The Michigan Department of Treasury recently released their revised 2018 wage-bracket withholding tables along with an updated 2018 Michigan Income Tax Withholding Guide effective with wages paid on and after March 1, 2018. The supplemental withholding rate remains at 4.25% for 2018. The exemption amount for 2018 is $4,050; this is an increase from the 2017 personal exemption amount of $4,000.
Current and new employees who wish to update their state withholding must submit the State Form MI-W4 (Withholding Exemption Certificate). Furthermore, the number of entitled personal and dependency exemptions from withholding claimed by an employee, will be claimed on the Michigan state income tax return too.
Form MI-W4 Requirements Remains the Same
Employers are required to submit copies of any Form MI-W4 to the state received from employees claiming ten or more exemptions, and from employees claiming exempt from withholding tax. Most importantly, employers are required to submit Forms MI-W4 from employees changing their withholding status to exempt.
Employers should not submit copies of Form MI-W4 filed by:
- Part time or student employees whose earnings are less than their exemption allowance.
- Employees who live in a reciprocal state and claimed themselves exempt or,
- Employees claimed exempt for a statedperiod of time.
For more information on how to calculate withholding, please review the updated 2018 Michigan Income Tax Withholding Guide here and the updated withholding tables here.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.