Payroll Compliance Guide

Michigan Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: January 2025 • 60+ requirements covered

Key Facts at a Glance

RequirementMichigan Rule
Minimum Wage$10.33/hour (2024)
Tipped Minimum$3.93/hour + tips
Overtime Threshold40 hours/week (federal FLSA)
Final Pay (Termination)Next regular payday
Final Pay (Resignation)Next regular payday
PTO Payout Required?No (unless policy requires)
Pay Frequency MandateTwice per month (manual workers)
State Income TaxYes (4.25% flat rate)
Unemployment InsuranceYes
State Disability InsuranceNo
Paid Family LeaveNo
Paid Medical Leave (ESTA)Yes (72 hrs/yr for 50+ employees)
Workers' Comp RequiredYes (3+ employees)

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Local Jurisdiction Rules

Michigan has 5 cities with local income taxes that employers must withhold: Detroit, Grand Rapids, Lansing, Flint, and Highland Park.

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Looking for a different view? Check out the Michigan Payroll Laws overview page with final paycheck, vacation payout, and wage & hour details.