Michigan State Payroll Tax Obligations for Employers

Michigan employers withhold state income tax and pay employer unemployment taxes. Register with the Department of Treasury and the Unemployment Insurance Agency, then file withholding Forms 5080 and 5094 and unemployment Form UIA 1028.

What are my Michigan state payroll tax obligations?

Michigan requires employers to withhold income taxes from employee paychecks in addition to employer-paid unemployment taxes. Employees fill out Michigan Form MI W-4, Employee's Michigan Withholding Exemption Certificate, to be used when calculating withholdings.

Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin.

Local city taxes

Local city taxes apply for the following Michigan cities:

• Albion, Battle Creek, Benton Harbor, Big Rapids, Detroit, East Lansing, Flint, Grand Rapids
• Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer
• Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, Walker

The Michigan Department of Treasury publishes links to the individual city forms.

How do I register as an employer?

Michigan employers need to register with both of the following agencies:

1. The Michigan Department of Treasury, for withholding state income taxes from wages.
2. The Michigan Unemployment Insurance Agency, for employer unemployment taxes.

Employers can register online with both agencies using Michigan's eRegistration application.

What are the payroll tax filing requirements?

Income withholding

Employers can file online using the MiWAM (Michigan Web Account Manager) application. A MiWAM toolkit for employers is available for assistance.

Where can I find more information?

• Michigan Department of Treasury — more information on state income tax withholdings, including Michigan's list of Withholding Tax FAQs.
• Michigan Unemployment Insurance Agency — information on unemployment insurance, including an Employer's Handbook covering Michigan state unemployment taxes.

Frequently asked questions

Which states does Michigan have reciprocal agreements with?

Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin.

What form do Michigan employees use for state withholding?

Employees fill out Michigan Form MI W-4, the Employee's Michigan Withholding Exemption Certificate, which the employer uses when calculating Michigan withholdings.

Which agencies do Michigan employers register with?

Michigan employers register with the Michigan Department of Treasury for withholding state income taxes from wages, and with the Michigan Unemployment Insurance Agency for employer unemployment taxes. Both registrations can be completed online using Michigan's eRegistration application.

When is Michigan Form UIA 1028 due?

Form MI UIA 1028, the Michigan Employer's Quarterly Wage/Tax Report, is due on the 25th day of the month following the end of a calendar quarter: April 25, July 25, October 25 and January 25. Employers can file it online using the MiWAM (Michigan Web Account Manager) application.

When are Michigan withholding returns due?

Form MI 5080 and the Form 5094 payment voucher are filed either monthly, due by the 20th of the following month, or quarterly, due by the 20th of the month following the end of the quarter. Form MI 5081, the annual return, is due on or before February 28 of the following year, including leap year.