Michigan New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Obtain an Employer Identification Number, (also known as an EIN or FEIN), for your business if you do not already have one. The simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EIN’s, read our help article, “How to Apply for an EIN”
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online. You will need to have this account to make tax payments online, or view payments made on your behalf by Patriot.
- To find out more about the EFTPS, please read our article, “What is EFTPS?”
State of Michigan Tax Accounts:
- You can register your business online using e-Registration. Using this application you will be able to create accounts with the Department of Treasury for all State Income Taxes (SIT) and the Michigan Unemployment Insurance Agency for State Unemployment Taxes (SUI). Please note: you must have an FEIN, (Federal employer identification number) before you can register with the state of Michigan.
- The new employer State Unemployment Tax Assessment (SUTA) rate for Michigan is 2.7% + 1/3 of the employer’s calculated CBC for the first year of liability. New Employers in Michigan will keep this State Unemployment Tax Assessment (SUTA) rate for 2 years.
- The state of Michigan also has a Obligation Assessment Rate. This is in addition to your new employer SUTA rate for Michigan, and will be entered seperately in our software.
- Michigan new employers will have an Obligation Assessment ratio of 0.166825.
- To learn more about the Obligation Assessment Rate, or determine rate of exsisting employers, please visit the Michigan UIA.
- Online reporting for SUTA taxes is mandatory. Employers will need to create a Michigan Web Account Manager (MiWAM) account.
- To learn more about SUTA, please read our article, “What is SUTA Tax?”
- Employers in these localities must register with local tax agencies: Albion, Battle Creek, Big Rapids, Detroit, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, and Walker.
- For more more information please visit the Michigan Department of Treasury.
Setting Up Your New Employee:
- Employees need to fill out the Form W-4, Employee’s Withholding Certificate, for Federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Employees should complete the MI- W-4 Employee Withholding Exemption Certificate for state income taxes (SIT).
- Report all new hires within 20 days from the date of hire or rehire. You can report new hires online.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for Michigan new employers. Please visit government websites for further information.