscot Building, across the Detroit River on a clear afternoon.
Photo: GV Chana, Unsplash License

Payroll in Michigan

What every Michigan pay run covers.

A dedicated team prepares each pay run, checks it, and sends it to you to approve before anyone is paid. Six things are right every time.

  • Withholding, every run Federal withholding, and state and local taxes where they apply, worked out in every run from each employee’s own forms.
  • Filed on schedule Quarterly and annual payroll tax filings prepared from the same runs and filed on schedule by your payroll platform, so nothing is rebuilt at the deadline.
  • Unemployment insurance Michigan contributions worked out on each employee’s wages, up to the state’s taxable wage base.
  • Leave that adds up Paid leave accrued in the file to the state’s rules, so balances are right when someone asks.
  • Paid on the right day Pay frequency and final pay set to the state’s rules, and every run approved by you before anyone is paid.
  • New hires, set up properly New employees reported to the state and set up before their first pay run.

Michigan rules

The Michigan rules every pay run works to.

Seven rules set by Michigan, each with the law that sets it and what it does to your month. Your team works to them every pay run and every close.

One return carries three taxes.

Withholding, sales tax, and use tax share a filing frequency, so payroll and the sales ledger are closed on the same calendar and the annual return has to agree with every period filed during the year.

Set by Michigan Income Tax Act, MCL 206.51; Form 446 (Rev. 02-26)

Employers withhold Michigan income tax at 4.25% of compensation after deducting the personal and dependency exemption allowance, set at $5,900 for 2026 and claimed on Form MI-W4. Bonuses paid separately from regular payroll are withheld at a flat 4.25%. Withholding is reported with sales and use tax on one combined return, filed monthly or quarterly by the 20th, as Treasury assigns, and every filer also submits an annual return by February 28.

Michigan Income Tax Act, MCL 206.51; Form 446 (Rev. 02-26); 4.25% rate for the 2026 tax year.

Sources Michigan Department of Treasury: Form 446, 2026 Michigan Income Tax Withholding Guide Michigan Department of Treasury: 4.25% income tax rate for individuals and fiduciaries in 2026 tax year Michigan Department of Treasury: Filing frequency for sales, use, and withholding taxes

Good standing lowers the bill.

A missed report or a small unpaid balance moves every employee onto the $9,500 wage base, so reports and payments are reconciled each quarter, and the cost lands early in the year because it stops at the wage base.

Set by Michigan Employment Security Act

New contributing employers pay 2.7% in their first two years, except certain construction employers. In 2026 the rate applies to the first $9,000 of each employee’s wages for employers in good standing, meaning every quarterly report filed and no unpaid balance of $25 or more; other employers are taxed on the first $9,500. Quarterly wage and tax reports are due April 25, July 25, October 25, and January 25.

Michigan Employment Security Act; taxable wage base for 2026.

Sources Michigan Unemployment Insurance Agency: Tax rates and liability FAQ Michigan Unemployment Insurance Agency: Michigan Employer Advisor, November 2025 (taxable wage base for 2026) Michigan Unemployment Insurance Agency: Unemployment tax rate

The floor rises again in January.

The step to $15.00 lifts the cost of every hourly role paid near the minimum, so pay rates in the payroll file are reviewed before the first pay run of 2027, not after it.

Set by Improved Workforce Opportunity Wage Act, Public Act 337 of 2018

Michigan’s minimum wage rose from $12.48 to $13.73 an hour on January 1, 2026, and the Department of Labor and Economic Opportunity lists $15.00 from January 1, 2027. Tipped employees may be paid $5.49 an hour, 40% of the minimum wage, provided they receive at least $8.24 in tips, and minors aged 16 and 17 may be paid 85% of the minimum wage, $11.67 an hour.

Improved Workforce Opportunity Wage Act, Public Act 337 of 2018; rates from January 1, 2026; $15.00 from January 1, 2027.

Sources Michigan Department of Labor and Economic Opportunity: Minimum wage and overtime Michigan Department of Labor and Economic Opportunity: Michigan’s minimum wage set to increase on Jan. 1, 2026

One rate, wherever you sell.

With no local sales tax, a business that sells goods charges 6% across the state, and the books hold the tax collected apart until the return Treasury has assigned is due.

Set by General Sales Tax Act, Act 167 of 1933

Michigan’s 6% sales tax applies to retail sales of tangible personal property, and the companion 6% use tax also reaches certain services, such as telecommunications and hotel accommodations. Michigan does not allow cities or other local units to impose a sales or use tax. Treasury assigns each business a monthly, quarterly, or annual filing frequency: monthly and quarterly returns are due by the 20th, and every filer submits an annual return by February 28.

General Sales Tax Act, Act 167 of 1933.

Sources Michigan Department of Treasury: Filing frequency for sales, use, and withholding taxes Michigan Department of Treasury: Sales and use taxes

The 11th employee changes the limit.

Every employee in the United States counts toward the small business test, so a business that grows past 10 employees for 20 workweeks moves to the 72-hour limit, and the payroll file tracks headcount as well as hours.

Set by Michigan Earned Sick Time Act

Employees accrue at least one hour of paid earned sick time for every 30 hours worked. Employers with 11 or more employees may limit use to 72 hours a year, and small businesses with 10 or fewer to 40 hours. Accrual began February 21, 2025, and for small businesses October 1, 2025. Employers using accrual may ask new hires to wait until their 120th calendar day to use it, and unused hours carry over up to the same limits.

Michigan Earned Sick Time Act; from February 21, 2025; small businesses from October 1, 2025.

Source Michigan Department of Labor and Economic Opportunity: Earned Sick Time Act FAQ

Final pay cannot wait for the cycle.

Michigan ties a leaver’s pay to when the amount can be worked out, not to the next payday, so hours and commissions owed are ready when someone gives notice or is let go.

Set by Payment of Wages and Fringe Benefits Act, MCL 408.472 and 408.475

Wages earned in the first 15 days of a month are due by the 1st of the next month, and wages for the rest of the month by the 15th. A regular weekly or biweekly payday complies if it falls within 14 days of the end of the work period, and a monthly payroll if wages are paid within 15 days of the month’s end. Final wages, on resignation or discharge, are due as soon as the amount can be determined.

Payment of Wages and Fringe Benefits Act, MCL 408.472 and 408.475; Act 390 of 1978, in force from August 1, 1978.

Sources Michigan Legislature: Payment of Wages and Fringe Benefits Act, Act 390 of 1978 (including MCL 408.472) Michigan Legislature: MCL 408.475, payment of wages on leaving employment

Two forms on day one.

The new-hire report and the MI-W4 draw on the same setup as the first pay run, so both are done the day someone is added to the payroll file, before any tax is withheld.

Set by Federal new hire reporting law, 42 USC 653A; Form 446 (Rev. 02-26)

Employers report every new and returning employee working in Michigan within 20 calendar days after the date of hire to the Michigan New Hires Operation Center, part of the Michigan Child Support Program. Reports can be made online or on New Hire Reporting Form 3281. Every employee also completes a Michigan withholding certificate, Form MI-W4; the federal W-4 cannot be used in its place.

Federal new hire reporting law, 42 USC 653A; Form 446 (Rev. 02-26).

Sources Michigan Department of Treasury: Form 446, 2026 Michigan Income Tax Withholding Guide Michigan Child Support Program: Michigan New Hires Operation Center, new hire reporting requirements and FAQs US Office of Child Support Services: New hire reporting

Rules last checked October 9, 2026 against the sources at the foot of this page. General information only. It does not take your circumstances into account.

Local rules

Where the rules change across Michigan.

Your team applies the local rules as well as the Michigan ones. These are the places where a local tax, a wage rate, or a leave law differs from the rest of the state.

The orange brick and tile crown of the Guardian Building in downtown Detroit, lit by low sun against a cloudy sky.
Photo: WMrapids, CC0

Detroit

Detroit taxes residents’ wages at 2.4% and nonresidents who work there at 1.2%, with withholding run by the state Treasury.

  • Employers with a location in Detroit, or doing business there, withhold city tax from all compensation of Detroit residents, wherever they work, and from nonresidents whose predominant place of employment is Detroit.
  • The rates are 2.4% for residents and 1.2% for nonresidents, after an exemption of $600 a year for each exemption claimed on Form 5527, the Detroit withholding certificate.
  • The Michigan Department of Treasury administers Detroit withholding: Form 5323 is due by the 15th of the month after the tax is withheld, even with nothing owed, with an annual reconciliation on Form 5321.
Downtown Grand Rapids and a bridge over the Grand River on a clear day.
Photo: Ad Telic, Unsplash License

Grand Rapids

Grand Rapids taxes residents at 1.5% and nonresidents who work in the city at 0.75%, through its own Income Tax Department.

  • Employers with a location in Grand Rapids, or doing business there, withhold from employees who live or work in the city, at 1.5% for residents and 0.75% for nonresidents, the rates since July 1, 2010.
  • Withholding is paid monthly once it exceeds $100 a month, and quarterly below that, with each payment due on the last day of the month after the period.
  • A nonprofit organization withholds Grand Rapids tax from its employees too, even if the organization itself is exempt from income taxes.

Other Michigan cities

Twenty-two more Michigan cities levy an income tax, most at 1% for residents and 0.5% for nonresidents, each run by the city itself.

  • Lansing, East Lansing, Flint, Jackson, Battle Creek, and Muskegon are among the cities taxing residents at 1% and nonresidents at 0.5%.
  • Saginaw and Highland Park are higher: Saginaw at 1.5% for residents and 0.75% for nonresidents, and Highland Park at 2% and 1%. Each of these cities sets its own forms, filing, and payment requirements, separate from the state’s combined return.
  • From January 1, 2027, the Michigan Department of Treasury administers Flint’s city income tax.

How it works from anywhere

Can a team outside Michigan run a Michigan business?

Yes. Visory’s US leadership team is in New York, and its teams work with businesses across the United States remotely, inside your own accounting file, so nothing about the work depends on where your office is.

Your own file

Your books stay in your own QuickBooks or Xero file. Your team works inside it, so you see the same numbers they do, whenever you look.

A team you know by name

A dedicated team runs the work, led by a Business Performance Partner. You meet them by video call, and you always know who to ask.

Michigan rules, built in

Visory runs the finance function for growing businesses across the United States, with its US leadership team in New York. Your books stay in your own QuickBooks or Xero file and your pay runs in your own payroll platform, and your team works inside them with you. Every pay run and every close is checked against the rules on this page.

Business hours, and the platform after them

Your team works 9am to 5pm Eastern Time on business days, all year round, and the Visory platform is open to you around the clock for documents, approvals, and your numbers.

What we run for Michigan businesses

The whole finance function, actually handled.

Bookkeeping, payroll, accounts payable, and accounts receivable, run end to end by a dedicated team with Delphi AI working under their oversight. Flat monthly fee. No hourly billing.

Bookkeeping

Every transaction coded and reconciled, month-end closed on schedule.

Explore bookkeeping

Payroll

Pay runs prepared, checked, and paid on time, every cycle.

See how payroll runs

Accounts payable

Bills captured, checked against what's already paid, and paid when you say so.

See accounts payable

Accounts receivable

Invoices out on schedule, overdue accounts followed up in your name.

See accounts receivable

Visory Insights

Once a month: what changed, what it means, and what to do next.

See how Insights works

Business Performance Partner

A named partner who walks you through the numbers and the next move.

How your partner works

Bookkeeping services in Michigan

What customers say

In a customer’s words.

“I have enough people to manage, so it's nice having a partner that ensures nothing is missed when it comes to the very important process of remunerating our people.”

Rachelle Harper Co-founder and COO, BrandBossHQ

Common questions

Questions Michigan businesses ask.

Straight answers about payroll for a Michigan business, from a team that works remotely.

What does a Visory pay run for a Michigan business include?

Your Payroll Specialist runs each pay run, with Delphi AI preparing and checking it in the background, and you approve it before anyone is paid. The Payroll Specialist handles new hires, leave, changes, and terminations, applies Michigan and city withholding where each applies, and posts the run to your books, so wages, deductions, and earned sick time balances agree every month.

What hours does my payroll team work?

Your payroll team works 9am to 5pm Eastern Time on business days, all year round. Outside those hours, the Visory platform is your 24/7 access point, so your payroll information is there whenever you need it.

How often do I have to pay employees in Michigan?

Wages for the first half of a month are due by the 1st of the next month and the rest by the 15th, or you can set a regular weekly or biweekly payday within 14 days of the end of each work period. Final pay is due as soon as the amount can be determined. This is general information; the Department of Labor and Economic Opportunity enforces the rules.

How much earned sick time do Michigan employees get?

Employees accrue at least one hour for every 30 hours worked. Employers with 11 or more employees may limit use to 72 hours a year, and small businesses with 10 or fewer to 40 hours, with unused hours carrying over up to the same limits. Your Payroll Specialist tracks accruals in every pay run. This is general information; the Department of Labor and Economic Opportunity sets the rules.

What do I have to do when I hire someone in Michigan?

Report the new employee to the Michigan New Hires Operation Center within 20 calendar days of the date of hire, and have them complete Form MI-W4, Michigan’s own withholding certificate, because the federal W-4 cannot be used in its place. If you withhold Detroit tax, each employee also completes Form 5527, the city’s certificate. Your Payroll Specialist does all of this before the first pay run.

What is the Michigan unemployment insurance wage base in 2026?

Employers in good standing pay on the first $9,000 of each employee’s wages in 2026, and others on the first $9,500. New employers pay 2.7% in their first two years, and quarterly wage and tax reports are due on the 25th of the month after each quarter. Your Payroll Specialist prepares each report from the same pay runs, so the account stays in good standing.

What is the Michigan income tax withholding rate in 2026?

Employers withhold 4.25% of compensation after deducting an exemption allowance of $5,900 for each exemption claimed on Form MI-W4. Bonuses paid separately from regular payroll are withheld at a flat 4.25%, with no adjustment for exemptions. Withholding is reported with sales and use tax on one combined return, filed monthly or quarterly by the 20th as Treasury assigns, and every filer also submits an annual return by February 28. This is general information; the Department of Treasury administers the tax.

Who has Detroit city income tax withheld?

Employers with a location or business in Detroit withhold from all compensation of Detroit residents, wherever they work, at 2.4%, and from nonresidents whose main place of work is Detroit, at 1.2%. The monthly return is due on the 15th to the Department of Treasury, even with nothing owed. This is general information; the Department of Treasury administers the tax.

What is the Michigan minimum wage in 2026 and 2027?

The minimum wage is $13.73 an hour from January 1, 2026, and the Department of Labor and Economic Opportunity lists $15.00 from January 1, 2027. Tipped employees may be paid $5.49 an hour if tips bring them up to the full rate. Your Payroll Specialist updates pay rates before the first pay run of the new year. This is general information; the department enforces the rules.

More questions, longer answers. Every question has its own link. See all common questions

Getting started

Start with clarity, not a contract.

Three steps, in whatever rhythm suits you. Each one is useful on its own.

  1. Two people shake hands across a desk beside a laptop

    Book a discovery call

    An obligation-free conversation about your goals and what you want the numbers to tell you.

    Obligation-free
  2. A woman takes notes beside a laptop showing a financial report

    Get your free financial health check

    A senior member of the Visory team analyzes your financials and shows you where your finance function can improve. It is free, and it is your own numbers.

    Free · your own numbers
  3. Top-down view of hands on a laptop showing the Visory accounts receivable workflow

    Receive a clear proposal

    A clear commercial proposal for the scope we agree, on one flat monthly fee. No hourly billing. You decide whether to go ahead.

    Flat monthly fee

Get started

The best is ahead for your business.

Start with a discovery call. We will listen first, then show you what your own numbers have been trying to tell you.

Book a discovery call
Sources (27) · rules last checked October 9, 2026

A different Visory region may suit you

You’re viewing Visory US. Would you like to visit Visory AU?