Quick Facts
| Item | Value | Notes |
|---|---|---|
| Minimum Wage | $13.73/hr | $13.73/hr (Jan 1, 2026) |
| Pay Frequency | Twice monthly | |
| Overtime Rules | 1.5x after 40 hrs/week; live-in exempt | |
| Record Retention | 3 years |
State Income Tax
Withholding Form: MI-W4
Unemployment Insurance
Registration: Register online
Workers' Compensation
Threshold: 35+ hrs/week for 13+ consecutive weeks
Paid Sick Leave
Accrual Rate: 1hr/30hrs worked
Annual Cap: 40 hrs paid + 32 hrs unpaid
Yes -- 1hr/30hrs; 40 hrs paid + 32 hrs unpaid (eff Feb 21, 2025)
New Hire Reporting
Required Forms
Form MI-W4
Michigan state income tax withholding form
Purpose: Employee completes for state tax withholding
Key Deadlines
| Deadline | Date | Description | Frequency |
|---|---|---|---|
| New Hire Reporting | Within 20 days of hire | Report new employees within 20 days to the state | at-event |
State Agencies
Sources
Frequently asked
- Do I owe nanny tax in Michigan?
- If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Michigan state unemployment kicks in once you exceed the state's wage threshold — typically the first $9,000 of wages.
- What is the Michigan SUI rate for a new household employer?
- New household employers in Michigan start at 2.7%, applied to the first $9,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
- How much state income tax do I withhold for a Michigan nanny?
- Michigan applies a flat 4.25% state income tax. You withhold this from each paycheck after applying any state standard deduction or exemptions based on your employee's state withholding certificate.
- What forms do I need to file for a household employee in Michigan?
- Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Michigan: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Michigan state portals.