Michigan Employer Tax Information
To sign up for Square’s online payroll services in Michigan, you must be registered with the Michigan Department of Treasury and Michigan Unemployment Insurance Agency so we can pay and file your state taxes.
|Agency||Required Tax Information||Format|
|Michigan Department of Treasury||Michigan Withholding Account Number||00-0000000 (9 digits)|
|Michigan Filing Frequency||Monthly, Quarterly, Annually, or Accelerated|
|Michigan Unemployment Insurance Agency||Michigan UIA Employer Account Number||0000000 (7 digits)|
|Michigan Computed Rate||X.XX%|
|Michigan Obligation Assessment Rate||X.XX%|
Michigan Tax Account Numbers
Michigan Withholding Account Number and Filing Frequency
- If you are a new business, register online with the Michigan Department of Treasury. This number will match your Federal EIN and your application will be processed within 5-10 minutes.
- If you are already registered with the Michigan Department of Treasury, you can find your Michigan Withholding Account Number and Filing Frequency online or by contacting the Michigan Department of Treasury at 517-636-6925.
Michigan UIA Employer Account Number
- If you are a new business, register online to retrieve your Michigan UI Employer Account Number.
- If you already have a Michigan UIA Employer Account Number, look this up online or find it on correspondence received from the Michigan Unemployment Insurance Agency. If you are unsure, contact the agency at 855-484-2636 or OEO@michigan.gov.
Michigan Unemployment Contribution Rate
- The Total Rate is a combination of the Computed Rate and Michigan Obligation Assessment Rate. The Computed Rate for most new employers is 2.7%. You can find this on the Tax Rate Determination mailed by the Michigan Unemployment Insurance Agency each year.
- If you are unsure, contact the agency at 855-484-2636 or OEO@michigan.gov.
Michigan Payroll Tax Details
Square Payroll processes the following per the frequency below to the listed state agencies:
|Michigan Department of Treasury||Withholding Tax Payment||After Every Pay Run|
|Sales, Use and Withholding Taxes Return (Form 5080)
Note: Square Payroll will only submit the Withholding section of this return. You are responsible for filing the Sales and Use Tax portions of Form 5080.
|Monthly or Quarterly|
|Sales, Use and Withholding Taxes Annual Return (Form 5081)
Note: Square Payroll will only submit the Withholding section of this return. You are responsible for filing the Sales and Use Tax portions of Form 5081.
|Wage and Tax Statement (W-2)||Annually|
|Michigan Unemployment Insurance Agency||Employer’s Quarterly Wage/Tax Report (UIA 1028)||Quarterly|
|Michigan Department of Human Services||New Hire Report||As Needed|
Additional Information Regarding Form 5080 / 5081
Forms 5080 and 5081 are combined returns used to report sales tax, use tax, and income tax withholding. Square Payroll is only able to report the withholding section of this return as we do not have the necessary information to file the sales and use tax portions. You will need to file an additional Form 5080 / 5081 with the owed sales and use tax amounts. If sales and use tax are not owed, you can enter zeros for these amounts. Additionally, please leave the withholding tax portion of the form blank as Square Payroll will be filing this for you. The Michigan Department of Treasury will then be able to combine the form you filed with the one that Square Payroll filed on your behalf.
Michigan City-Level Payroll Tax Details
Michigan City-Level Tax Exemptions
If you reside in one of the 23 Michigan cities that levy a city-level income tax, you will need to specify tax allowances for both your Residence City and Employment City, similar to the way you specify tax allowances for state-level income tax.
If you are an employee and live and/or work in a city that does not have a city tax, enter zeros in both fields of the Michigan Local Tax section of your Payroll dashboard when setting up your account.
Michigan cities with a city-level income tax:
- Albion City
- Battle Creek City
- Benton Harbor City
- Big Rapids City
- Detroit City
- Flint City
- Grand Rapids City
- Grayling City
- Hamtramck City
- Highland Park City
- Hudson City
- Ionia City
- Jackson City
- Lansing City
- Lapeer City
- Muskegon City
- Muskegon Heights City
- Pontiac City
- Port Huron City
- Portland City
- Saginaw City
- Springfield City
- Walker City
Square Payroll processes the following per the frequency below to the listed city agencies:
|Michigan Department of Treasury||City of Detroit Withholding Tax Payment||After Every Pay Run|
|City of Detroit Income Tax Withholding Monthly Return (Form 5323)||Annually|
|City of Detroit Income Tax Withholding Annual Reconciliation (Form 5321)||Annually||City of Hudson||City of Hudson Quarterly Withholding Filing||Quarterly|
|City of Hudson Annual Reconciliation Filing||Annually|
|Multiple Cities||Employer’s Monthly Deposit of Income Tax Withheld (CF-501)||Monthly|
|Employer’s Quarterly Return of Income Tax Withheld (CF-941)||Quarterly|
|Employer’s Annual Reconciliation of Income Tax Withheld (CF-W-3)||Annually|
|Wage and Tax Statement (W-2)||Annually|