Michigan employer tax information
About Michigan employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Michigan, you must be registered with the Michigan Department of Treasury and Michigan Unemployment Insurance Agency so we can pay and file your state taxes.
For Michigan Department of Treasury, you need your:
Michigan Withholding Account Number (9 digits)
Michigan Filing Frequency (Monthly, quarterly, annually, or accelerated)
For Michigan Unemployment Insurance Agency, you need your:
Michigan UIA Employer Account Number (7 digits)
Michigan Computed Rate
Michigan Obligation Assessment Rate
The Michigan Unemployment Insurance Agency typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Michigan website or contact the MI Unemployment Insurance Agency directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Michigan payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Michigan Department of Treasury
Withholding Tax Payment: processes after every pay run
-
Sales, Use and Withholding Taxes Return (Form 5080): processes monthly or quarterly
Square Payroll will only submit the Withholding section of this return. You are responsible for filing the Sales and Use Tax portions of Form 5080.
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Sales, Use and Withholding Taxes Annual Return (Form 5081): processes annually
Square Payroll will only submit the Withholding section of this return. You are responsible for filing the Sales and Use Tax portions of Form 5081.
Wage and Tax Statement (W-2): processes annually
Michigan Unemployment Insurance Agency
Employer’s Quarterly Wage/Tax Report (UIA 1028): processes quarterly
Michigan Department of Human Services
New Hire Report: processes as needed
Additional information regarding Form 5080/5081
Forms 5080 and 5081 are combined returns used to report sales tax, use tax, and income tax withholding. Square Payroll is only able to report the withholding section of this return as we do not have the necessary information to file the sales and use tax portions.
You will need to file an additional Form 5080 / 5081 with the owed sales and use tax amounts. If sales and use tax are not owed, you can enter zeros for these amounts. Additionally, leave the withholding tax portion of the form blank as Square Payroll will be filing this for you. The Michigan Department of Treasury will then be able to combine the form you filed with the one that Square Payroll filed on your behalf.
Michigan city-level payroll tax details
If you reside in one of the 23 Michigan cities that levy a city-level income tax, you will need to specify tax allowances for both your Residence City and Employment City, similar to the way you specify tax allowances for state-level income tax.
If you are an employee and live and/or work in a city that does not have a city tax, enter zeros in both fields of the Michigan Local Tax section of your Payroll dashboard when setting up your account.
Michigan cities with a city-level income tax:
Albion City
Battle Creek City
Benton Harbor City
Big Rapids City
Detroit City
Flint City
Grand Rapids City
Grayling City
Hamtramck City
Highland Park City
Hudson City
Ionia City
Jackson City
Lansing City
Lapeer City
Muskegon City
Muskegon Heights City
Pontiac City
Port Huron City
Portland City
Saginaw City
Springfield City
Walker City
Square Payroll processes the following per the frequency for the listed city agencies.
Michigan Department of Treasury
City of Detroit Withholding Tax Payment: processes after every pay run
City of Detroit Income Tax Withholding Monthly Return (Form 5323): processes monthly
City of Detroit Income Tax Withholding Annual Reconciliation (Form 5321): processes annually
City of Hudson Quarterly Withholding Filing: processes quarterly
City of Hudson Annual Reconciliation Filing: processes annually
Multiple cities
Employer’s Monthly Deposit of Income Tax Withheld (CF-501): processes monthly
Employer’s Quarterly Return of Income Tax Withheld (CF-941): processes quarterly
Employer’s Annual Reconciliation of Income Tax Withheld (CF-W-3): processes annually
Wage and Tax Statement (W-2): processes annually
Make Michigan payroll tax payments
Use the Michigan Treasury Online (MTO) to make withholding tax payments online.
To pay online, visit the Michigan Department of Treasury website.
To pay by mail, complete Form 5323 and mail your payment to the address indicated on the form. Make a check payable to the State of Michigan - Detroit.
Sign in to your local tax agency’s website or complete your Employer Withholding Tax Form 941 and mail with payment to your respective city’s address below.
Albion
City of Albion, Income Tax Division,
112 W Cass St, Albion, MI 49224-0900
Make check payable to City of Albion.
Battle Creek
Battle Creek City Income Tax
PO Box 1657
Battle Creek, MI 49016-1657
Make check payable to City of Battle Creek.
Benton Harbor
City of Benton Harbor
PO Box 597
Benton Harbor, MI 49023
Make check payable to City of Benton Harbor.
Big Rapids
Income Tax Processing Center
PO Box 536
Eaton Rapids, MI 48827-0536
Make check payable to City of Big Rapids.
Flint
City of Flint Income Tax Department
PO Box 529
Eaton Rapids, MI 48827-0529
Make check payable to Treasurer, City of Flint.
Grand Rapids
Grand Rapids Income Tax Dept
PO Box 347
Grand Rapids, MI 49501-0347
Make check payable to City of Grand Rapids.
Grayling
City of Grayling Income Tax Division
PO Box 549
Grayling, MI 49738
Make check payable to City of Grayling.
Hamtramck
City of Hamtramck Income Tax Div
PO Box 209
Eaton Rapids, MI 48827-0209
Make check payable to City of Hamtramck.
Highland Park
City of Highland Park Income Tax Div
PO Box 239
Eaton Rapids, MI 48827-0239
Make check payable to City of Highland Park
Ionia
City of Ionia Income Tax Division
PO Box 512
Ionia, MI 48846
Make check payable to City of Ionia.
Jackson
City of Jackson Income Tax Division
161 W Michigan Ave
Jackson, MI 49201
Make check payable to City of Jackson.
Lansing
City of Lansing Income Tax Dept
124 W Michigan Ave, Rm G-29
Lansing, MI 48933
Make check payable to City of Lansing.
Lapeer
City of Lapeer Income Tax Department 576
Liberty Park Lapeer, MI 48446-2140
Make check payable to City of Lapeer.
Muskegon
City of Muskegon Income Tax Dept
PO Box 29
Muskegon, MI 49443-0029
Make check payable to City of Muskegon.
Muskegon Heights
Muskegon Heights Income Tax Division
2724 Peck St
Muskegon Heights, MI 49444
Make check payable to City of Muskegon Heights.
Pontiac
City of Pontiac Income Tax Division
PO Box 530
Eaton Rapids, MI 48827-0530
Make check payable to City of Pontiac.
Port Huron
City of Port Huron Income Tax Division
100 McMorran Blvd
Port Huron, MI 48060
Make check payable to City of Port Huron
Portland
City of Portland Income Tax Dept
259 Kent St
Portland, MI 48875
Make check payable to City of Portland.
Saginaw
City of Saginaw Income Tax Office
1315 S Washington Ave
Saginaw, MI 4860
Make check payable to City of Saginaw.
Springfield
City of Springfield Income Tax Dept
601 Avenue A
Springfield, MI 49037-7774
Make check payable to City of Springfield.
Walker
Walker City Income Tax Dept
PO Box 153
Grand Rapids, MI 49501-0153
Make a check payable to the City of Walker.
Make Michigan payroll withholding tax filings
Sales, Use, and Withholding tax returns are due on either a monthly or quarterly basis. If you are required to file monthly, your filing is due on the 20th day following the end of the month (for example, due on November 20 for the month of October). If you are required to file quarterly, your filing is due on the 20th day of the month following the end of the calendar quarter (for example, due on April 20 for the first quarter). Paper returns are not accepted.
Use the Michigan Treasury Online (MTO) to file and make sales, use, and withholding returns online.
For questions about withholding tax payments, contact the Michigan Department of Treasury at 517-636-6925 or visit the Michigan Department of Treasury website.
The annual Sales, Use and Withholding tax return is due by February 28 for the prior calendar year.
Use the Michigan Treasury Online (MTO) to file and make sales, use, and withholding payments online.
For questions about annual tax reporting, contact the Michigan Department of Treasury at 517-636-6925 or visit the Michigan Department of Treasury website.
State copies of Form W-2 are due by February 28 for the prior calendar year.
- To file online, upload wage statement information through Michigan Treasury Online (MTO).
- To file by mail, mail W-2’s separately to Michigan Department of Treasury, Lansing, MI 48930. Do not include a copy of the annual return with the wage statements. Do not include wage statements with your annual return filing.
- To file Michigan wage statement information by magnetic media, employers must have 250 or more Michigan employees. For W-2 and 1099 reporting specifications, see Transmittal for Magnetic Media Reporting (Form 447) at the Michigan Department of Treasury website.
If you have any questions, contact the Michigan Department of Treasury at 517-636-6925.
Make unemployment insurance tax filings in Michigan
The Michigan Unemployment Insurance Agency typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Michigan website or contact the MI Unemployment Insurance Agency directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Unemployment insurance tax reports are due on the 25th of the month following the end of the calendar quarter.
- To file online, use the Michigan Web Account Manager (MiWAM).
- To file by mail, a form will be mailed to you about 30 days before the completed form is due back to UIA. Use this form and follow the instructions at the bottom to complete and mail to the MI Unemployment Insurance Agency.
For questions about completing the Form, you may call the UIA Tax Office, Reimbursing Unit, at 313-456-2080 or visit the Michigan UIA website.
Find your Michigan tax account numbers and filing frequency
If you are a new business, register online with the Michigan Department of Treasury. This number will match your Federal EIN and your application will be processed within 5-10 minutes.
If you are already registered with the Michigan Department of Treasury, you can find your Michigan Withholding Account Number and Filing Frequency on the Michigan Department of Treasury website or by contacting the Michigan Department of Treasury at 517-636-6925.
If you are a new business, register online with the Michigan Unemployment Insurance Agency to retrieve your Michigan UI Employer Account Number.
If you already have a Michigan UIA Employer Account Number, look this up on the Michigan Unemployment Insurance Agency or find it on correspondence received from the Michigan Unemployment Insurance Agency. If you are unsure, contact the agency at 855-484-2636 or at [email protected].
The Total Rate is a combination of the Computed Rate and Michigan Obligation Assessment Rate. You can find this on the Tax Rate Determination mailed by the Michigan Unemployment Insurance Agency each year.
If you are unsure, contact the agency at 855-484-2636 or [email protected].
Payroll reciprocal state agreements
A reciprocal agreement is an agreement between two states that allows employees that work in one state but live in another to request exemption from tax withholding in their employment state. This means that the employee would not have income tax withheld from their paycheck for their employment state; they would only pay income taxes to the state where they live.
A Non-Residency Certificate (or statement or declaration), is used to declare that an employee is a resident of a state which has a reciprocal agreement with their work state and therefore chooses to be exempt from withholding income tax in their work state. A non-resident employee qualifying for this exemption must complete and file this declaration with his or her employer as authorization for the employer to stop withholding state income taxes where the employee works. Employers should keep the non-residency certificate on file.
Michigan has reciprocal agreements with:
Illinois
Indiana
Kentucky
Minnesota
Ohio
Wisconsin
Non-resident employees should file Form MI-W4