Michigan Employer Checklist
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with other MI laws.
Resources:
If your employee works 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks, you are required to maintain workers’ compensation insurance coverage for medical expenses and lost wages due to on-the-job injuries or illness. First, contact your homeowner’s or renter’s insurance policy provider. You might already be covered, but check with your insurance provider to be sure you are sufficiently covered. If you don’t have coverage, contact MI Workers' Compensation Insurance.
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s profile in the Nest Payroll app at anytime during the year.
Michigan requires the following poster to be given to your employee:
Minimum Wage and Overtime: In English and In Spanish
See here for other applicable notices for your employee: Posters for MI Employers
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Please take advantage of their excellent and free sample contracts and guide books.
PAID SICK TIME: NOT REQUIRED
Sick leave isn’t required, but if you’d like to offer it, a typical amount is three days or 24 hours per year. You can set this up in your employee’s profile. When taken, simply enter the used hours in the Nest Payroll app when creating a paycheck.
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time is not required, but it could be an important benefit to offer. Vacation/PTO hours can be entered in the Nest Payroll app when creating a paycheck.
MINIMUM WAGE: REQUIRED BY LAW
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections. To check if your city has a higher minimum wage requirement than the state, click on the following:
The Economic Policy Institute - Minimum Wage Tracker
MI Dept. of Labor and Economic Opportunity- Minimum Wage
Also, when you add an employee to the Nest Payroll app, the minimum wage for your city should pop up.
OVERTIME: REQUIRED BY LAW
Overtime of at least 1.5x the hourly rate for any hours worked over 40 in a seven day period. Overtime is not required for live-in employees, nor when work is performed on a holiday.
Details: MI Overtime
When you and your Michigan employee parts ways for any reason, you must pay all wages due by the next payday. Also provide this MI Unemployment Compensation Notice to your departing employee.
Michigan New Hire Reports
Michigan Treasury: Annual reporting/filing and tax payments
Michigan Dept. of Labor and Economic Opportunity (LEO): Quarterly reporting/filing and tax payments
Annual Reconciliation to MI Treasury
IRS quarterly estimated tax payments (IRS schedule is: April/June/September/January)
W-2s for all your household employees
Schedule H, signature ready, that you include with your personal 1040 taxes in April
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.