Michigan Employer Registration: UIA, Treasury Withholding and New Hire Reporting
Michigan Employer Registration: UIA, Treasury Withholding and New Hire Reporting
Informational only: This guide is general information, not legal or tax advice. Rates, wage bases and deadlines change. Confirm each figure with the agency named before you act, and talk with a qualified CPA or employment attorney about your situation.
The first time you hire in Michigan, you take on several separate registrations, and each one goes to a different agency. Owners often get the order wrong. They set up payroll before they have a state account, or they assume the payroll provider handled the new hire report. This guide covers the registrations in the order most owners need them, with the figures that are verified and clear flags on what you must confirm yourself.
What Michigan does and does not license
Michigan has no general statewide business license. LARA's Corporations Division receives and files the documents that form and maintain your entity, but it does not license businesses. Filing an entity through the MiBusiness Registry is a filing, not a license. The employer registrations in this guide are tax and employment accounts, and each one is separate from the others.
The registrations at a glance
| Registration | Agency | When you need it |
|---|---|---|
| Unemployment insurance employer account | Unemployment Insurance Agency (UIA), through MiWAM | You have employees, you buy a business, or you are a corporate officer who is the sole employee |
| State income tax withholding | Michigan Department of Treasury | You withhold Michigan income tax from wages |
| City income tax withholding | Treasury (Detroit) or the city's own office | Your business is in one of the 24 cities that levy a city income tax |
| New hire report | Michigan New Hires Operations Center (mi-newhire.com) | Within 20 days of each hire date |
| Workers' compensation coverage | Workers' Disability Compensation Agency (WDCA) | Once you have 3 or more employees, or 1 or more working 35 or more hours a week for 13 weeks |
| Workplace safety | MIOSHA | Ongoing |
| Minimum wage and workplace posters | Wage and Hour Division | Ongoing |
Step 1: Register with the Unemployment Insurance Agency
Michigan's unemployment insurance program is run by the Unemployment Insurance Agency (UIA). You register for an employer account through MiWAM, the UIA's online system. You need the account when you have employees, when you buy an existing business that already has them, or when you are a corporate officer who is the only employee of your corporation. A sole proprietor with no employees has no UIA registration to complete yet. Once you hire anyone, that changes, so register before your first payroll.
Unemployment tax is calculated on a taxable wage base, which is a cap on each employee's wages. For 2026, the UIA's Employer Advisor (December 2025) sets that base at $9,000 per employee for employers in good standing. A new employer is assigned a rate of 2.7%. Two points affect your budget:
- The base is per employee. Only the first $9,000 of each worker's wages in the year is subject to the tax, so the cost does not rise with payroll dollars above that cap.
- Delinquency costs you the reduced base. Employers who fall behind on reports or payments lose the reduced wage base. Ask the UIA which reports and payments keep you in good standing before your first payroll run.
Your new employer rate is an assignment, not a permanent figure, and it can change as your payroll history builds. Ask the UIA how the rate is reviewed so you can budget for the change.
Step 2: Register for state income tax withholding
If you withhold Michigan income tax from employee wages, register with the Michigan Department of Treasury before you run payroll. You can find the business registration process at michigan.gov/taxes. Michigan's individual income tax is a flat 4.25% for the 2026 tax year, which is the rate you withhold against on taxable wages. When you register, confirm your filing frequency and deposit schedule with Treasury rather than assuming them.
Whether an owner belongs on payroll depends on how the business is structured. A sole proprietor, or a partner in a partnership, is not an employee, so their draws are not wages subject to withholding. An LLC owner who is taxed as a sole proprietor is treated the same way. If your corporation or LLC has elected S corporation tax treatment, the owner-officer is generally an employee and must be on payroll. Confirm your structure with a CPA before you set up payroll.
Step 3: Check for city income tax withholding
Michigan has 83 counties, roughly 275 to 280 cities, about 255 to 258 villages and 1,240 townships. City income tax applies in only 24 cities, so most employers in Michigan have no city withholding to set up. If your business is inside one of those 24 cities, you must register and withhold the city tax. Detroit's city income tax is administered through Treasury. The other cities run their own offices, so you will need to contact each one directly.
Do not guess. Check the city's website or call city hall to confirm whether it levies an income tax and which office handles registration. Confirm this before your first hire, and ask the same question about any location where employees physically work, since the city rule can depend on where the work is done.
Step 4: Report every new hire within 20 days
Michigan requires employers to report each new hire to the Michigan New Hires Operations Center within 20 days of the hire date. You report online at mi-newhire.com. This report is separate from your UIA account and your tax filings, so a payroll provider that is not set up to file it leaves the obligation with you. Start the 20-day count on the hire date, not the first paycheck.
Report every new hire, including part-time, seasonal and temporary workers. Keep a dated record of each report, along with the employee's name and hire date, so you can show you met the deadline if a question comes up later.
Step 5: Get workers' compensation coverage
Michigan employers generally must carry workers' compensation coverage when they have three or more employees, or one or more employees who work 35 or more hours a week for 13 weeks or more (MCL 418.115). The Workers' Disability Compensation Agency (WDCA) administers the program. Buy a policy from an insurer before you reach that threshold, and keep proof of coverage on file. Ask the WDCA to confirm whether the requirement applies to your business and what documentation it expects you to keep. An injury to an uninsured worker can leave you personally responsible for the costs, so do not treat coverage as something to add later.
Step 6: Meet workplace safety, minimum wage and poster rules
MIOSHA covers workplace safety for your employees, and its rules apply from your first hire. The Wage and Hour Division covers minimum wage rules and the required workplace posters. Post the required notices where employees can read them, and check the Wage and Hour Division's current poster list before you post anything. Requirements vary by industry, so ask each agency which safety standards and posters apply to your work.
Other approvals your business activity can trigger
Most licensing in Michigan depends on your business activity, not your payroll. Licensing is by profession or activity, through LARA's Bureau of Professional Licensing, the Bureau of Construction Codes, the Michigan Department of Agriculture and Rural Development (MDARD), the Michigan Liquor Control Commission (MLCC), the Cannabis Regulatory Agency, LARA child care licensing and others. Local zoning, certificate of occupancy and health approvals also apply. Use the State License Search on LARA's site to check whether your activity needs a license, and check with your city or township on zoning and occupancy.
Recommended order of operations
- Get your federal Employer Identification Number (EIN) from the IRS, since most of these registrations ask for it.
- Register with the UIA through MiWAM before your first payroll.
- Register with Treasury for state withholding, and confirm whether your city levies a city income tax.
- Buy workers' compensation coverage before you reach the threshold in Step 5.
- Hire, then report the new hire within 20 days of the hire date.
- Post the required MIOSHA and Wage and Hour Division notices.
Common mistakes to avoid
- Treating the new hire report as optional. It is a separate filing from your payroll taxes.
- Assuming a city tax does not apply. Only 24 cities levy one, but you need to check yours.
- Putting the owner on payroll by default. Your business structure decides whether an owner is an employee.
- Letting UIA or Treasury accounts go stale. Delinquency can cost you the reduced wage base.
Where to confirm each figure
- Michigan Department of Treasury, business taxes and withholding: michigan.gov/taxes
- LARA Corporations Division, entity filings and annual statements: michigan.gov/lara/bureau-list/cscl/corps
- Michigan New Hires Operations Center: mi-newhire.com
- Michigan Small Business Development Center, advising for small business owners: michigansbdc.org
Find the UIA, WDCA, MIOSHA and Wage and Hour Division pages through michigan.gov, and confirm the current figures on those pages before you rely on them.
When to bring in a professional
A CPA should review your payroll setup if you have owner-employees, more than one location, or city withholding questions. An employment attorney can review whether the people you plan to hire are employees or independent contractors before you pay anyone. This guide is a starting point, not a substitute for either.