Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.
Paid Sick Leave
Under Michigan’s paid sick leave law, employees in Michigan working for an employer with 50 or more employees are eligible to accrue at least one hour of paid sick leave for every 35 hours worked for each calendar year (or other 12-month period), up to a cap of 40 hours per year.
Michigan Chamber of Commerce: Paid Medical Leave Act
Michigan rules on overtime and minimum wage can be found at the link below.
Michigan Dept. of Licensing and Regulatory Affairs (LARA): Minimum Wage & Overtime FAQs
In Michigan, the final paycheck for separating employees should be issued no later than the next regularly scheduled payday.
If indicated by company policy, accrued and unused vacation must be paid to employees upon separation.
Additionally, the unemployment insurance notice (Form UIA 1711, “Unemployment Compensation Notice to Employee”) must be provided to all separating employees, regardless of the reason for leaving. You can access the form here.
MI Dept. of LARA: Payment of Wages at Termination
MI Dept. of LARA: Payment of Fringe Benefits at Termination
MI Unemployment Insurance Agency: How to file a claim for unemployment insurance benefits
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.