Reporting requirements for hiring employees in Michigan

Follow the mandatory reporting guidelines for hiring to avoid legal pitfalls.

Entrepreneurs who grow their business will be in need of employees. Most entrepreneurs start their business and do all the work themselves. Then, at a certain time in the business’s development, the entrepreneur will require employees. Employers have basic reporting requirements when they hire an employee.

Federal law requires employers in Michigan to report new hires and re-hires to the Michigan New Hires Operation Center. This is a web-based portal where you report to the state the new employee’s name, address, social security number, date of hire, and the state in which the business operates. This reporting is meant to expedite the collection of child support payments. This reporting is mandatory.

New employees will also have to complete a Michigan withholding exemption certificate to indicate how much state income tax should be withheld from their paycheck. The employee will also have to complete a federal W4 to indicate how much federal income tax to withhold from their paycheck.

The new employee must also prove that they are eligible for work in the United States. You are required to have a valid I-9 form on file for each employee. The employee will have to furnish you with certain documents to prove their eligibility. The most common are a social security card plus a driver’s license. A passport, and other official government-issued documents, will also provide the required documentation. Most employers make photocopies of the documents and maintain them in the employee’s file.

New employers in Michigan will also have to apply for unemployment insurance from the State of Michigan. Apply for this insurance using form 518: Michigan Business Taxes Registration Booklet. Make certain to check box 14 and 17, and complete UIA Schedule “A” and “B.”

Most employers will be required to carry worker’s compensation insurance. Employers obtain this insurance through private insurance companies. As of the date of this writing, if you have one employee working 35 hours or more per week for 13 weeks, or if you have 3 or more employees at one time, you are required to carry this insurance. Review the requirements online.

Following the reporting requirements will make hiring an employee easy and legitimate.

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