The Michigan Payroll Setup Checklist: What You Need to Know

Running Michigan payroll can be a complicated affair. From withholding taxes, submitting the right payroll documents, and settling on a payroll schedule, there is a lot to manage. Fortunately, Dominion is here for you! We’ll outline the essential payroll documents you need to ensure accurate and compliant Michigan payroll.

What Michigan Tax Information Do I Need to File?

Like every state in the US, you need to register in Michigan if you have employees living and/or working in Michigan. After you’ve submitted the right information, your payroll platform will automatically file and remit Michigan taxes every payroll run.

In order to file correct tax information, you’ll need to register for your Federal Employer Identification Number (FEIN), classify your employees, determine employer taxes, and calculate how much to withhold from certain employees. For more details about these steps, read more here.

What Payroll Documents Do I Need to Submit?

If you have paid any W2 employees working for your Michigan business this calendar year, you’ll need the following documents:

  • Year-to-date payroll history report

  • Report for every check date of the current quarter, which includes:

    o   Pay period and check date

    o   Every employee paid, including terminated employees

    o   How much was paid in gross and net pay, broken down by earning types

    o   How much was paid in employer taxes (FIT, MED, SS, FICA)

    o   How much was deducted for employee taxes (FIT, MED, SS, FICA)

    o   How much was deducted for miscellaneous deductions such as insurance, 401ks, etc.

  • Summarized payroll reports for prior quarters, which includes:

    o   Every employee you paid, including terminated employees

    o   How much was paid (gross and net pay, broken down by earning type)

    o   How much was paid in employer taxes (FIT, MED, SS, FICA)

    o   How much was deducted in employer taxes (FIT, MED, SS, FICA)

  • A copy of prior quarter federal, state, and local tax filings

If you have not paid any W2 employees this calendar year, you’ll need to upload the following documents:

  • State and local tax confirmation documents, including state tax account numbers

  • Articles of incorporation

  • Principal owner’s ID

Curious about how to deal with unclaimed pay stubs, terminated employees, or pay cards? We’ve got you covered: Everything You Need to Know to Pay Your Employees in Michigan

What Are My Payroll Scheduling Options?

There are four main pay schedules to choose from: weekly, bi-weekly, semi-monthly, and monthly. The payroll schedule you choose for your employees will depend on the industry you’re in, the kind of workers you employ (contractors vs. freelancers vs. full-time employees, etc.), and how much administrative work you’re willing to tackle. Let’s break down these options:

  • Still have questions about payroll processing in Michigan? Our definitive guide has you covered.

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In addition, you’ll need to know the following information before setting up payroll in Michigan:

What earnings will you use?

  • Examples of earning codes: commissions, bonuses, double-overtime hours, holidays

What deductions and contributions will you use?

  • Examples of deduction and contribution codes: medical insurance, flex spending accounts, retirement plans, etc.

Still unsure what payroll frequency is right for your business? Check out our comprehensive article here.

After all these payroll ducks are in a row, you’ll be ready to successfully run Michigan payroll! If you still have any questions about your Michigan payroll run, give us a call or request a demo! Our dedicated account managers and client solutions team will be happy to answer any questions you have.

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