Michigan Payroll Instructions

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US Federal Withholding Tables

Free 2008 Payroll Tax Table Updates

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Michigan has state income tax withholding. Rates are calculated from a 'step' table that is similar to the federal withholding tax tables.

There was a exemption rate change in 2008. Ten of the past 18 years have also had withholding rate formula changes.

Michigan also charges several local taxes, with separate rates for residents and non-residents.

Click here for more about Goldenseal payroll accounting software.

HINT-- Turtle Creek Software provides free annual updates for US federal and Michigan tax withholding rates.

Michigan State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

Choose Employees from the Accounts menu.
Locate the employee record.
Click the Payroll Setup button.
Enter the employee's marital status into the Marital Status field (see note below).
Choose the correct Tax package for the employee, depending on their place of residence.
Enter the number of federal dependents into the Federal Exemptions field.
Enter the number of Michigan dependents into the State Exemptions field.
If the employee qualifies for any special exemptions, report the number of special exemptions in the Other Exemptions field.
Click OK.

Michigan Local Taxes

If the employee resides (resident) or works (non-resident) in Saginaw, Detroit, or Highland Park, choose the tax package for that location.

If the employee is a resident of an area subject to 1% local tax, choose the 1% Local Tax package.

The 0.5% Local Tax package is for Nonresident employees working in areas subject to 1% local tax.

Michigan State Unemployment Tax Instructions

Michigan charges state unemployment insurance tax on the first $9,000 of wages for each employee (2008 rate). The starting SUTA tax rate is 2.7% for most businesses, and between 6.8% and 8.1% for construction companies. After the first year the rate is different for each business, depending on past layoff history.

To enter your Michigan SUTA tax rate into the Goldenseal payroll software, follow these steps:

Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
You'll see a list of Tax Items. Locate the Michigan SUTA tax in the list, and double-click on it. HINT: If you don't see Michigan SUTA in the list, you'll need to import your state's payroll info first.
Enter your SUTA percentage rate into the percentage field to the right of Calculation method.
If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Michigan Marital Status

Enter one of the following values into the Marital Status field on each Employee account:

Single- single employee with one personal exemption
Married- married employee with two personal exemptions
Dual Income- married employee with one personal exemption
Head of House- employee claims Head of Family status
Other- not used

Michigan Tax Contacts

Payroll Tax Office-- 800 487-7000
Forms-- 800 367-6263
Fax On Demand-- 810 754-0362
SUTA-- 517 373-3190

Michigan Dept of the Treasury
430 West Allegan St.
Lansing MI 48956

Official State Lawn Ornament

Lower peninsula-- rusting automotive factory.

Upper peninsula-- sorry, ornament was eaten by mosquitoes.

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