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For more about Goldenseal payroll accounting software, click here.
For more about US Federal withholding in the Goldenseal payroll software, click here.
To download free updates for Michigan and federal payroll tax tables, click here.
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 2005. Seven of the past 15
years have also had withholding rate formula changes.
Michigan also charges several local taxes, with separate rates for residents and non-residents.
HINT-- Turtle Creek Software provides free annual updates for
US federal and Michigan tax withholding rates.
Michigan Withholding Instructions
To enter withholding information for an employee, follow these steps:
- Choose Employees from the Accounts menu.
- Locate the employee record.
- 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.
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 Unemployment Tax Instructions
Michigan charges state unemployment insurance tax on the first $9,000 of wages for each employee
(2005 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.
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
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
Ornament was eaten by mosquitoes.

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