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Updated: May 12, 2023
According to the Small Business Association, there are over 900,000 small businesses in Michigan, and they account for 99.6% of all businesses in the state. Whether you’re cooking up the next big coney dog stand or making t-shirts for the Red Wings, one thing all small businesses have in common is that everyone has to deal with the dreaded payroll taxes.
Luckily, our payroll tax calculator is here to help the wide range of small businesses Michigan has to offer. All you need to do is enter each employee’s wage and W-4 information. Our payroll calculator will take care of the rest.
First of all, we gotta give Uncle Sam his fair share. Below is a quick overview of all the steps that go into calculating federal payroll taxes. If you would like to see a more detailed explanation, feel free to check out our step-by-step guide here.
Michigan has a single income tax rate of 4.25% for all residents. Simple enough. But these cities charge an additional income tax ranging from 1.0% to 2.4% for Michigan residents.
Plus, you also need to factor in Michigan’s state unemployment insurance (SUI).
Now that you’ve managed to get through both federal and state payroll tax withholdings, you’re ready to cut their checks.
You obviously need to make sure your employees get paid on time, but please don’t forget to set aside money for employer taxes. FICA, FUTA, and SUI payments can add up if you don’t remit them on a regular basis.
Federal tax filings are due quarterly by filing Form 941. FUTA taxes are due quarterly, but you only need to file annually using Form 940. You can pay taxes using the EFTPS payment system.
Detailed information on employment tax due dates can be found here.
Withholding Tax Forms｜Michigan Department of Treasury
Register as an Employer｜Michigan Department of Treasury
Current tax rates and exemptions | Michigan Department of Treasury
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
Employers in the state of Michigan may use the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in a few clicks. But every now and then, businesses have situations that require a bit more number crunching. For example, if you reward your top performers with bonuses, remember that the IRS considers this type of payment to be supplemental wages and requires taxes to be withheld. Also, there may be times when you’re figuring out final paychecks for employees who decide to move on. So, if you can use a little more help managing the math, check out some of the calculators listed below.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.