Payroll and Benefits Guide - United States - Michigan

United States - Michigan
null

Currency

United States Dollar
null

Capital

Lansing
null

Employer Taxes

11.55% – 26.65%
null

Date Format

mm/dd/yyyy
null

Fiscal Year

1 Jan – 31 Dec

Fun Facts

Detroit, Michigan, is known as the “Motor City” because it was the birthplace of the American automobile industry.

Michigan is located in the Great Lakes region of the United States.

The state capital of Michigan is Lansing, while its largest city is Detroit.

Michigan is famous for its cherries and is one of the top producers of tart cherries in the United States.

The University of Michigan in Ann Arbor is one of the leading public research universities in the country.

Michigan has the longest freshwater shoreline of any state in the United States.

United-States-Michigan

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.60% – 10.30%
Unemployment- New Employer2.70%
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60% – 6.00%

Payroll

Payroll Cycle

Employees are paid monthly or semi-monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

In Michigan, the workweek is a maximum of 40 hours per week or 8 hours per day.

Overtime

In Michigan, the Fair Labor Standards Act (FLSA) applies, and overtime pay is given for work exceeding 40 hours per week at 150% of the regular pay. Working on weekends or rest days generally doesn’t require extra payment unless under exceptional circumstances, in which case overtime pay is also at 150% of regular pay.

United-States-Michigan

Leave

Paid Time Off

There are no statutory laws on paid time off in Indiana.

Public Holidays

There are 10 Public holidays

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

Maternity Leave

Michigan does not mandate paid maternity leave for employers. Eligible employees covered by the Family and Medical Leave Act (FMLA) may be eligible for unpaid leave provided by the federal government.

Paternity Leave

Michigan does not mandate paid Paternity leave for employers. Eligible employees covered by the Family and Medical Leave Act (FMLA) may be eligible for unpaid leave provided by the federal government.

Parental Leave

Michigan does not mandate paid Parental leave for employers. Eligible employees covered by the Family and Medical Leave Act (FMLA) may be eligible for unpaid leave provided by the federal government.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.”

Notice Period

Michigan follows an “at-will” employment policy, allowing termination without notice. There is no legal requirement for payout of unused vacation days, but employers usually compensate if given advance notice. Two weeks’ notice is commonly expected. The WARN Act mandates 60 days’ notice for mass dismissals.

Severance Pay

Except when outlined in an employment contract or collective bargaining agreement, employers are not required not make severance payments. However, many employers choose to offer severance pay and base the amount on the length of employment.

Probation Period

Probation Period

There are no provisions in the law regarding probation or trial periods. It is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security or the United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement). To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request.

For Work Permits

H-1B

H-1B1

H-2A

H-2B

L

O

VAT

Michigan has a minimum flat rate state sales tax rate of 6.00%.