Country Payroll Guide USA – Michigan

We deliver secure, compliant, accurate and touchless global payroll for USA - Michigan.

Get in touch
Michigan image

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.