Michigan Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2017 Payroll Tax Table Updates

Other Links

New & Used Swiss Army Knives

Michigan has state income tax withholding. Rates are calculated from a 'step' table that is similar to the federal withholding tax tables.

Now that there are increasing numbers of local taxes for Michigan cities, tax tables are pretty much guaranteed to change, every year. However, the Michigan tax website does not yet show any changes for 2017. Unfortunately, Michigan is one of a few laggard states that does not have their tax tables available before New Year's Day.

Fifteen of the past 27 years have seen withholding rate formula changes.

Click here for more about Goldenseal payroll accounting software.

HINT-- Turtle Creek Software provides free annual updates for our payroll software users, covering the latest US federal and Michigan tax withholding rates.

Michigan State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Choose the correct Tax package for the employee, depending on their place of residence.
  6. Enter the number of federal dependents into the Federal Exemptions field.
  7. Enter the number of Michigan dependents into the State Exemptions field.
  8. If the employee qualifies for any special exemptions, report the number of special exemptions in the Other Exemptions field.
  9. Click OK.

Michigan Local Taxes

If the employee resides (resident) or works (non-resident) in Saginaw, Detroit, Highland Park or an increasing number of other cities, you'll need to set up additional Tax Packages, so they will get withholding for local taxes.

To create Tax Packages, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Packages from the submenu.
  2. Click on one of the standard packages, then click Duplicate.
  3. Enter a descriptive name for the package (e.g. Saginaw Non-Resident).
  4. Go through the list of Tax Items, and select any local taxes that apply.
  5. Click OK.
  6. Repeat steps 2 to 5 for each locality where you need to collect taxes.

After you have set up additional Tax Packages, apply them to your employees:

  1. Choose Employees from the Accounts menu.
  2. Use the browser controls at upper left, to locate an employee.
  3. Click the Payroll Setup button.
  4. Enter the Tax Package that applies.
  5. Click OK.
  6. Repeat steps 2 to 5 for each employee that needs local withholding.

Michigan State Unemployment Tax Instructions

Michigan charges state unemployment insurance tax on the first $9,000 of wages for each employee (2016 cutoff). The cutoff remains at $9,500 for employers who are delinquent with payments. 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.

Michigan 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


Michigan Tax Contacts

Withholding tax website

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

Lower peninsula-- rusting automotive factory.

Upper peninsula-- sorry, ornament was eaten by mosquitoes.