Michigan Hourly Paycheck Calculator

Michigan Payroll Taxes

Typical Michigan paychecks include federal income tax, Social Security, Medicare, Michigan state income tax, and—depending on worksite/residency—city income tax in certain municipalities. Employers also fund Michigan unemployment insurance (SUTA), FUTA, workers’ compensation, and maintain required notices and records. Pretax benefits—401(k)/403(b)/457(b), HSA, FSA, commuter, and eligible insurance premiums—can reduce taxable wages when plan-eligible.

• Employee (federal): Income tax (IRS W-4), Social Security, Medicare, Additional Medicare for high earners.
• Employee (state/local): Michigan state withholding (MI-W4 elections) and possible city income tax (resident/nonresident rates vary by city).
• Employer: Michigan SUTA; FUTA; workers’ compensation; local registrations where applicable.
• Pretax deductions: May lower federal/state/local taxable wages and, when eligible, FICA.

How Your Michigan Paycheck Works

Your net pay equals gross wages (regular, overtime, differentials, tips, bonuses) minus pretax deductions, then minus FICA, federal income tax, Michigan state withholding, and any applicable city income tax. The calculator itemizes hours, rates, taxable wages, withholdings, deductions, and final take-home pay.

• Inputs: Hourly rate, hours, overtime, tips, pay frequency, filing status, dependents/credits, city/residency, deductions.
• Outputs: Line-by-line FICA, federal, MI state, city (if any), deductions, and estimated net pay.
• Supplemental pay: Compare flat vs. aggregate federal methods for bonuses/commissions.

Michigan Employer SUTA — 10 Years

Replace placeholders with official Michigan UIA figures (taxable wage base, experience-rated range, new-employer rate) before publishing.

Michigan Salary Threshold

Michigan follows FLSA plus state rules. Exempt status requires passing the duties tests and meeting the salary-basis threshold; job titles alone do not confer exemption. Confirm statewide minimum wage, tip credit/service charge rules, paid sick leave requirements for covered employers, and industry-specific standards when classifying roles and calculating overtime.

Median Household Income — Michigan — 10 Years

Insert the latest U.S. Census/ACS one-year (or five-year) estimates before publishing.

FICA in Michigan

FICA is federal and applies in Michigan: employees pay Social Security and Medicare; employers match both. Above a federal threshold, Additional Medicare tax is withheld from employees (no employer match). Eligible pretax benefits (e.g., Section 125 health premiums) may reduce FICA-taxable wages depending on plan rules.

Local Income Taxes

50-word summary: Several Michigan cities levy a local income tax with different rates for residents and nonresidents. Employers must withhold based on worksite and employee residency. Many municipalities have no wage tax. Confirm your city’s current ordinance and residency rules when estimating paychecks.

Illustrative City Income Tax Table (verify current rates)

Michigan Wage & Hour Laws

• Overtime: Most non-exempt workers earn 1.5× regular rate after 40 hours/week (FLSA baseline; state specifics may apply).
• Pay frequency: Employers must pay on a regular schedule (biweekly or semimonthly) with itemized wage statements.
• Leave rules: Michigan’s paid medical leave law covers eligible employers—verify coverage, accrual, and usage requirements.

Additional Michigan Forms

• IRS Form W-4 (federal withholding)
• Michigan Form MI-W4 (state withholding)
• City income tax forms (resident/nonresident)
• Form I-9; Michigan new-hire reporting
• Direct deposit authorization; benefits enrollment (401(k), HSA, FSA, insurance)
• Michigan unemployment (employer) registration; required posters

FAQs: Michigan Hourly Paycheck Calculator

How do I use the calculator?

Enter hourly rate, hours, overtime, tips, pay frequency, filing status, dependents/credits, city/residency, and pretax/post-tax deductions. The calculator applies FICA, federal, MI state, and city withholding to produce a detailed take-home estimate.

Why is there a city income tax on my paycheck?

Some Michigan cities levy a wage/income tax with different resident/nonresident rates. If your worksite or residency triggers it, your employer withholds and remits to that city.

Which form controls MI state withholding?

Form MI-W4, alongside IRS W-4. Keep residency and exemptions current for accurate state and local withholding.

How to enter overtime, tips, bonuses?

Use proper multiplier for overtime (1.5× after 40 hours). Enter differentials, tips, and supplemental wages separately for accurate federal, state, and city withholding.

Why did my paycheck change?

Reasons: variable hours/tips, overtime, bonuses, W-4/MI-W4 updates, benefits changes, or city tax residency changes.

Does the calculator work for nonresidents?

Yes. Michigan state withholding applies to Michigan-sourced wages; some cities also withhold a nonresident city tax when working within city limits.

Can pretax benefits increase take-home?

Yes. Eligible pretax deductions—401(k)/403(b)/457(b), HSA, FSA, commuter, and certain insurance—reduce taxable wages and may lower tax and FICA.

How are tips treated?

Reported tips are taxable for federal, FICA, MI state, and city income tax if applicable.

How do multiple jobs affect withholding?

Follow IRS guidance and ensure MI-W4 reflects your situation. Model each job separately, especially if only one is in a city with income tax.

What is Additional Medicare tax?

Applies above federal threshold; no employer match; appears with regular Medicare on stub.

Are bonuses and commissions taxed differently?

Employers may use flat or aggregate federal method; Michigan state and city withholding apply.

Can the calculator project annual take-home?

Yes. Multiply weekly hours by 52, add expected overtime/tips/bonuses, then run estimate with pay frequency, city/residency, and deductions for annual net pay.