Michigan payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set these rates based on the type, age, and size of your business
• TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Michigan Employers.

• 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:
  
  

  All Michigan employers	What is this?
  Make sure your business is registered with the Michigan Department of Treasury	Allows your business to file and pay taxes in Michigan More info >
  Make sure your business is registered with tax offices for the city or cities where your employees live (where applicable)	Allows your business to file and pay withheld income taxes to the cities in Michigan where your workers live More info >
  Make sure your business is registered with the Michigan Department of Labor	Allows your business to pay required unemployment insurance in Michigan More info >
  Provide OnPay with your Michigan Tax ID and deposit schedule	A 9-digit number issued by the Michigan Department of Treasury More info >
  Provide OnPay with your Michigan Unemployment ID	A 7-digit number unique to your account with the Michigan Department of Labor More info >
  Provide OnPay with your Michigan Unemployment (SUI) Rate	A tax rate you receive annually from the Michigan Department of Labor More info >

• Taxes and filings OnPay handles for Michigan Employers

  Withholding Tax

  Form 5080	Sales, Use and Withholding Taxes Monthly/Quarterly Return	- Monthly and Quarterly
  Form 5081	Sales, Use and Withholding Taxes Annual Return	- Annual
  Form 447	Transmittal for Magnetic Media Reporting of W-2s, W-2Gs, and 1099s to the State of Michigan	- Annual
  State W-2	Wage and Tax Statement	- Annual

  Unemployment Insurance Tax

  UIA 1028

  Employer’s Quarterly Wage/Tax Report

  - Quarterly

  Other

  New Hire Report

  Michigan Report of New Hires

  - As required

Where you can find the tax account numbers you need

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 

• Register your business at Michigan Treasury Online
• You'll 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

Updated March 21, 2025

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 range from 0.06% to 10.3% for SUTA, with a wage base of $9,000 for qualifying employers*

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 (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 5% for those in the construction industry) for SUTA with a wage base of $9,000 for qualifying employers*

*The state of Michigan defines a qualified employer as one who has completed and submitted all required quarterly tax reports, and does not have an unpaid balance of $25 or more in tax, penalties, or interest. The Michigan Department of Labor assigns non-qualifying employers an unemployment wage base of $9,500.

• When calculating unemployment contributions, OnPay assumes the standard wage base of $9,000 for Michigan employers. If you've been assigned a wage base of $9,500 by the Department of Labor, submit a request* to have this rate adjusted for your account. Unless notified, OnPay is not responsible for any penalties or fees that result from the underpayment of this tax due to wage base.
  *OnPay login 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.

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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