Pay-statement requirements
Michigan’s Payment of Wages and Fringe Benefits Act requires a retainable statement indicating hours worked, gross wages paid, itemized deductions, and the dates for which wages are paid.
See details →MICHIGAN PAYROLL RESOURCES · MI · REVIEWED 2026-10-03
Michigan Payroll &
Pay Statement Guide
Review Michigan pay-statement requirements, current withholding guidance, unemployment-insurance rates, workers’ compensation rules, and city income-tax resources for payroll preparation. Run payroll for a small team and get employee statements from every calculated run.
Retainable statement requiredMichigan requires employees to receive a retainable pay statement with specified wage information.
Official-source guideBased on Michigan wage, tax, unemployment, workers’ compensation, and city-tax resources.
Reviewed 2026-10-03Checked against current official sources.
AT A GLANCE
What distinguishes Michigan pay-period records
Michigan requires employees to receive a retainable pay statement showing specified wage information. Payroll preparation also needs to account for Michigan income-tax withholding, unemployment insurance, workers’ compensation coverage, and—in 24 Michigan cities—potential city income-tax obligations that can depend on residence and work location.
State income-tax withholding
For 2026, Michigan lists a 4.25% withholding rate and a $5,900 personal-exemption amount. Employers should use the current Michigan withholding guide and employee withholding certificate.
View withholding details →Unemployment insurance (UI)
Michigan’s 2026 new-employer unemployment rate is 2.7%; the construction rate is 5.0%. Experienced-employer rates vary according to the state’s UI experience-rating components.
View UI information →Workers’ compensation
Michigan coverage can be triggered by one employee working at least 35 hours per week for 13 weeks in the prior 52 weeks, or by regularly employing three or more employees at one time, with additional rules for agriculture, domestic service, and public employers.
View official guidance →STATE PAYROLL OVERVIEW
What makes Michigan different from other pay-statement jurisdictions
Michigan’s Payment of Wages and Fringe Benefits Act requires an employee to receive a retainable pay statement indicating hours worked, gross wages paid, itemized deductions, and the dates for which the wages are paid. That creates a clear employee-facing record requirement without requiring employers to mimic another state’s pay-stub format.
Michigan payroll is also notable for its local-income-tax layer. The Michigan Department of Treasury states that 24 Michigan cities levy taxes related to income. Detroit is administered through the Michigan Department of Treasury, while most other taxing cities administer their own city tax forms, filing, and payment requirements.
That means an employer preparing Michigan payroll should review both the statewide wage-and-tax framework and the employee’s city-tax exposure when the residence or work location is in a taxing city.
PAYROLL REQUIREMENTS CHECKLIST
The Michigan requirements checklist
Use this checklist to review Michigan’s employee-facing pay-statement requirement and the separate payroll obligations that can affect the pay period.
When a statement is required
Provide the employee with a retainable pay statement when wages are paid in accordance with Michigan’s Payment of Wages and Fringe Benefits Act.
Information to include
The statement should indicate hours worked, gross wages paid, an itemization of deductions, and the dates for which the wages are paid. Maintain the underlying payroll records needed to support those figures.
Income tax withholding
For 2026, use Michigan’s 4.25% withholding rate, $5,900 personal-exemption amount, current withholding guide, and the employee’s applicable Michigan withholding certificate.
Other employer obligations
Review Michigan unemployment insurance, workers’ compensation coverage, applicable paid-leave and wage-record rules, and any city income-tax withholding that applies to the employee’s residence or work location.
PAYROLL RECORDS IN PRACTICE
How Michigan treats payroll records after payday
Retainable employee statement
Michigan requires the employee to receive a pay statement that can be retained. The statement should make the required hours, gross-wage, deduction, and pay-period information available to the employee in a form that can be kept for later review.
Employer recordkeeping
Michigan wage-and-hour guidance instructs employers to keep required records for at least three years. The records should support the hours, wages, deductions, pay-period information, and other wage-and-hour details applicable to the employee.
USE CURRENT MICHIGAN WITHHOLDING INFORMATION
Use Michigan’s 2026 rate, exemption amount, and withholding guide
For 2026, the Michigan Department of Treasury lists a 4.25% withholding rate and a $5,900 personal-exemption amount. The 2026 Michigan Income Tax Withholding Guide explains employer withholding responsibilities and should be used with the employee’s current withholding information.
2026 Michigan Withholding Information
Confirm the current calendar-year withholding rate and personal-exemption amount before preparing the pay period.
View 2026 information →2026 Michigan Income Tax Withholding Guide
Use the current guide for employer withholding rules, calculation guidance, resident and nonresident treatment, and payroll administration.
View withholding guide →LOCAL CONSIDERATIONS
Michigan city income taxes can change the payroll setup
The Michigan Department of Treasury identifies 24 cities that levy taxes related to income. City payroll treatment therefore can depend on both where the employee lives and where the employee performs services. Detroit is administered by the Michigan Department of Treasury; most other taxing cities administer their own city-tax programs.
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Detroit residentsDetroit’s 2026 withholding guide uses a 2.4% resident rate. Employers with Detroit-resident employees should review the City’s withholding rules even when the employee performs services outside Detroit because resident compensation can remain subject to Detroit tax under the City’s rules.
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Detroit nonresidentsDetroit’s 2026 nonresident withholding rate is 1.2% on compensation attributable to services performed in Detroit. When a nonresident works only part of the time in Detroit, the City’s guide bases withholding on the portion of compensation earned in the city.
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Remote work in DetroitMichigan Treasury states that an employer can have a Detroit withholding obligation when employees work remotely from a location in Detroit. Work location therefore matters even when the employer’s main office is elsewhere.
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Other Michigan taxing citiesMichigan lists 23 other cities in addition to Detroit that levy taxes related to income, including Grand Rapids, Lansing, Flint, Battle Creek, Saginaw, Pontiac, and others. Those cities generally administer their own tax forms and requirements, so verify the employee’s applicable city directly.State city-tax directoryDetroit 2026 withholding guide
A SOURCE-BACKED WORKFLOW
A source-backed workflow for Michigan payroll records
1Confirm residence and work locationIdentify where the employee lives and performs services so Michigan state withholding and any applicable city income-tax requirement can be reviewed.›
2Enter employer and employee detailsAdd the employer, pay period, pay date, employee information, hours, earnings, withholding setup, deductions, and any city-tax information that applies.›
3Review calculationsReview gross wages, Michigan and federal withholding, applicable city withholding, deductions, unemployment-related employer inputs, and net pay before completing the Pay Run.›
4Generate the recordsComplete the Pay Run and generate a retainable employee statement and bookkeeping package showing the pay-period information and deductions.›
5Retain supporting recordsKeep the employer’s wage-and-hour records for the required period and retain the information needed to support state and city withholding, deductions, and the employee statement.›
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OFFICIAL MICHIGAN SOURCES USED FOR THIS PAGE
Official Michigan sources used for this page
This guidance is based primarily on Michigan government resources. Wage rules, withholding information, unemployment rates, workers’ compensation thresholds, and city taxes can change, so recheck the applicable source before acting.
01
Michigan LEO · Payment of Wages and Fringe Benefits Act
Official wage-payment guidance describing the retainable pay statement and required wage information.
02
Michigan Department of Treasury · 2026 Withholding Information
Current 4.25% withholding rate and $5,900 personal-exemption amount.
03
Michigan Unemployment Insurance Agency · UI Taxes
2026 new-employer, construction, minimum, maximum, and experience-rated UI information.
04
Michigan Workers’ Disability Compensation Agency
Employer coverage thresholds for full-time, part-time, agricultural, domestic, and public employment.
05
Michigan Department of Treasury · City Income Taxes
Official list of the 24 Michigan cities that levy municipality taxes related to income and links to administering authorities.
RESEARCH & REVIEW
Built from primary sources. Reviewed for accuracy.
This page is built from primary Michigan state and city-tax government sources and is periodically reviewed against current agency guidance. We use official wage, tax, unemployment, workers’ compensation, and municipal-tax resources whenever available.
FREQUENTLY ASKED QUESTIONS
Michigan pay-statement FAQ
Does Michigan require a pay statement?
Yes. Michigan’s Payment of Wages and Fringe Benefits Act requires an employee to receive a retainable pay statement indicating hours worked, gross wages paid, itemized deductions, and the dates for which the wages are paid.
How long should Michigan payroll records be kept?
Michigan wage-and-hour guidance instructs employers to keep required records for at least three years. Employers should retain the information supporting hours, wages, deductions, pay periods, and other applicable wage-and-hour requirements.
What Michigan withholding rate applies for 2026?
The Michigan Department of Treasury lists a 4.25% withholding rate and a $5,900 personal-exemption amount for 2026. Employers should use the current withholding guide and employee withholding information when calculating the actual pay period.
What is Michigan’s unemployment rate for a new employer in 2026?
Michigan lists a 2.7% new-employer unemployment rate for 2026 and a 5.0% construction rate. Experienced-employer rates vary based on the state’s experience-rating components.
When is workers’ compensation required in Michigan?
Michigan generally requires coverage when a private employer regularly employs one or more employees for at least 35 hours per week for 13 weeks or longer during the preceding 52 weeks, or when it regularly employs three or more employees at one time. Additional rules apply to agriculture, domestic service, and public employers.
Do Michigan cities have their own income taxes?
Yes. Michigan Treasury identifies 24 cities that levy taxes related to income. Detroit uses a 2.4% resident and 1.2% nonresident rate in its 2026 withholding guide, while most other taxing cities administer their own city-tax requirements.
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Use accurate records, review the preview, and keep the supporting evidence.
Prepare a Michigan Pay Run, review the state and city calculations before completion, and keep the applicable Michigan sources with your payroll workflow.