UKG Inc., a leading provider of HR, payroll, and workforce management solutions announces entering into a definitive agreement to acquire Immedis. Read More
Country Payroll Guide USA – Michigan
We deliver secure, compliant, accurate and touchless global payroll for USA - Michigan.

Key Facts
- Capital
- Lansing
- Date format
- mm/dd/yyyy
- Currency
- United States Dollar (USD)
- VAT
- the standard rate is 6%
Contributions
Employers
- Unemployment Insurance (State)
- Unemployment (State) - 0.06% to 10.3%
- Unemployment- New Employer (State)
- Unemployment- New Employer (State) - 1.04%
- FICA Social Security (Federal)
- FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
- FICA Medicare (Federal)
- FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
- FUTA Unemployment (Federal)
- FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
- Total Employment Cost
- Total Employment Cost - up to 23.95%
Employees
- FICA Social Security (Federal)
- FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
- FICA Medicare (Federal)
- FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
- Unemployment (Federal)
- Unemployment (Federal) - 6%
- Total Employee Cost
- Total Employee Cost - up to 14.55%
Minimum Wage
- Minimum Wage
- The minimum wage in Michigan is 9.45 USD per hour.
Payroll
- Payroll Cycle
- Monthly, Bi-Monthly
- 13th Salary
There are no statutory laws on 13th salary.
Income Tax
- Employee Income Tax (1) Single Filer (Federal)
- $0 - $9,875 = 10%
- Employee Income Tax (2) Single Filer (Federal)
- $9,876 - $40,125 = 12%
- Employee Income Tax (3) Single Filer (Federal)
- $40,126 - $85,525 = 22%
- Employee Income Tax (4)Single Filer (Federal)
- $85,526 - $163,300 = 24%
- Employee Income Tax (5) Single Filer (Federal)
- $163,301 - $207,350 = 32%
- Employee Income Tax (6) Single Filer (Federal)
- $207,350 - $518,400 = 35%
- Employee Income Tax (7) Single Filer (Federal)
- Over $518,400 = 37%
Employee Income Tax (State)
- Employee Income Tax (State) (1)
- Flat Rate = 4.25%
Working Hours
- General Working Hours
40 hours per week, eight hours per day.
- Overtime
The required overtime pay is 1.5 times the employees standard pay.
Leave
- Paid Time Off
Employers are not required to provide paid leave.
- Public Holidays
11 public holidays.
- Sick Days
Michigan’s Paid Medical Leave Act allows for employees to accrue one hour of paid sick leave for every 35 hours worked, up to 40 hours per year.
- Maternity Leave
The state of Michigan does not require employers to provide paid maternity leave. If an employee is eligible and covered by the Family and Medical leave act, they may be allowed unpaid leave from the federal government.
- Paternity Leave
The state of Michigan does not require employers to provide paid paternity leave. If an employee is eligible and covered by the Family and Medical leave act, they may be allowed unpaid leave from the federal government.
- Parental Leave
The state of Michigan does not require employers to provide paid parental leave. If an employee is eligible and covered by the Family and Medical leave act, they may be allowed unpaid leave from the federal government. Employees who are eligible are entitled to up to 12 workweeks of leave during a 12-month period.
Termination
- Termination Process
Michigan follows “employment at will” doctrine which means both the employee and employer can terminate the employment at any given time without a reason. At the time of termination the employer must pay all the necessary wages up to the day of termination.
- Notice Period
As an “at-will” state an employer or an employee does not need to provide notice of termination.
- Severance Pay
Michigan does not require employers to provide severance payment.
- Probation Period
As an ‘at-will’ state there is no requirement for a probationary period. Termination procedures are only required if they are in the employee’s collective bargaining agreement.
Visa
- Employment Visa
In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.