Michigan registration and tax info

How it works

Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.

Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.

Here’s a snapshot of the process:

1. We’ll collect some basic business information from you.
2. Gusto and CorpNet will check the information for accuracy.
3. Your registration application(s) are usually submitted within 3-5 business days.
4. Check the mail for registration info—the state will typically send your tax account numbers and rates to you directly.

CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.

Get started with state tax registration

1. Sign in to Gusto as an admin.
2. Click the Taxes & compliance section and select Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state you want to register in will only appear in this location once a work address has been added in a new state and an employee has been assigned a work address in that state.
4. Review the price, process, and estimated timeline to completion.
   • We will not charge you the registration service fee until you send us your order.
5. Click Continue.
6. Answer a couple eligibility questions.
   • Note: Gusto can only register for you if you don't yet have a state account already.
7. Click Save & continue.
8. Enter some company information.
   • We’ll pre-populate the information we already have.
9. Click Save & continue.
10. Tell us about your responsible party–this is the person who is to be held accountable for the company’s good standing and a point of contact within the organization for tax purposes.
    • If you're a nonprofit and run into any issues, check out our FAQ section below for more information.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all information thoroughly–if any information is incorrect it may delay the process.
    • Heads up: State and local agencies may charge additional fees and increase the estimated turnaround time shown. CorpNet will let you know if that happens.
15. Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
16. Click Send registration order.

After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.

Check the status of your order

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:

• Reviewing registration details
• Any other state-specific instructions

Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order. 

You can also check the status in your Gusto account:

1. Head to the Taxes & compliance section and select Tax setup.
2. Scroll to the state's headline.
3. Click Check the status of your registration.

Cancel your order

If an order is already completed, you'll need to contact CorpNet at [email protected] or 1(888) 449-2638 to cancel. They’re open Monday-Friday from 7am-5pm PT.

If your order is still in progress, you can cancel from your Gusto account:

1. Head to the Taxes & compliance section and select Tax setup.
2. Scroll to the state's headline.
3. Click Check the status of your registration.
4. On the right-side of the page, under "Changed your mind?", click Cancel your order.
5. Let us know why you're canceling.
6. Click Cancel your order.

FAQs

Q: Can I run payroll for my employees before my registration is complete?

A: Not in most cases—you typically need to have a withholding account number and required tax rate(s) in Gusto before you can run payroll. 

If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.

Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet?

A: No–you must have a FEIN entered in Gusto to order a state tax registration.

Q: Where can I see all my tax information?

A: You can see all tax details in the following locations: 

• Gusto–head to the Taxes & compliance and select Tax setup, and scroll to the applicable state tax setup.
• CorpNet–create a CorpNet account and login at any time to review information.
• State online account–once you’ve gained access to your agency accounts, your tax details will also be available there.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: My company is a nonprofit and I'm unable to enter 0% in the responsible party section, what do I do?

A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.

Michigan tax agencies

• Michigan Department of Treasury - income tax withholding
• Michigan Unemployment Insurance Agency- unemployment tax

Register for income tax withholding

During the registration process you will be asked if you are using a payroll service and need a power of attorney form to be filled out. Once you enter in the MI information in your Gusto account and assign a work address to your first MI employee, we'll formulate this Power of Attorney (POA) form for you to electronically sign along with the other forms.

To register for withholding tax:

1. Head to the Department of Treasury registration and FAQ page to get started.
2. Follow their step-by-step guides to register—you may either complete the online eRegistration process through MTO or mail Form 518.
   • eRegistration is authenticated within 10-15 minutes of application submission. If mailing Form 518, allow 4-6 weeks for processing.

If you have trouble registering your business or have questions regarding the status of your application, contact the Registration Unit at (517) 636-6925.

Enter the tax account information in Gusto

Once a valid Michigan work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Michigan Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number and Save.
   • If you need to update your account number for any reason: Contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Register for unemployment tax

You'll need to register with the Michigan Unemployment Insurance Agency to receive the unemployment account numbers and tax rates—you should receive your Employer Account Numbers and rates a few days after registering. 

To register for unemployment tax:

1. Start your registration here.
2. Follow the remaining agency prompts to complete your registration.

For questions about your unemployment tax number or rate, contact the agency at (855) 484-2636, option 5.

Enter the tax account information in Gusto

Once a valid Michigan work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Michigan Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number and agency-assigned unemployment rate(s).
   • If you need to update a rate already entered: Follow the steps in this article.
   • If you need to update your account number: Contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Some agencies require special authorization for Gusto to pay or file your taxes.

To ensure successful authorization, please verify that the following information you have entered into Gusto matches what is on file with the Michigan Unemployment Insurance Agency:

• FEIN - Federal Employment Identification Number
• Unemployment Account Number (UIA)

If Gusto is having trouble gaining access to your account, please verify that the above information matches exactly what the agency has on file by giving them a call at (855) 484-2636, option 5.

Local taxes

Multiple cities in Michigan levy an income tax on residents and nonresidents who work in these specific cities. These taxes are typically 1% income tax on residents and .5% on nonresidents. The cities of Detroit, Grand Rapids, Highland Park and Saginaw have rates that differ from the rest. 

Gusto will handle the payment of these taxes but as a business owner you will need to register with the city/cities that your employees are working in—registration in each city is unique. 

By clicking on the respective city below you'll be provided with the form that needs to be mailed to that city to register. 

• Albion - download the City of Albion Employer Registration Packet under Withholding
• Battle Creek
• Big Rapids
• Detroit
  • Detroit residents are subject to City of Detroit Income Tax, but employers are only required to withhold the tax if they do business in Detroit.
  • If you don't do business in Detroit but would like to withhold this tax as a courtesy, you can register with the City of Detroit and withhold for the employee.
• East Lansing
• Flint
• Grand Rapids - download SS-4 Withholding Registration under Withholding Forms
• Grayling
• Hamtramck
• Highland Park
• Hudson- please call the city at (517) 448-8983
• Ionia
• Jackson
• Lansing
• Lapeer
• Muskegon
• Muskegon Heights - choose current year and download Tax Withholding Book
• Pontiac
• Port Huron
• Portland
• Saginaw
• Springfield
• Walker

“Predominant” work city—employee action required

If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Gusto profile. Employees must identify their predominant work city on the city's W-4 by December 1 for the next calendar year, then update their Gusto profile.

• Heads up: Employees who work and live in the same city usually select “No Predominant City.”
  • Ordinances define a predominant place of work as "...that city imposing a tax under a uniform city income tax ordinance other than the city of residence, in which the employee estimates he will earn the greatest percentage of his compensation from the employer.”

Employees can view or update the Predominant Work City in Gusto by following the steps below.

1. Sign in to their employee profile.
2. Click the Job & pay from the left-menu.
3. Scroll to the “Michigan Taxes” headline, and click edit.
4. View or edit the Predominant Work City selection—all of a company's work cities that have a Michigan local income tax will be available to choose from.
   • If the employee works more than 25% in any of the listed cities (as elected on the city W-4), select the city where the most work will be performed. Otherwise, select “No Predominant City”.

Admins can update this on MI employees' behalf by following the steps below.

If you already know the MI employee who needs a Predominant Work City update, you can access their profile from the Team Members section of your account. The below method will allow you to view all employees associated with Michigan.

1. Sign in to your admin profile.
2. Head to the Taxes & compliance section and select Tax setup.
3. Scroll to "Michigan Tax Setup" and click Manage taxes.
4. Scroll to the "Employees in Michigan" headline and click on an employee's name to go to their profile.
5. Scroll to the "Michigan Taxes" headline and click edit.
6. Select a Predominant Work City and click Save.

Third party authorization (TPA) is required

Third party authorization is required or recommended for the below agencies:

• Michigan Department of Treasury (DOT) - withholding tax:
  
  • Payments and filings
• Michigan Department of Labor and Economic Opportunity - unemployment tax
  
  • Amended returns (as needed)

Michigan Department of Treasury (DOT) - withholding tax

We'll attempt to access your Withholding Tax account online, behind the scenes.

If we're unable to get the access we need using the information we have on file, we'll notify you and request some more information—zip code, last payment amount, or most recent total tax due.

Michigan Department of Labor and Economic Opportunity - unemployment tax

Amendments often call for a different filing method than original returns—this agency requires that Gusto have third party access to your online Michigan Web Account Manager (MiWAM) in order to submit an amendment on your behalf.

1. You'll need a MI Web Account Manager online account  to get started. If you don't have one, follow the steps in this agency guide to set one up.
2. Log in to your MiWAM account.
3. From the "Home" page, under the “I Want To” section, click the Add or Update Power Of Attorney link.
4. Select the Add Power of Attorney link.
5. Add the following Power of Attorney information—most information will populate after you enter our FEIN:
   • Representative FEIN: 45-3942850
   • Representative Name: ZenPayroll, Inc. (dba Gusto)
   • Address: 525 20th Street, San Francisco, California, 94107-4345
   • Contact Name: Zenpayroll, Inc.
   • Contact Phone: (915) 781-5155
   • Email: [email protected]
6. Click the UIA checkbox and go to the next step.
7. In the "Beginning Authorization Date" field, enter the check date of the first payroll you ran in Gusto for this state. 
   • You do not need to enter an end date.
8. As the type of Power Attorney, select General Authorization.
   • Once all POA steps are completed, a check mark will appear beside the "New POA" button.
9. Click on the Next Step button.
10. Click Submit.

Income tax withholding

If you've run payroll in the past in Michigan, you can find your 9-digit MI Withholding Tax ID Number (XX-XXXXXXX) on notices you've received from the Department of Treasury.

• This number is always the same as your company's FEIN.

If you have any questions, call the agency at (517) 636-6925.

Unemployment tax account number and rate

If you've run payroll in Michigan previously you'll find your 10-digit MI UIA Account number (XXXXXX XXX) on notices that you have received from the agency.

• Important: If you have a 7-digit UIA Account number, enter 000 for the last three digits to make it 10 digits.

If you're unsure of your ID you should call the agency at (855) 484-2636, option 5.

Unemployment tax rate

Your total unemployment rate appears on the bottom right of Form UIA 1771, the Tax Rate Determination For Calendar Year notice that you receive annually from the Unemployment Insurance Agency—this rate includes the Obligation Assessment (OA) Tax.

If you're unsure of your rate you should call the agency at (855) 484-2636, option 5.

Click here to view state-by-state UI rates and wage base (not company-specific).

Enter the tax account information in Gusto

Once a valid Michigan work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Michigan Tax Setup” headline and select Manage taxes.
3. Enter your account number(s) and agency-assigned unemployment rate(s).
   • If you need to update a rate already entered: Follow the steps in this article.
   • If you need to update an account number: Contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

“Predominant” work city—employee action required

If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Gusto profile. Employees must identify their predominant work city on the city's W-4 by December 1 for the next calendar year, then update their Gusto profile.

• Heads up: Employees who work and live in the same city usually select “No Predominant City.”
  • Ordinances define a predominant place of work as "...that city imposing a tax under a uniform city income tax ordinance other than the city of residence, in which the employee estimates he will earn the greatest percentage of his compensation from the employer.”

Employees can view or update the Predominant Work City in Gusto by following the steps below.

1. Sign in to their employee profile.
2. Click the Job & pay from the left-menu.
3. Scroll to the “Michigan Taxes” headline, and click edit.
4. View or edit the Predominant Work City selection—all of a company's work cities that have a Michigan local income tax will be available to choose from.
   • If the employee works more than 25% in any of the listed cities (as elected on the city W-4), select the city where the most work will be performed. Otherwise, select “No Predominant City”.

Admins can update this on MI employees' behalf by following the steps below.

If you already know the MI employee who needs a Predominant Work City update, you can access their profile from the Team Members section of your account. The below method will allow you to view all employees associated with Michigan.

1. Sign in to your admin profile.
2. Head to the Taxes & compliance section and select Tax setup.
3. Scroll to "Michigan Tax Setup" and click Manage taxes.
4. Scroll to the "Employees in Michigan" headline and click on an employee's name to go to their profile.
5. Scroll to the "Michigan Taxes" headline and click edit.
6. Select a Predominant Work City and click Save.

Third party authorization (TPA) is required

Third party authorization is required or recommended for the below agencies:

• Michigan Department of Treasury (DOT) - withholding tax:
  
  • Payments and filings
• Michigan Department of Labor and Economic Opportunity - unemployment tax
  
  • Amended returns (as needed)

Michigan Department of Treasury (DOT) - withholding tax

We'll attempt to access your Withholding Tax account online, behind the scenes.

If we're unable to get the access we need using the information we have on file, we'll notify you and request some more information—zip code, last payment amount, or most recent total tax due.

Michigan Department of Labor and Economic Opportunity - unemployment tax

Amendments often call for a different filing method than original returns—this agency requires that Gusto have third party access to your online Michigan Web Account Manager (MiWAM) in order to submit an amendment on your behalf.

1. You'll need a MI Web Account Manager online account  to get started. If you don't have one, follow the steps in this agency guide to set one up.
2. Log in to your MiWAM account.
3. From the "Home" page, under the “I Want To” section, click the Add or Update Power Of Attorney link.
4. Select the Add Power of Attorney link.
5. Add the following Power of Attorney information—most information will populate after you enter our FEIN:
   • Representative FEIN: 45-3942850
   • Representative Name: ZenPayroll, Inc. (dba Gusto)
   • Address: 525 20th Street, San Francisco, California, 94107-4345
   • Contact Name: Zenpayroll, Inc.
   • Contact Phone: (915) 781-5155
   • Email: [email protected]
6. Click the UIA checkbox and go to the next step.
7. In the "Beginning Authorization Date" field, enter the check date of the first payroll you ran in Gusto for this state. 
   • You do not need to enter an end date.
8. As the type of Power Attorney, select General Authorization.
   • Once all POA steps are completed, a check mark will appear beside the "New POA" button.
9. Click on the Next Step button.
10. Click Submit.

What is the Michigan Form 5080/5081?

Form 5080/5081 are the monthly, quarterly, and annual forms filed by businesses operating in Michigan. These forms are combined returns, meaning they include payroll withholdings alongside sales tax reporting.

What is Gusto's role in the filing of this form?

Because this form includes reporting of sales tax and this is information that Gusto does not have, we will file this form with only the withholding tax information.

What is my role in the filing of this form?

Since Gusto will only be reporting your payroll withholding, you will need to file an additional Form 5080 / 5081 with the completed sales tax details for the amount of sales and use tax owed. If sales and use tax are not owed, enter zeros on this form for these amounts. Please leave the withholding tax portion of the form blank.

Michigan will then be able to combine the sales and use tax amounts from your filed form with the payroll withholding amounts from the form filed by Gusto.

When does this form need to be filed and how do I file it?

Form 5080 

The sales tax portion must be filed no later than the 20th of the month following the end of the return period (e.g. monthly filers must file by the 20th day of the following month and quarterly filers file by the 20th day after the end of the quarter). 

• Keep in mind: if the 20th falls on a weekend or holiday, the due date will be the business day following the weekend or holiday.

If you owe sales and use tax in Michigan, this form must be completed either by paper or electronically. If you complete it by paper you should mail it to the address below:

Michigan Department of Treasury

P.O. Box 30324

Lansing, MI 48909-7824

Form 5081

This annual form is due by the end of February, and can be filed electronically via the state website or on paper and mailed to:

Michigan Department of Treasury

P.O. Box 30401

Lansing, MI 48909-7901

If the due date falls on a weekend or holiday, the due date will be the business day following the weekend or holiday.

• Michigan Monthly/Quarterly Return (MI 5080/160)
  • Withholding portions only
• MI Sales, Use and Withholding Tax Annual Return (MI 5081)
  • Withholding portions only
• Transmittal of Mag Media reporting of W-2 (MI 447)
• Wage and Tax Statement (State W2)
• Michigan Employer's Quarterly Wage/Tax Report (SUI) (MI UIA 1028)
• Transmittal of Mag Media reporting of W-2 (MI 501 ALLIANCE)
• MI New Hire Report
• Various local returns

• Michigan Department of Treasury (517) 636-6925
• Michigan Unemployment Insurance Agency (855) 484-2636