Michigan State Income Tax Withholding
Reference Number: NFC-24-1712598577
Published: April 18, 2024
Effective: Pay Period 05, 2024
Summary
The income tax withholding formula for the State of Michigan includes the following changes:
- The annual allowance amount, per exemption claimed, has changed from $5,400 to $5,600.
- The standard tax rate has changed from 4.05 percent to 4.25 percent.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
|
State Abbreviation: |
MI |
|---|---|
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State Tax Withholding State Code: |
26 |
|
Acceptable Exemption Form: |
MI W-4 |
|
Basis for Withholding: |
State exemptions |
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Acceptable Exemption Data: |
0/Number of exemptions |
|
TSP Deferred: |
Yes |
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Special Coding: |
Determine the Total Number of Exemptions Claimed field as follows: |
|
Additional Information: |
In the event an employee does not file a Form MI W-4, then zero (0) exemptions will be used as the basis for withholding. |
Withholding Formula (Effective Pay Period 05, 2024)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages in step 4 to compute the taxable income:
Exemption Allowance = $5,600 x Number of (Personal/Dependent) Exemptions
- Multiply the result of step 5 by 4.25 percent to obtain the amount of annual Michigan tax withholding.
- Divide the annual Michigan tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Michigan tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.