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Free Michigan payroll tax
calculator (and MI tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

Our payroll tax calculator is here to help the wide range of small businesses that make up the state of Michigan. All you need to do is enter each employee’s wage and W-4 information at the top of this page. Our payroll calculator will take care of the rest.

Federal payroll taxes for Michigan employers

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.

  1. Gross Wages. Gross wages represent the amount of money an employee has earned during the most recent pay period. The most popular methods of earning income are hourly and salary, but please don’t forget about commissions, bonuses, and tips as well.
    1. For hourly employees: Multiply the number of hours worked by the employee’s hourly pay rate. Make sure to calculate any overtime hours worked at a higher rate.
    2. For salaried employees: Divide the employee’s annual salary by the number of pay periods per year. If you pay your employees twice a month, then you have 24 pay periods per year.
  2. Pre-Tax Withholdings. Some of your employees may have pre-tax benefits, such as FSA, HSA, or retirement savings accounts. You need to subtract their contributions into these accounts from their gross pay before you start applying federal payroll taxes.
  3. Deduct federal income taxes, which can range from 0% to 37%. Withholding information can be found through the IRS, so we won’t go through all the nitty-gritty details here.
  4. Deduct FICA taxes to cover Medicare and Social Security taxes:
    1. Social Security tax: Withhold 6.2% of each employee’s taxable wages up to their wage limit in a given calendar year. For 2024, the wage limit is $168,600 so any taxable income above this amount is exempt from the Social Security tax. As the employer, you must match your employees’ tax contributions.
    2. Medicare tax: Withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in a given calendar year. You will need to match your employees’ Medicare tax contributions dollar-for-dollar as well. Employees who earn more than $200,000 in taxable wages must pay what’s called an Additional Medicare Tax (super original, right?). The tax rate is 0.9% on top of the original 1.45%. However, only the employee is responsible for paying the Additional Medicare Tax, so you don’t have to match the extra 0.9%.
  5. Pay FUTA unemployment taxes: This one is all on you, as only employers are responsible for paying the FUTA tax. The rate is 6% of the first $7,000 of taxable income an employee earns annually. The tax pays for federal unemployment benefits. Note a huge caveat that you can claim a tax credit of up to 5.4% for the Michigan state unemployment taxes you pay. That means that at the end of the day, you’ll only have to pay 0.6%. Here’s more information from the IRS on the FUTA tax credit.
  6. Deduct post-tax deductions (if necessary): Some employees may have to pay court-ordered wage garnishments or child support. Deduct the proper amount here before you write that paycheck.
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Michigan payroll taxes for 2024

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).

  • Rates range from 0.06% to 10.3% of each employee’s income, up to a wage base of $9,500.
  • If your business is new, the unemployment tax rate is set at 2.7%. Rates range for construction employers from 5.3% to 8.1%.

 

Maintaining compliance

Did you know that workers’ comp is mandatory for almost all employers in the state? Learn more about who needs coverage and the benefits it provides in our employer’s guide to Michigan workers’ compensation insurance.

Check please

Now that you’ve managed to get through both federal and state payroll tax withholdings, you’re ready to cut their checks. You’ll 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.

Other calculators Michigan employers find useful

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.

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