Michigan registration and tax info

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

During registration, you'll be asked if you're using a payroll service and need a power of attorney form to be filled out. Once you've assigned a MI work address to your first MI employee, and entered MI tax account information in Gusto, we'll generate the Power of Attorney (POA) form for you to electronically sign.

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.

Reminder

Third-party authorization is required so we can pay and file your withholding taxes. 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.

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 or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

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. 

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 or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Verify account information is accurate in Gusto

Some agencies require special authorization for Gusto to pay or file your taxes. To make sure we have authorization, make sure the following information you entered in Gusto matches what's on file with the Michigan Unemployment Insurance Agency:

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

If we're having trouble gaining access to your account, call the agency to troubleshoot at (855) 484-2636, option 5.

Michigan local taxes are assessed based on where an employee works, and where they live. However, it's only mandatory for employers to deduct and remit the taxes for the locality where the wages are earned (where they worked).

Every employer is required to withhold taxes if they:

• Have a location in the city, or;
• Are doing business in the city (even if the employer has no location in the city). 

If an employer is doing business in a city with a local income tax, they're required to withhold from the following employees:

• All residents of the city, whether they work inside the city; and
• All nonresidents of the city who have the city as their predominant place of employment.

Local tax registration resources

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

Click a city name below to find the form that needs to be mailed to that city to register—the most up-to date registration form resources can be found on the Department of Treasury website.  

• Albion
  • Download the "City of Albion Employer Registration Packet" under “Withholding”.
• Battle Creek
• Big Rapids
• Detroit
  • Detroit's residents are subject to the 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
  • 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

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 0.5% on nonresidents.

• Heads up: The cities of Detroit, Grand Rapids, Highland Park and Saginaw have rates that differ from the rest. Check out the full list of cities in Michigan that impose a tax, and their tax rates.

If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Gusto profile. 

• A predominant place of work is defined 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.”

Employee action required

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.

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 doesn't technically exist:

• The employee works and lives in the same city—no additional action needed.
  • Predominant work city only applies to work completed outside the city they live in.
  • If prompted for a predominant work city, employees can select “No Predominant City".
• There's only one Michigan work location for an employer—no additional action needed.
  • If prompted for a predominant work city, employees can select “No Predominant City".
• An employee works in no place more than 25% of the time. When this happens, the local withholding is allotted to only the home location—you'll want to contact Gusto to have us set this up correctly. 

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

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. 

Admins can update this on employees' behalf

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.

To view all employees associated with Michigan, to find the employee profile that needs updating:

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.

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.

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

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

Unemployment tax account number

If you've run payroll in Michigan in the past, you'll find your 10-digit MI UIA Account number (XXXXXX XXX) on notices that you've 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, 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, call the agency at (855) 484-2636, option 5.

Click here to view general state-by-state unemployment tax rates and wage bases (not company-specific).

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 0.5% on nonresidents.

• Heads up: The cities of Detroit, Grand Rapids, Highland Park and Saginaw have rates that differ from the rest. Check out the full list of cities in Michigan that impose a tax, and their tax rates.

If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Gusto profile. 

• A predominant place of work is defined 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.”

Employee action required

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.

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 doesn't technically exist:

• The employee works and lives in the same city—no additional action needed.
  • Predominant work city only applies to work completed outside the city they live in.
  • If prompted for a predominant work city, employees can select “No Predominant City".
• There's only one Michigan work location for an employer—no additional action needed.
  • If prompted for a predominant work city, employees can select “No Predominant City".
• An employee works in no place more than 25% of the time. When this happens, the local withholding is allotted to only the home location—you'll want to contact Gusto to have us set this up correctly. 

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

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. 

Admins can update this on employees' behalf

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.

To view all employees associated with Michigan, to find the employee profile that needs updating:

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.

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 or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Third-party authorization is required so we can pay and file your withholding taxes.

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.

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

1. To get started, you'll need a MI Web Account Manager online account—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 of 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.