Michigan Payroll & HR Services
From downstate to the UP, Gusto’s Michigan payroll services let you pay your team in a snap while taking complex compliance off your plate. Easily manage payroll and much, much more—all in one intuitive, fully integrated small business platform.
Taxes, taken care of.
Federal, local, and Michigan state payroll taxes are filed and paid every time you pay your team.
Compliance done right.
From Michigan state minimum wage to state tax reciprocity, we’ll help you stay a step ahead of compliance headaches.
One-stop shop
Take care of your team all in one place with fully integrated hiring, time tracking, benefits, performance management, and more.
A payroll provider businesses actually love.
88%
agree Gusto helps them stay compliant with regulations.‡
9 out of 10
customers would recommend Gusto*
4.5/5 stars
average rating from Gusto customers.*
Michigan Payroll
Payroll that’s easy as a day on the lake.
Kick back and relax knowing payroll is accurate and on time, every time. Time tracking is integrated, deductions are automatic—and employee self-service empowers your team to access paystubs, tax forms, timesheets, and benefits without adding admin. Got salaried employees? Set it and forget it with Payroll on Autopilot.
Fully integrated
Built to work as hard as Michiganders do.
Our payroll and small business platform works ‘round the clock so that you don’t have to. With built-in benefits, powerful time tracking and scheduling that seamlessly syncs to payroll, and robust hiring and onboarding tools—you can take care of your team without breaking a sweat.
✔ Integrated time tracking & scheduling
✔ Powerful performance management
✔ Fee-free benefits administration
✔ Streamlined hiring & onboarding
Michigan tax & compliance
Lighten your load with built-in compliance.
From Michigan state tax registration* to year-end tax forms and secure document storage, we take the stress out of complex compliance. Our Compliance Hub provides personalized updates and upcoming deadlines to help you stay ahead across the mitten—and of course, payroll taxes are taken care of every time you pay your team.
*State tax registration and compliance alerts are paid add-on features (see details)
Michigan payroll laws & requirements
Michigan minimum wage
Minimum wage for adult employees in Michigan will increase between 2020 and 2021. Here’s what to expect:
As of January 1, 2020: $9.65/hour
As of January 1, 2021: $9.87/hour
For adult employees who earn tips, the minimum wage is:
As of January 1, 2020: $3.67/hour
As of January 1, 2021: $3.75/hour
The minimum wage 16- and 17-year-olds is 85% of the set minimum wage. Additionally, employees aged 16 to 19 can be paid a training wage of $4.25 an hour for the first 90 days of employment.
Michigan pay stubs
With every paycheck, Michigan employers must provide pay stubs with the following information:
The number of hours worked
Gross wages earned
The dates of the pay period
Any itemized deductions taken from the employee’s paycheck
Michigan pay periods
Michigan employers may pay their employees on any of the following schedules:
Once per month, with payment issued within 15 days of the pay period’s ending
Twice per month, with payment issued within 14 days of the pay period’s ending
Weekly, with payment issued within 14 days of the pay period’s ending
You may pay employees more often, with no rules on when to schedule the payday.
Determining time worked in Michigan
Michigan has no guidelines regarding the definition of time worked. However, you must pay overtime when an employee hits 40 hours in a workweek.
Michigan overtime pay and tracking
Michigan employers must pay nonexempt employees overtime pay of time and a half for all hours worked over 40 hours during a given workweek. There are no guidelines for tracking hours.
Michigan final wage payment
When a Michigan employee parts ways with your company for any reason, you must pay all wages due by the next payday. For any contracted employees, payment is due upon termination of the contract.
Income tax withholding in Michigan
As of 2020, all Michigan employers must withhold Michigan state income tax of 4.25%.
Michigan benefits
Employees in Michigan are entitled to federal benefits outlined in the Family and Medical Leave Act (FMLA) and by Social Security. Michigan has additional state rules on these employee benefits:
Workers’ compensation: With extremely limited exceptions, Michigan employers must provide their employees with workers’ compensation insurance.
Health insurance: Although Michigan state law does not require employers to provide health insurance, the federal Patient Protection and Affordable Care Act (ACA) mandates that all U.S. employers with 50 or more full-time (or equivalent) employees offer employee insurance benefits.
Sick leave: Michigan employers with 50 or more employees, whether part-time or full-time, must give employees one hour of paid medical leave for every 35 hours worked, with a maximum of 40 sick leave hours per year.
Voting: Michigan doesn’t require employers to give employees paid or unpaid time off to vote.
Frequently Asked Questions
While many payroll providers offer payroll services in Michigan, not all of them are built to handle Michigan’s state-specific regulations. Gusto’s Michigan payroll services are designed specifically to help your business navigate minimum wage, state and local taxes, and legislation surrounding workers’ comp, sick leave, and more. Check out the Michigan Department of Labor to learn more about payroll and labor law in Michigan.
As an employer in Michigan, you are required to withhold Michigan state income tax from your employees’ wages as well as state unemployment insurance (SUI). Tax rates differ depending on how your business is structured. Check out this guide for more information on Michigan payroll taxes or use our Michigan state hourly payroll calculator.
Yes. Michigan has income tax reciprocity agreements with Indiana, Ohio, Wisconsin, and Illinois. Eligible employees who live in one of these states but work in Michigan generally only pay income tax to their state of residence—not both. Once the employee submits the required exemption form, Gusto applies the correct withholding automatically to keep payroll accurate and compliant.
Unlike many payroll companies in Michigan that focus only on cutting checks, Gusto offers an all-in-one platform that combines payroll, tax filing, benefits, time tracking, scheduling, and HR tools in one place. It’s built to help Michigan businesses save time, stay compliant, and grow with confidence.
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