Daniel Eisner is a payroll specialist with over a decade of practical experience in senior accounting positions.
Updated on September 28, 2023
Michigan Paycheck Calculator
What Are Payroll Taxes?
Michigan Payroll Taxes
State Income Tax
Paying Payroll Taxes
Using a Payroll Tax Service
Use Michigan Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.
State
Where are you employed?
Salary
How much do you get paid annual?
Salary frequency
How often are you paid?
Marital status
What is your federal filing status?
Dependent(s)
Children under 17 and students under 24
All other dependents
Employee Location
Where do you live?
Benefits and Deductions
Help
The addition of employee benefits such as 401(k)s and health insurance can affect
how your paycheck is calculated. Please add any deductions for benefits offered by
your company.
Choose a calculation method:
Fringe Benefits
Help
Fringe benefits are additional non-cash benefits offered by employers and are
often taxable, which can affect an employee’s paycheck and final take-home pay.
Please skip this section if you don’t use any of these benefits.
Choose a calculation method:
Gross Pay
$0
Income taxes
0%
$0
Federal Income Tax
0%
$0
Alabama State Tax
0%
$0
Local Tax
0%
$0
FICA taxes
0%
$0
Social Security
0%
$0
Medicare
0%
$0
Additional Medicare
0%
$0
Pre tax
0%
$0
Post tax
0%
$0
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
Michigan Payroll Taxes
There are two Michigan employer payroll taxes to keep track of in addition to Social Security and Medicare.
Employers contribute to a state unemployment tax account (SUTA) and employees pay state income tax.
SUTA
Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
In Michigan, SUTA is paid on the first $9,500 of annual employee income, as of 2022. Rates, from the Michigan Department of Labor and Economic Opportunity website, are determined as follows:
Generally, in the first two years of a business’s liability, the tax rate is set by law at 2.7%, except for employers in the construction industry, whose rate in the first two years is that of the average employer in the construction industry, which is announced by UIA early each year. In recent years, this construction rate has ranged from 6.8% to 8.1%.
The rates in the third and fourth years of liability are partly based on the employer’s own history of benefit charges and taxable payroll. This history is known as an employer’s unemployment insurance experience.
Beginning in the fifth year of liability, the tax rate is made up of three components which are computed separately and then added together to figure the yearly tax rate.
The three components are the Chargeable Benefits Component (CBC); the Account Building Component (ABC); and the Nonchargeable Benefits Component (NBC).
To pay these taxes, simply log into these sites. Withholding taxes are due monthly, quarterly, or annually depending on the total withheld. SUTA taxes are due quarterly.
Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.
In Michigan, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!
