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Michigan Payroll Instructions

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:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Enter the employee's marital status into the Marital Status field (see note below).
  4. Choose the correct Tax package for the employee, depending on their place of residence.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Michigan dependents into the State Exemptions field.
  7. 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:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. 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.
  3. Enter your SUTA percentage rate into the percentage field to the right of Calculation method.
  4. 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.