Employer payroll taxes in Michigan for 2026
On top of each paycheck, a Michigan employer pays these taxes. None of them come out of the employee's pay. On a $60,000 salary they add $4,875.00 a year, so the employee costs $64,875.00.
| Employer tax | Rate | Wages taxed |
|---|---|---|
| Social Security | 6.2% | First $184,500 |
| Medicare | 1.45% | No limit |
| Federal unemployment (FUTA) | 0.6% | First $7,000 |
| Michigan unemployment (SUTA) | 2.7% for new employers | First $9,000 |
Michigan unemployment tax (SUTA)
Michigan employers pay state unemployment tax on the first $9,000 of each employee's wages in 2026. A new employer starts at 2.7%, and experienced employers pay from 0.06% to 12.2% depending on their layoff history.
New employers pay 2.7% for their first two years. New construction employers pay the construction average, 5% for 2026.
What an employee costs in Michigan
Yearly employer taxes and total cost for a single filer paid every two weeks, at the new-employer unemployment rate, for an employer with 10 employees. Benefits and workers' compensation insurance are extra.
| Salary | Employer taxes | Total cost | Added to pay | Employee take-home |
|---|---|---|---|---|
| $30,000 | $2,580.00 | $32,580 | 8.6% | $25,261 |
| $40,000 | $3,345.00 | $43,345 | 8.4% | $32,871 |
| $50,000 | $4,110.00 | $54,110 | 8.2% | $40,481 |
| $60,000 | $4,875.00 | $64,875 | 8.1% | $48,091 |
| $75,000 | $6,022.50 | $81,023 | 8% | $58,656 |
| $100,000 | $7,935.00 | $107,935 | 7.9% | $75,181 |
| $125,000 | $9,847.50 | $134,848 | 7.9% | $91,642 |
| $150,000 | $11,760.00 | $161,760 | 7.8% | $107,667 |
Withholding from Michigan paychecks
From the employee's pay you withhold federal income tax under the W-4, 6.2% Social Security, 1.45% Medicare and Michigan income tax. Employees checking their own pay can use the Michigan paycheck calculator. Running a bonus? Use the bonus payroll calculator.
Michigan employer taxes compared with nearby states
The same $60,000 employee, at each state's new-employer unemployment rate. Of the states that border Michigan, Indiana has the lowest employer taxes.
| State | State unemployment | All employer taxes | Total cost |
|---|---|---|---|
| Michigan | $243.00 | $4,875.00 | $64,875 |
| Indiana payroll calculator | $237.50 | $4,869.50 | $64,870 |
| Ohio payroll calculator | $256.50 | $4,888.50 | $64,889 |
| Wisconsin payroll calculator | $427.00 | $5,059.00 | $65,059 |
Sources
Michigan unemployment and program rates come from the state's own 2026 figures: michigan.gov, michigan.gov, michigan.gov. Federal figures follow IRS Publication 15 and Publication 15-T. See how we calculate for the withholding method.