As an employer in Michigan, it is important to understand the process of payroll tax registration. Registering for payroll taxes ensures that you comply with state regulations and accurately report and pay taxes on behalf of your employees.
How Michigan Payroll Registration Works
There are 2 payroll tax setup tasks you may need to complete in Michigan to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Michigan agencies or use Mosey to do it.
Michigan Unemployment Insurance Setup for Corporation, LLP, LLC
Employers must register with the Unemployment Insurance Agency for Unemployment Insurance tax. You are generally required to pay Unemployment Insurance tax if you have at least $1,000 in gross payroll in a calendar year or at least one employee in 20 different weeks within a calendar year. When registering a new business you can also register for withholding tax at the same time. Note: During the registration process, 501(c)(3) organizations will have the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the Michigan Unemployment Fund for benefits paid to terminated employees. Once reimbursing status is granted, it must be retained by the organization for at least two calendar years.
- Complete New Business Registration Online
Register as a new employer online with eRegistration, Michigan's combined tax registration service for new businesses. You will receive your employer account number from the Unemployment Insurance Agency within three days. Note: During the registration process, you will have the option to also register for Sales & Use Tax and Corporate Income Tax accounts.
- Sign up for a MiWAM Employer Account
After receiving your Unemployment Insurance Agency number, use it to sign up for an MiWAM employer account.
Michigan Withholding Tax Setup for LLP, Corporation, LLC
Employers must register with Department of Treasury for withholding tax. Generally speaking, you are required to withhold state personal income tax if you pay wages to at least one employee. Note: When registering a new business you can also register for Unemployment Insurance at the same time.
- Complete New Business Registration Online
Register as a new employer online with eRegistration, Michigan's combined tax registration service for new businesses. In 10-15 minutes, you will get a withholding account number from Michigan Treasury that's the same as your FEIN. Note: During the registration process, you will have the option to also register for Sales & Use Tax and Corporate Income Tax accounts.
- Create a Michigan Treasury Online User Profile
Create a user profile on Michigan Treasury Online.
- Connect Your Business to Michigan Treasury Online User Profile
After receiving your withholding account ID, log in to Michigan Treasury Online with your user profile and connect it with your business through the Sales, Use & Withholding Tax dashboard.
