Michigan registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet does not enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet does not set this up, so you’ll have to do it yourself after registration. Work with CorpNet directly to see if they’ve set up TPA for any specific agency.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now. 

• If you're already on the state-specific registration article, scroll to see if there's an “Authorize Gusto” section below.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it'll take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• In most cases, you need to give Gusto third-party access (TPA) to your tax accounts.
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
    • If you're already on the state-specific registration article, scroll to see if there's an “Authorize Gusto” section below.
  • CorpNet may be able to help set up TPA for some state agencies. Work with them directly to see if they can help.
• Keep an eye on your mail for registration details (tax account numbers and rates).
  • Some states will send your tax account numbers and rates this way. CorpNet will tell you how you’ll get your tax account information.

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 done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Scroll to the state's section.
4. Click Check the status of your registration.

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

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

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and do not have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Click the Taxes & compliance section and select Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

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: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:

• Use today’s date as the first date the employee(s) in the new state will be paid. 
• Enter the start date of the quarter you expect to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or 1(888) 449-2638.

Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?

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

You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: In most cases, you need to give Gusto third-party access (TPA) to your tax accounts.

• Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
  • If you're already on the state-specific registration article, scroll to see if there's an “Authorize Gusto” section below.
• CorpNet may be able to help set up TPA for some state agencies. Work with them directly to see if they can help.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

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

When you register, you'll be asked if you use a payroll service provider (and need a Power of Attorney form filled out). After you assign a Michigan work address to an employee in Gusto and add your state tax account info, we'll create the POA form for you to e-sign.

Register for withholding tax

1. Go to the Department of Treasury registration and FAQ page.
2. Follow their step-by-step guides to register. You can register online using Michigan Treasury Online (MTO), or mail Form 518.
   • MTO online registration is authenticated 10–15 minutes after you submit.
   • If you mail Form 518, allow 4–6 weeks for processing.

If you have registration questions or want to know about the status of your application, call the Registration Unit at (517) 636-6925.

Third-Party Authorization (TPA) reminder

Gusto needs third-party authorization so we can pay and file your withholding taxes. We'll attempt to get that authorization ourselves in your Withholding Tax account online. If we run into any issues, we'll notify you and ask for some additional information, like zip code, last payment amount, or most recent total tax due.

Enter the tax account information in Gusto

After a work address in Michigan is assigned to one or more employees, 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. Next to "Withholding ID/Taxpayer ID" click Edit to enter your withholding account number. 
   • This is usually your Federal Employer Identification Number (FEIN). Check communication from the agency to confirm. 
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
4. Next to “Filing Frequency” click Edit and tell us what frequency the agency assigned you. If you do not know it yet, choose weekly (the fastest option), and then update it once it's assigned.

After you register, you should get your Employer Account Number and unemployment tax rates in a few days.

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. 

1. Go to the Unemployment Insurance Agency website. 
2. Scroll to the “Employer Services” headline. 
3. Click Register a business (direct link here). 
4. Click the Start eRegistration button to begin the eRegistration process.
5. Review what you'll need to register, and click Next step when you're ready.
6. Complete all prompts and submit your application.

For questions about your unemployment tax number or rate, call the agency at (855) 484-2636, option 4.

Enter the tax account information in Gusto

After a work address in Michigan is assigned to one or more employees, 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. Next to "UIA Employer Account Number" click Edit and enter your unemployment tax account number. 
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
4. Next to "Unemployment Insurance Total Tax Rate" click Edit and enter your total tax rate for unemployment.
   • Learn how to update your rate.

Third Party Authorization (TPA) reminder

The MI Unemployment Insurance Agency requires that Gusto have third-party authorization (TPA) to pay and file your taxes. We'll try to get the authorization we need without you. In the meantime, make sure the information you entered in Gusto matches what's on file with the agency, specifically the:

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

If we run into any issues, we'll let you know. Troubleshoot the issue with the agency by calling them at (855) 484-2636, option 4.

Michigan local taxes are based on where an employee works and lives. However, employers only have to deduct and send in the taxes for the place where the employee works (where the wages were earned).

Every employer must withhold taxes if they:

• Have a business location in the city, or
• Do business in the city, even without a physical location there.

If a business is in a city with a local income tax, they must withhold taxes from:

• All employees who live in the city, even if they work outside the city, and;
• All employees who do not live in the city but mainly work there.

Local tax registration resources

Gusto pays these taxes, but as the business owner, you need to register with the cities where your employees work. Each city's registration is different.

Click a city name below to find the form to mail for registration. Head to the Department of Treasury for other forms, or for questions. 

• Albion
  • Download the "City of Albion Employer Registration Packet" under “Withholding.”
• Battle Creek—learn more about this local income tax, and when you're ready, use the steps below to register. 
  1. Businesses can start their registration here.
  2. On the right side of the page, under "Withholding Tax Filing and Payments," click Pay or File Online. 
  3. Do not enter anything in the "Look Up Account" section, and instead, click Request an Account (at the bottom-right of the page).
• Big Rapids
• Detroit
  • People who live in Detroit have to pay the City of Detroit income tax, but employers only have to withhold the tax if they do business in Detroit. If you do not do business in Detroit but want to withhold this tax as a courtesy, you can register with the City of Detroit to do so.
• East Lansing
• Flint
• Grand Rapids
  • Download "SS-4 Withholding Registration" under "Withholding Forms."
• Grayling
• Hamtramck
• Highland Park
• Hudson
  • Call the city at (517) 448-8983.
• Ionia
• Jackson
• Lansing
• Lapeer
• Muskegon
• Muskegon Heights
  • Choose the current year and download "Tax Withholding Book".
• Pontiac
• Port Huron
• Portland
• Saginaw
• Springfield
• Walker

Many cities in Michigan charge an income tax on people who live or work there. Usually, it's 1% for residents and 0.5% for nonresidents.

• Heads up: Detroit, Grand Rapids, Highland Park, and Saginaw have different rates. Check the full list of cities in Michigan with their tax rates.

If you have several business locations in Michigan, each employee will have a "Predominant Work City" field in their Gusto profile.

Put simply, a predominant work city is the city where the employee thinks they'll earn the most money from their job.

• The actual definition reads: "...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."

Employee action required

Employees must choose their predominant work city on the city's W-4 by Dec 1 for the next year, then update their Gusto profile.

There are a few cases where an employee may not have an option to select a predominant work city in Gusto, or where a predominant work city does not technically exist:

• The employee works and lives in the same city.
  • No action needed.
  • Predominant work city only applies to work done outside the city they live in.
  • If asked for a predominant work city, employees can choose "No Predominant City."
• There's only one Michigan work location for an employer.
  • No action needed.
  • If asked for a predominant work city, employees can choose "No Predominant City."
• An employee works in no place more than 25% of the time.
  • In this case, the local tax goes to the home location. Contact Gusto to set this up correctly.

Employees can view or update their "Predominant Work City" in Gusto

1. Sign in to Gusto.
2. Click My profile and select Taxes.
3. Scroll to the “Michigan Taxes” section and click edit.
4. View or edit the Predominant Work City selection. All work cities with a Michigan local income tax will be available to choose from.
   • If the employee works more than 25% in any listed city (as elected on the city W-4), select the city where the most work will be done.

Admins can update this for employees

Click the People section and find the profile of the team member you want to make the update for.

If you need to view all Michigan employees to find the person who needs the update:

1. Sign in to Gusto.
2. Click 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" section and click on an employee's name to go to their profile.
5. Scroll to the "Michigan Taxes" section and click edit.
6. Select a Predominant Work City and click Save.

Withholding ID/Taxpayer ID

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

This number is always the same as your company's Federal Employer Identification Number (FEIN). Enter your FEIN in the "Withholding ID/Taxpayer ID" field in Gusto.

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

UIA Employer Account Number

If you've run payroll in Michigan before, you can find your 10-digit "UIA Employer Account Number" (XXXXXX XXX) on letters from the Unemployment Insurance Agency.

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

If you do not know your account number, call the agency at (855) 484-2636, option 4.

Unemployment insurance total tax rate

Your total unemployment tax rate is on the bottom right of Form UIA 1771, which is the "Tax Rate Determination For Calendar Year" notice you get every year from the Unemployment Insurance Agency. This rate includes the Obligation Assessment (OA) Tax.

If you do not know your rate, call the agency at (855) 484-2636, option 4.

If you do not have your rate yet, enter the new employer rate for Michigan in Gusto for now. Update the rate once you get it.

Many cities in Michigan charge an income tax on people who live or work there. Usually, it's 1% for residents and 0.5% for nonresidents.

• Heads up: Detroit, Grand Rapids, Highland Park, and Saginaw have different rates. Check the full list of cities in Michigan with their tax rates.

If you have several business locations in Michigan, each employee will have a "Predominant Work City" field in their Gusto profile.

Put simply, a predominant work city is the city where the employee thinks they'll earn the most money from their job.

• The actual definition reads: "...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."

Employee action required

Employees must choose their predominant work city on the city's W-4 by Dec 1 for the next year, then update their Gusto profile.

There are a few cases where an employee may not have an option to select a predominant work city in Gusto, or where a predominant work city does not technically exist:

• The employee works and lives in the same city.
  • No action needed.
  • Predominant work city only applies to work done outside the city they live in.
  • If asked for a predominant work city, employees can choose "No Predominant City."
• There's only one Michigan work location for an employer.
  • No action needed.
  • If asked for a predominant work city, employees can choose "No Predominant City."
• An employee works in no place more than 25% of the time.
  • In this case, the local tax goes to the home location. Contact Gusto to set this up correctly.

Employees can view or update their "Predominant Work City" in Gusto

1. Sign in to Gusto.
2. Click My profile and select Taxes.
3. Scroll to the “Michigan Taxes” section and click edit.
4. View or edit the Predominant Work City selection. All work cities with a Michigan local income tax will be available to choose from.
   • If the employee works more than 25% in any listed city (as elected on the city W-4), select the city where the most work will be done.

Admins can update this for employees

Click the People section and find the profile of the team member you want to make the update for.

If you need to view all Michigan employees to find the person who needs the update:

1. Sign in to Gusto.
2. Click 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" section and click on an employee's name to go to their profile.
5. Scroll to the "Michigan Taxes" section and click edit.
6. Select a Predominant Work City and click Save.

After a work address in Michigan is assigned to one or more employees, 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. Click Edit to enter your account numbers and agency-assigned unemployment rates.
   • Learn how to update your rate.
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

Gusto needs third-party authorization so we can pay and file your withholding taxes. We'll attempt to get that authorization ourselves in your Withholding Tax account online.

If we run into any issues, we'll notify you and ask for some additional information, like zip code, last payment amount, or most recent total tax due.

Amendments usually need a different filing method than original returns. This agency needs Gusto to have third-party access to your online Michigan Web Account Manager (MiWAM) to submit an amendment for you.

1. You'll need a MI Web Account Manager online account.
   • If you do not have one, set one up following the agency's instructions. 
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.
   • If you get stuck, review the screenshots to "Add or Update Power of Attorney" starting on page 8 of this agency resource. 
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 today's date—you do not need to enter an end date.
8. As the type of Power of Attorney, select Limited Authorization.
9. Use the answers below for the next questions about specific authorization: 
   • For "1. Inspect or receive confidential information": Select Yes.
   • For "2. Represent me and make oral/written presentation of fact or argument": Select Yes.
   • For “3. Sign returns”: Select Yes.
   • For "4. Enter into agreements": Select No.
   • For "5. Receive Mail": Select No, for all form types.
10. Look for a check mark beside the “New POA” button—this will appear once all POA steps are completed.
11. Click on the Next Step button.
12. Click Submit.