Updated September 20, 2023
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Michigan employers
- Where you can find the tax account numbers needed
- Paying employees in other states?
Why is this important?
The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers.
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What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Michigan employer so OnPay can accurately file and pay taxes on your behalf:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the Michigan Department of Treasury |
Allows your business to file and pay taxes in Michigan |
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Make sure your business is registered with the Michigan Department of Labor |
Allows your business to pay required unemployment insurance in Michigan |
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Provide OnPay with your Michigan Tax ID and deposit schedule |
The employer identification number issued by the Michigan Department of Treasury. This number is also your business FEIN. |
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Provide OnPay with your Michigan Unemployment ID |
A 7-digit number unique to your account with the Michigan Department of Labor. |
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Provide OnPay with your Michigan Unemployment (SUI) Rate |
A tax rate you receive annually from the Michigan Department of Labor |
What state and local taxes and filings OnPay handles for Michigan employers
OnPay handles the filing of all state and local taxes for businesses in Michigan, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
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Withholding |
Form 5080 |
Sales, Use and Withholding Taxes Monthly/Quarterly Return |
Monthly & Quarterly |
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Form 5081 |
Sales, Use and Withholding Taxes Annual Return |
Annual |
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Form 447 |
Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s to the State of Michigan |
Annual |
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State W-2 |
Wage and Tax Statement |
Annual |
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Unemployment |
UIA 1028 |
Employer’s Quarterly Wage/Tax Report |
Quarterly |
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Other |
New Hire Report (Filing) |
State of Michigan New Hire Reporting Form |
As required |
City Withholding:
The cities listed below impose an income tax on residents and non-residents. OnPay will complete the filings and payments on behalf of your business. Your business will need to register with the cities in which your employees work. Please complete the registration(s) and provide OnPay with the tax ID when received.
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in Michigan, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in Michigan, you will need to register your business with the Michigan Department of Treasury and the Michigan Department of Labor. This must be completed for OnPay to be able to file and pay your Michigan taxes.
Withholding Tax Account Number
Existing Michigan Employer:
You can find your MI Withholding Tax ID Number on any notices you've received from the Department of Treasury. This number is always the same as your company's FEIN.
New Michigan Employer: Register with the Michigan Department of Treasury
- Click here and follow the instructions for registering your business
- You will need to register with this department if you have employees that both live and work in Michigan, or for any employees that calculate Michigan withholding taxes regardless of where they live/work. if your business is located outside of Michigan, but your employees work or live in Michigan you will likely need to register with this agency.
Unemployment Account Number and Tax Rate
Existing Michigan Employer:
- You can find your MI UIA Account number on any notices that you have received from the Department of Labor. If you have a 7 digit UIA Account number please enter 000 for the last three digits to make it 10 digits long.
- Your Unemployment Tax Rate can also be found on the bottom right of the Tax Rate Notice (UIA 1771). Rates generally fall around 2.70% for SUTA, with a wage base of $9,500.
New Michigan Employer: Register with the Michigan Department of Labor
- Click here and follow the instructions to register your business.
- You will receive their Unemployment (UIA) Employer Account Number in 3 days after completing the online registration. This process can take up to 30 days if registration is completed by mail.
- You will need to register with this department if you have employees that work in Michigan. If your business is located out of the state, but some of your employee's primary work location is in Michigan, you will likely need to register with this agency.
- New employers generally have a rate of 2.7% (or 6.3% for those in the construction industry) for SUTA with a wage base of $9,500.
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
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