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Michigan registration and tax info

Updated

Before issuing payments to employees, ensure that you've completed the payroll registration process in the relevant state of their employment. This might take a few weeks, so beginning early is advisable to get the necessary tax account details for payment purposes.

Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.

Let Niural register for you

Niural partners with Middesk to help you register your business in new states. 

How it works

On adding a new work address in a different state or recruiting a new employee who has been allocated a work address in that state, you can access registration support within Niural.

The pricing is subject to change based on the state. 

Here's an overview of the procedure:

1. Provide essential business details.

2. Niural and Middesk will verify the accuracy of the information.

3. Registration applications are normally sent within 3-5 business days.

4. Look out for registration details from Middesk in the mail. 

5. Middesk can guide you through entering any data they don't handle on your behalf through Niural.

Initiate the state tax registration process

  • Sign in to Niural as an employer.
  • Navigate to the Company tab under Company.
  • Select Jobs and Pay.
  • Under “MichiganTax Setup”, click Let Niural register for you.

Note: Niural can only register for you if you don't yet have a state account already.

  • Enter company information on Middesk. 
  • Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.
  • Check the status of your order
  • Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including:

1. Reviewing registration information.

2. Any additional state-specific instructions.

Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.

Cancel your order

If an order is already completed, you'll need to contact Middesk to cancel.

If an order is in progress you can email us at support@niural.com.

You'll be refunded, but it can take a few business days to process. 

 

Register with MI agencies on your own

Michigan tax agencies

  • Michigan Department of Treasury - income tax withholding
  • Michigan Unemployment Insurance Agency- unemployment tax

Income tax (withholding) account registration

As part of the registration process, you will be inquired about your usage of a payroll service and whether you require a Power of Attorney (POA) form to be completed. After you have designated a work address in Michigan for your initial Michigan-based employee and input the necessary Michigan tax account details into Niural, we will generate the POA form for your electronic signature.

Register for withholding tax

  1. Head to the Department of Treasury registration and FAQ page to get started.
  2. Follow their step-by-step guides to register—you may either complete the online eRegistration process through MTO or mail Form 518.
    • eRegistration is authenticated within 10-15 minutes of application submission. If mailing Form 518, allow 4-6 weeks for processing.

If you have trouble registering your business or have questions regarding the status of your application, contact the Registration Unit at (517) 636-6925.

Reminder:

Third-party authorization is required so we can pay and file your withholding taxes. We'll attempt to access your Withholding Tax account online, behind the scenes.

If we're unable to get the access we need using the information we have on file, we'll notify you and request some more information—zip code, last payment amount, or most recent total tax due.

Enter the tax account information in Niural

Once a valid Michigan work address has been added in Niural for one or more employee(s), you can add your tax account information:

1. Go to the Company details section in your Niural account.

2. Click on Jobs and Pay.

3. Select Edit on Michigan Tax Setup.

4. Enter your rate here.

If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here. 

Update your rate in Niural only if it differs from the current one.

Unemployment tax account registration

You'll need to register with the Michigan Unemployment Insurance Agency to receive the unemployment account numbers and tax rates—you should receive your Employer Account Numbers and rates a few days after registering. 

Registering for unemploy

ment tax

  1. Start your registration here.
  2. Follow the remaining agency prompts to complete your registration.

For questions about your unemployment tax number or rate, contact the agency at (855) 484-2636, option 5.

Enter the tax account information in Niural

Once a valid Michigan work address has been added in Niural for one or more employee(s), you can add your tax account information:

1. Go to the Company details section in your Niural account.

2. Click on Jobs and Pay.

3. Select Edit on Michigan Tax Setup.

4. Enter your rate name here.

If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here. 

Update your rate in Niural only if it differs from the current one.

 

Verify account information is accurate in Niural

Certain agencies mandate specific authorization for Niural to process or file your tax payments. To ensure that we have the necessary authorization, please verify that the information you've entered in Niural aligns with the records maintained by the Michigan Unemployment Insurance Agency.

  • FEIN - Federal Employment Identification Number
  • Unemployment Account Number (UIA)

If we're having trouble gaining access to your account, call the agency to troubleshoot at (855) 484-2636, option 5.

Local tax account registration

Michigan local taxes are assessed based on where an employee works, and where they live. However, it's only mandatory for employers to deduct and remit the taxes for the locality where the wages are earned (where they worked).

Every employer is required to withhold taxes if they:

  • Have a location in the city, or;
  • Are doing business in the city (even if the employer has no location in the city). 

When an employer conducts business in a city with a local income tax, they must withhold income tax from the following categories of employees:

  • All residents of the city, regardless of whether they work within the city.
  • All nonresidents of the city who consider the city as their primary or predominant place of employment.

Local tax registration resources

Niural manages the payment of these taxes; however, as a business owner, you are responsible for registering with the specific city or cities where your employees work. The registration process is unique for each city.

Click a city name below to find the form that needs to be mailed to that city to register—the most up-to date registration form resources can be found on the Department of Treasury website.  

Predominant work city

Multiple cities in Michigan levy an income tax on residents and nonresidents who work in these specific cities. These taxes are typically 1% income tax on residents, and 0.5% on nonresidents.

If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Niural profile. 

  • A predominant place of work is defined as "...that city imposing a tax under a uniform city income tax ordinance other than the city of residence, in which the employee estimates he will earn the greatest percentage of his compensation from the employer.”

Employee action required

Employees must identify their predominant work city on the city's W-4 by December 1 for the next calendar year, then update their Niural profile.

There are a few cases where an employee may not have an option to select a predominant work city in Niural, or where a predominant work city doesn't technically exist:

  • The employee works and lives in the same city—no additional action needed.
    • Predominant work city only applies to work completed outside the city they live in.
    • If prompted for a predominant work city, employees can select “No Predominant City".
  • There's only one Michigan work location for an employer—no additional action needed.
    • If prompted for a predominant work city, employees can select “No Predominant City".
  • An employee works in no place more than 25% of the time. When this happens, the local withholding is allotted to only the home location—you'll want to contact Niural at support@niural.com to have us set this up correctly. 

Employees can view or update their "Predominant Work City" in Niural

  1. Sign in to their employee profile.
  2. Click the Tax Setup from the Company Details section.
  3. Scroll to the “Michigan Taxes” headline, and click edit.
  4. View or edit the Predominant Work City selection—all of a company's work cities that have a Michigan local income tax will be available to choose from.
    • If the employee works more than 25% in any of the listed cities (as elected on the city W-4), select the city where the most work will be performed. 

Admins can update this on employees' behalf

If you already know the MI employee who needs a predominant work city update, you can access their profile from the Team Members section of your account.

To view all employees associated with Michigan, to find the employee profile that needs updating:

  1. Sign in to your admin profile.
  2. Head to the Taxes & compliance section and select Tax setup.
  3. Scroll to "Michigan Tax Setup" and click Manage taxes.
  4. Scroll to the "Employees in Michigan" headline and click on an employee's name to go to their profile.
  5. Scroll to the "Michigan Taxes" headline and click edit.
  6. Select a Predominant Work City and click Save.

Find account numbers and rate info (if you're already registered)

If you've already registered in the state, you'll need to enter your tax account details in Niural to pay employees.

You'll need to be registered with one or more of the below agencies in order for Niural to file and pay taxes on your behalf:

  • Michigan Department of Treasury - income tax withholding
  • Michigan Unemployment Insurance Agency- unemployment tax

If you still need to register, click the applicable dropdown above in this article to learn more. 

Find your withholding (income) tax account number

If you've run payroll in the past in Michigan, you can find your 9-digit MI Withholding Tax ID Number (XX-XXXXXXX) on notices you've received from the Department of Treasury.

  • Reminder: This number is always the same as your company's FEIN.

If you have questions, call the agency at (517) 636-6925.

Find your unemployment tax account number and rate

Unemployment tax account number

If you've run payroll in Michigan in the past, you'll find your 10-digit MI UIA Account number (XXXXXX XXX) on notices that you've received from the agency.

  • Important: If you have a 7-digit UIA Account number, enter 000 for the last three digits to make it 10 digits.

If you're unsure of your ID, call the agency at (855) 484-2636, option 5.

Unemployment tax rate

Your total unemployment rate appears on the bottom right of Form UIA 1771, the "Tax Rate Determination For Calendar Year" notice that you receive annually from the Unemployment Insurance Agency—this rate includes the Obligation Assessment (OA) Tax.

If you're unsure of your rate, call the agency at (855) 484-2636, option 5.

Predominant work city—employee action required

Multiple cities in Michigan levy an income tax on residents and nonresidents who work in these specific cities. These taxes are typically 1% income tax on residents, and 0.5% on nonresidents.

If you operate multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Niural profile. A predominant place of work is defined as the city that enforces a tax under a uniform city income tax ordinance, distinct from the employee's city of residence, where the employee anticipates they will predominantly work will earn the greatest percentage of his compensation from the employer.

Employee action required

Employees must identify their predominant work city on the city's W-4 by December 1 for the next calendar year, then update their Niural profile.

There are a few cases where an employee may not have an option to select a predominant work city in Niural, or where a predominant work city doesn't technically exist:

  • The employee works and lives in the same city—no additional action needed.
    • Predominant work city only applies to work completed outside the city they live in.
    • If prompted for a predominant work city, employees can select “No Predominant City".
  • There's only one Michigan work location for an employer—no additional action needed.
    • If prompted for a predominant work city, employees can select “No Predominant City".
  • An employee works in no place more than 25% of the time. When this happens, the local withholding is allotted to only the home location—you'll want to contact Niural to have us set this up correctly. 

Employees can view or update their "Predominant Work City" in Niural

  1. Sign in to their employee profile.
  2. Click the Job & pay from the left-menu.
  3. Scroll to the “Michigan Taxes” headline, and click edit.
  4. View or edit the Predominant Work City selection—all of a company's work cities that have a Michigan local income tax will be available to choose from.
    • If the employee works more than 25% in any of the listed cities (as elected on the city W-4), select the city where the most work will be performed. 

Admins can update this on employees' behalf

If you already know the MI employee who needs a predominant work city update, you can access their profile from the Team Members section of your account.

To view all employees associated with Michigan, to find the employee profile that needs updating:

  1. Sign in to your admin profile.
  2. Head to the Company Details section and select Tax setup.
  3. Scroll to "Michigan Tax Setup" and click Manage taxes.
  4. Scroll to the "Employees in Michigan" headline and click on an employee's name to go to their profile.
  5. Scroll to the "Michigan Taxes" headline and click edit.
  6. Select a Predominant Work City and click Save.

Enter the tax account information in Niural

Once a valid Michiganwork address has been added in Niural for one or more employee(s), you can add your tax account information:

1. Go to the Company details section in your Niural account.

2. Click on Tax Setup.

3. Select Edit on Michigan Tax Setup.

4. Enter your rate here.

If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here. 

Update your rate in Niural only if it differs from the current one.

How to authorize Niural with Michigan agencies

Learn how to authorize Niural as your third-party agent (TPA) for the agencies below. 

Authorizing Niural with the MI Department of Treasury

Third-party authorization is required so we can pay and file your withholding taxes.

We'll attempt to access your Withholding Tax account online, behind the scenes.

If we're unable to get the access we need using the information we have on file, we'll notify you and request some more information—zip code, last payment amount, or most recent total tax due.

Authorizing Niural with the MI Department of Labor and Economic Opportunity

Amendments often call for a different filing method than original returns. This agency requires that we have third-party access to your online Michigan Web Account Manager (MiWAM) in order to submit an amendment on your behalf.

  1. To get started, you'll need a MI Web Account Manager online account—if you don't have one, follow the steps in this agency guide to set one up.
  2. Log in to your MiWAM account.
  3. From the "Home" page, under the “I Want To” section, click the Add or Update Power Of Attorney link.
  4. Select the Add Power of Attorney link.
  5. Add the following Power of Attorney information—most information will populate after you enter our FEIN:
    • Representative FEIN: 45-3942850
    • Representative Name: Niural Inc.
    • Address:  1209 Lakeside Ranch Rd Georgetown, TX 78633, United States
    • Contact Name: Niural Inc.
    • Contact Phone: (732) 325-4941
    • Email: support@niural.com
  6. Click the UIA checkbox and go to the next step.
  7. In the "Beginning Authorization Date" field, enter the check date of the first payroll you ran in Niural for this state. 
    • You do not need to enter an end date.
  8. As the type of Power of Attorney, select General Authorization.
    • Once all POA steps are completed, a check mark will appear beside the "New POA" button.
  9. Click on the Next Step button.
  10. Click Submit.

Form 5080/5081—file outside of Niural

What is the Michigan Form 5080/5081?

Form 5080/5081 consists of the monthly, quarterly, and annual filings submitted by businesses in Michigan. These are composite returns, encompassing both payroll withholdings and sales tax reporting.

What is Niural's role in the filing of this form?

Since this form involves the reporting of sales tax, which Niural does not possess, we will file this form exclusively with the withholding tax information.

What is my role in the filing of this form?

Since Niural will only be reporting your payroll withholding, you will need to file an additional Form 5080 / 5081 with the completed sales tax details for the amount of sales and use tax owed. If sales and use tax are not owed, enter zeros on this form for these amounts. Leave the withholding tax portion of the form blank.

Michigan will then be able to combine the sales and use tax amounts from your filed form with the payroll withholding amounts from the form filed by Niural.

When does this form need to be filed and how do I file it?

Form 5080 

The sales tax section should be submitted by the 20th day of the month following the conclusion of the reporting period. For instance, monthly filers are required to file by the 20th day of the subsequent month, and quarterly filers are expected to file by the 20th day following the end of the quarter.

  • Note: if the 20th falls on a weekend or holiday, the due date will be the business day following the weekend or holiday.

If you owe sales and use tax in Michigan, this form must be completed either by paper or electronically. If you complete it by paper you should mail it to the address below:

Michigan Department of Treasury

P.O. Box 30324

Lansing, MI 48909-7824

Form 5081

This annual form is due by the end of February, and can be filed electronically via the state website or on paper and mailed to:

Michigan Department of Treasury

P.O. Box 30401

Lansing, MI 48909-7901

If the due date falls on a weekend or holiday, the due date will be the business day following the weekend or holiday.

Forms we file in Michigan

  • Michigan Monthly/Quarterly Return (MI 5080/160)
    • Withholding portions only
  • MI Sales, Use and Withholding Tax Annual Return (MI 5081)
    • Withholding portions only
  • Transmittal of Mag Media reporting of W-2 (MI 447)
  • Wage and Tax Statement (State W2)
  • Michigan Employer's Quarterly Wage/Tax Report (SUI) (MI UIA 1028)
  • Transmittal of Mag Media reporting of W-2 (MI 501 ALLIANCE)
  • MI New Hire Report
  • Various local returns

 

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