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Paying employees in Michigan
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Michigan, you must be registered with the Michigan Department of Treasury (income tax withholding), the Michigan Unemployment Insurance Agency (unemployment tax), and local agencies if applicable.
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Michigan Accounts Registration and Rate Info
Registering for a Withholding Tax Account:
To register online:
- Visit the Department of Treasury registration and FAQ page.
- Follow their step-by-step instructions to register.
- You can register online through Michigan Treasury Online (MTO) or by mailing Form 518.
- MTO online registration is processed and authenticated within 10–15 minutes after submission. (Recommended)
- Form 518 by mail takes 4–6 weeks for processing.
For registration questions or to check the status of your application, contact the Registration Unit at (517) 636-6925.
Registering for an Unemployment Tax Account:
Register with the Michigan Unemployment Insurance Agency to obtain your unemployment account number and tax rates. You should receive this information a few days after completing registration.
Steps to register:
- Visit the Unemployment Insurance Agency website.
- Scroll to the “Employer Services” section.
- Click "Register a business" (direct link provided).
- Click the "Start eRegistration" button to begin.
- Review the necessary information for registration and click "Next step"
- Complete all the prompts and submit your application.
After registering, you will receive your Employer Account Number and unemployment tax rates within a few days. For questions about your unemployment tax number or rate, contact the agency at (855) 484-2636, option 4.
Already Registered? Locate This Information
Locate Your Withholding Tax Account Number:
If you've previously processed payroll in Michigan, your 9-digit Withholding Tax ID Number (XX-XXXXXXX) can be found on any letter from the Department of Treasury.
- This number is identical to your company's Federal Employer Identification Number (FEIN). Enter your FEIN in the "Withholding ID/Taxpayer ID" field in Justworks Payroll.
- Please note, in order for your FEIN to be valid, you must ensure you are registered with the MI Department of Treasury.
- For any questions, contact the agency at (517) 636-6925.
Locate Your Unemployment Account Number and Rate:
UIA Employer Account Number:
- If you've previously run payroll in Michigan, your 10-digit UIA Employer Account Number (XXXXXX XXX) can be found on correspondence from the Unemployment Insurance Agency.
- Important: If your UIA Employer Account Number is 7 digits, add "000" to the end to make it 10 digits.
- If you don't know your account number, contact the agency at (855) 484-2636, option 4.
Unemployment Insurance Total Tax Rate:
- Your total unemployment tax rate is listed on the bottom right of Form UIA 1771, the "Tax Rate Determination for Calendar Year" notice you receive annually from the Unemployment Insurance Agency. This rate includes the Obligation Assessment (OA) Tax.
- If you're unsure of your rate, call the agency at (855) 484-2636, option 4.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid MI address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Michigan” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your MI Withholding Tax Account Number, Unemployment Account Number and Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your MI tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your MI state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your MI state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.