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Before distributing pay stubs to your employees and contractors in Michigan, it's essential to understand the relevant laws and regulations and paystub requirements in the state.

This guide provides comprehensive insights into the applicable legal requirements and regulations that Michigan employers must adhere to when managing payroll and issuing pay stubs.

Pay stub regulations in Michigan

1. Are pay stubs required by law in Michigan?

Employers in Michigan must provide their employees with pay stubs every payday.

2. How often do you need a pay stub in Michigan?

You can pay your employees either weekly, bi-weekly, semi-monthly, or monthly as there's no rules on when to schedule the payday. As pay stubs are mandatory in Michigan, you will need to provide pay stubs every time you pay your employees.

Note: The frequency of an employee's payday varies based on their occupation.

3. What information can be included on a pay stub in Michigan?

The following information must be included in employee pay stubs:

Employee information such as name, last 4 digits of social security number, and address
Employer information such as name, employer identification number (EIN), and address
Number of hours worked during the pay period
Tax Deductions
Any itemized deductions taken from the employee's paycheck
Gross wages earned
The dates of the pay period.

4. Does Michigan have a state income tax?

Yes, state income taxes are applicable to employees in the state of Michigan.

5. Are there any other taxes applicable to Michigan?

Yes, the following Michigan cities have local taxes: Albion, Battle Creek, Benton Harbor, Big Rapids, Detroit, East Lansing, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, and Walker.

Information needed to generate pay stubs

To provide employees with accurate pay stubs, the information below is required.

Employee's total allowances
Employee's exemption status from state withholding
Employee's predominant place of employment and additional state withholding amount

Michigan wage and hour laws

Employers in Michigan are required to comply with wage and hour regulations to ensure that non-exempt employees receive fair compensation. This includes ensuring that employees are paid at least the minimum wage, properly compensated for overtime work, provided with adequate meal and rest breaks, and entitled to appropriate paid time-off benefits.

Michigan's employment law encompasses various regulations

Minimum wage
Overtime pay
Meal breaks
Rest breaks
Paid time off and leave

Michigan Minimum wage

In Michigan, businesses are legally obligated to guarantee that their employees are compensated with at least the minimum hourly wage established by statutory regulations. This requirement applies to employers with a workforce of two or more employees.

As of 2024, the basic minimum hourly rate is $10.33.

It's important to note that Michigan's state law does not encompass employment already regulated by the federal Fair Labor Standards Act unless the state minimum wage exceeds the federal rate.

Annually, the minimum wage undergoes adjustments based on a predetermined formula.

Michigan Minimum Wage update 2025 and Beyond

Michigan's minimum wage will see an increase in 2025, with a scheduled rise on January 1 and another on February 21. The wage will continue to grow annually, including adjustments for inflation starting in 2028. Additionally, the tipped employee wage will gradually rise to match the regular minimum wage over the next several years.

January 1, 2025:

Minimum Wage: $10.56 per hour
Tipped Employee Rate: $4.01 per hour
85% Rate for Minors (under 18): $8.98 per hour

February 21, 2025:

Minimum Wage: $12.48 per hour
Tipped Employee Rate: $5.99 per hour
85% Rate for Minors (under 18): $6.49 per hour
Minimum Reported Average Hourly Tips: $10.61 per hour

Future Increases:

February 21, 2026:

Minimum Wage: $13.29 per hour
Tipped Employee Rate: $7.97 per hour
85% Rate for Minors (under 18): $5.32 per hour
Minimum Reported Average Hourly Tips: $11.30 per hour

February 21, 2027:

Minimum Wage: $14.16 per hour
Tipped Employee Rate: $9.91 per hour
85% Rate for Minors (under 18): $4.25 per hour
Minimum Reported Average Hourly Tips: $12.04 per hour

February 21, 2028:

Minimum Wage: $14.97 per hour
Tipped Employee Rate: $11.98 per hour
85% Rate for Minors (under 18): $2.99 per hour
Minimum Reported Average Hourly Tips: $12.72 per hour

Tipped Employees:

Feb. 21, 2025: Tipped employees will earn 48% of the minimum wage.
Feb. 21, 2026: Tipped employees will earn 60% of the minimum wage.
Feb. 21, 2027: Tipped employees will earn 70% of the minimum wage.
Feb. 21, 2028: Tipped employees will earn 80% of the minimum wage.
Feb. 21, 2029: Tipped employees will earn 90% of the minimum wage.
Feb. 21, 2030: Tipped employees will earn 100% of the minimum wage.

Annual Adjustments:

Starting October 2028, the state will adjust the minimum wage based on inflation. The new wage will go into effect Feb, 21 of the following year.

Overtime Pay

In Michigan, overtime regulations are governed by the Michigan Improved Workforce Opportunity Wage Act. This legislation closely resembles the federal Fair Labor Standards Act (FLSA) by requiring covered, nonexempt employees to be compensated at a rate of at least one and a half times their regular pay for any hours worked beyond 40 in a single workweek.

Meal break and Rest break

In Michigan, there are currently no statutory requirements mandating breaks, meal periods, or rest periods for employees.

Paid time off and leave

Employers in Washington are required to provide employees with both mandatory and optional leave benefits.

Required Leave		Non-Required leave
paid	Unpaid	Paid or Unpaid
Sick leave - Employees may accrue one hour of paid sick leave for every 35 hours worked.	Employers may need to offer unpaid medical leave under the Family and Medical Leave Act (FMLA) or other federal laws.	Vacation leave
	Jury Duty leave	Bereavement leave
	Military leave	Holiday leave
		Voting leave

Note: Employers are required to offer emergency responsive leave and crime victim leave for their employees.

Michigan State payroll taxes 2025

In Michigan, payroll taxes are typically categorized as follows:

Michigan Personal Income Tax(PIT)
Michigan State Unemployment Insurance (UI)

Michigan Personal Income Tax(PIT)

For the tax year 2024, Michigan's state personal income tax rates fluctuate based on an individual's filing status and income level, which can include Single, Married Filing Separately, Married Filing Jointly, and Head of Household.

Michigan's individual income tax rate for 2024 is set at 4.25%.

Michigan State Unemployment Insurance (UI)

Michigan State Unemployment Insurance (UI)-gov reference,gov reference Michigan enacted the State Unemployment Tax Act (SUTA)to support individuals experiencing unemployment by providing them with unemployment benefits. This legislation enables the state to collect the essential funds required to administer unemployment insurance benefits to eligible individuals during periods of job loss.

In 2025, Michigan's State Unemployment Tax Act (SUTA) tax rate for employers with five or more years of business experience is determined by adding three components:

Chargeable Benefits: 1.1%
Account Building: 0.6%
Nonchargeable Benefits: 1.0% (or as low as 0.1%, if applicable)
Total Unemployment Tax Rate: 2.7%

Additionally, for the year 2025, the taxable wage base for SUTA in Michigan is set at $9,000.

Michigan payroll tax filing

Report of New hire Employees
Report of Independent Contractors
Michigan personal income tax filing (Form MI-1040)
Michigan Employer’s Quarterly Wage/Tax Reports(Form UIA 1028)

Report of New hire Employees

Federal law mandates that employers report all new and returning employees in Michigan to the Michigan New Hires Operation Center. This reporting must occur within 20 calendar days of the hire date. Employers utilizing electronic reporting methods can submit new hire reports in two monthly transmissions, spaced between 12 and 16 days apart. Additionally, employers obligated to provide employees with W-2 Forms must adhere to these new hire reporting obligations. Any employee receiving a W-2 Form should be reported as a new hire within 20 days of their hire date.

Report of Independent Contractors

Michigan employers are not required by law to report newly hired independent contractors, but it is encouraged and accepted practice to do so.

How to report employees and independent contractors new hire in Michigan?

Online	Mail	Fax
Employees and independent contractors New Hire Report	Address Information: Michigan New Hires Operation Center P.O. Box 85010 Lansing, MI 48908 Public Phone: 800-524-9846	Fax 1: 877-318-1659

Michigan personal income tax filing (Form MI-1040)

The Michigan Department of Treasury has officially launched the 2025 filing season and is now processing individual income tax returns.

Individuals can file their state income tax returns online, through a tax professional, or by submitting paper forms and documentation via mail. All Michigan income tax returns and payments for any taxes owed must be submitted by April 15, 2025. For reporting individual income tax, individuals should use the form MI-1040.

Michigan Employer's Quarterly Wage/Tax Reports(Form UIA 1028)

Employers must submit Employer's Quarterly Wage/Tax Reports(Form UIA 1028) to the UIA (Unemployment Insurance Agency) detailing their employees and the wages earned for each quarter. Even if there are no employees or wages to report, a quarterly report must still be filed. Failure to submit reports and payments promptly will lead to penalties and interest being applied to the account.

It's important to note that the Employer's Wage/Tax Reports must be filed online through the employer's MIWAM (Michigan Web Account Manager) account.

Reporting Period	Due Date
Quarter 1	April 25
Quarter 2	July 25
Quarter 3	October 25
Quarter 4	January 25

Have all the information handy?

With SecurePayStubs, you can calculate accurate federal and Michigan state taxes for your employees and generate pay stubs securely.

Create a paystub now

Processing payroll manually is complex

As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.

With SecurePayStubs, paystub generator, you can quickly produce pay stubs for your employees and independent contractors. This tool ensures accurate calculations for federal and Michigan state taxes, all accomplished in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.

Spend less time generating pay stubs and more on your business growth.