What is the SUTA rate in Michigan?

Michigan's SUTA (State Unemployment Tax) rates range from 0.06% to 6.8%, with a typical new employer rate around 2.7%. The SUTA wage base is $9,500 per employee.

Does Michigan have state income tax?

Yes, Michigan has a state income tax. While this is paid by the employee (not the employer), it affects take-home pay and overall compensation planning.

What workers' compensation insurance costs in Michigan?

The average workers' compensation rate in Michigan is approximately 0.98% of payroll. For a $60,000 salary, that's about $588 per year. Rates vary significantly by industry and claims history.

How Much Does It Cost to Hire an Employee in Michigan? (2026)

State-specific payroll taxes, workers' comp, and total employer costs in Michigan.

Total Cost at $60K Salary

$65,477

Cost multiplier: 1.09x

SUTA Rate (Mid)

2.7%

Wage base: $9,500

Workers' Comp Rate

0.98%

Has state income tax

Michigan Employer Tax Details

State-specific payroll obligations for employers

SUTA Rate Range	0.06% – 6.8%
SUTA New Employer Rate (typical)	2.7%
SUTA Wage Base	$9,500
Workers' Compensation (avg)	0.98% of payroll
State Income Tax	Yes

Example Employer Costs in Michigan

Mandatory employer taxes only (no benefits or overhead)

Component	$40,000 Salary	$60,000 Salary	$80,000 Salary
Social Security (6.2%)	$2,480	$3,720	$4,960
Medicare (1.45%)	$580	$870	$1,160
FUTA	$42	$42	$42
SUTA (MI)	$257	$257	$257
Workers' Comp	$392	$588	$784
Total Employer Taxes	$3,751	$5,477	$7,203
Total Cost (salary + taxes)	$43,751 (1.09x)	$65,477 (1.09x)	$87,203 (1.09x)

These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.

How Michigan Compares

Michigan's typical SUTA rate of 2.7% is above the national average of ~1.70%.

Workers' compensation at 0.98% of payroll is below the national average of ~1.20%.

Employee Costs in Other States

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