What is Michigan unemployment tax?
Michigan unemployment insurance tax is an employer-paid payroll tax administered by the Michigan Unemployment Insurance Agency (UIA). It generally is not deducted from your nanny’s or household employee’s paycheck.
Michigan Unemployment Tax for Nanny and Household Employers
If you hire a nanny or another household employee in Michigan, you may have state unemployment tax responsibilities in addition to federal household payroll taxes. Michigan unemployment tax is generally paid by the employer and helps fund unemployment benefits for eligible workers.
This guide explains the basics in plain English for Michigan families and household employers.
Do I have to pay Michigan unemployment tax for my nanny?
Michigan household employers generally become liable for unemployment tax when they pay $1,000 or more in cash wages for domestic service in a calendar quarter in the current or preceding calendar year. Domestic service includes nanny and other household work. This is Michigan’s household-employer liability threshold; if your situation is unusual, confirm your exact registration status with Michigan UIA.
First-time Michigan household employer setup
If your household employment is subject to Michigan unemployment tax, you generally need to establish an employer account with the Michigan Unemployment Insurance Agency. For a family hiring a nanny, the basic setup flow is:
- 1
Obtain an FEIN
Get a federal employer identification number if you do not already have one.
- 2
Use MiLogin
Create or sign in to a MiLogin for Business account.
- 3
Register in MiUI
Complete the employer registration through Michigan’s MiUI system.
- 4
Receive your EAN
Michigan UIA assigns an Employer Account Number to the account.
- 5
File and pay
Use the employer account for quarterly reports and unemployment payments.
How is Michigan unemployment tax calculated?
The calculation generally uses the unemployment tax rate assigned to your employer account and each employee’s taxable wages, up to the applicable annual wage base.
Michigan UIA assigns the unemployment tax rate for the employer account, and employers typically receive a rate notice from the agency. Use the rate shown on your current UIA rate notice rather than assuming a standard rate.
Formula
Michigan unemployment tax = employer tax rate × taxable wages up to the applicable wage base
2026 wage base
$9,000
Michigan identifies a $9,000 taxable wage base per employee for qualified employers in 2026. Delinquent employers may lose this reduced wage-base treatment, making accurate, timely reports and payments important.
Hypothetical example
If an employer’s assigned rate were 2.7% and the applicable taxable wage base were $9,000, the maximum tax on that employee under those assumptions would be:
$9,000 × 2.7% = $243
This is only a hypothetical illustration. Your actual Michigan unemployment tax rate is assigned by Michigan UIA and may be different.
Quarterly reporting
When are Michigan unemployment reports due?
Michigan unemployment wage and tax reports are generally filed quarterly. If the 25th falls on a weekend or holiday, the report is due by the next business day.
| Quarter | Payroll period | Standard deadline |
|---|---|---|
| Q1 | January–March | April 25 |
| Q2 | April–June | July 25 |
| Q3 | July–September | October 25 |
| Q4 | October–December | January 25 |
Michigan instructs employers to file every required quarterly report even when there was no payroll for the quarter or when payment cannot be made at the same time.
Where do Michigan employers file?
Michigan employers use MiUI to file quarterly unemployment wage reports and make unemployment tax payments. Employers can access MiUI and current filing instructions through the Michigan UIA Employer Help Center.
Visit Michigan UIA Employer Help Center (opens in a new tab)Michigan unemployment tax vs. FUTA
- Michigan unemployment tax is a state employer tax.
- FUTA is a federal employer unemployment tax.
- A household employer may have responsibilities under both systems.
Read the nanny tax guide for the broader federal household-employer overview.
Common mistakes for nanny employers
01
Treating unemployment tax as an employee withholding
02
Waiting until quarter-end to register
03
Skipping a quarterly filing because payroll was zero
04
Assuming every employer has the same tax rate
05
Ignoring notices from the Michigan Unemployment Insurance Agency
06
Mixing up Michigan unemployment tax with federal FUTA
Michigan unemployment tax FAQ
Do I have to pay Michigan unemployment tax for my nanny?
Michigan household employers generally become liable when they pay $1,000 or more in cash wages for domestic service in a calendar quarter in the current or preceding calendar year. Domestic service includes nanny and other household work. Confirm unusual circumstances with Michigan UIA.
How do I register as a Michigan household employer?
If you are subject to Michigan unemployment tax, obtain an FEIN if you do not already have one, create or use a MiLogin for Business account, and register through MiUI. Michigan UIA then assigns an Employer Account Number (EAN) for quarterly reporting and payments.
How do I know my Michigan unemployment tax rate?
Michigan UIA assigns the rate for your employer account. Use the rate shown on your current UIA rate notice rather than assuming a standard rate.
Is Michigan unemployment tax deducted from my nanny’s paycheck?
Generally no. Michigan unemployment insurance tax is generally paid by the employer rather than withheld from the household employee’s wages.
What is Michigan’s taxable wage base for 2026?
Michigan identifies a $9,000 taxable wage base per employee for qualified employers in 2026. Employers that are not in good standing may not qualify for the reduced wage base.
How often do I file Michigan unemployment reports?
Generally quarterly. The standard due dates are April 25, July 25, October 25, and January 25.
Where do I file?
Employers file quarterly wage reports and make unemployment tax payments through Michigan’s MiUI employer system.
Is Michigan unemployment tax the same as FUTA?
No. Michigan unemployment tax is a state employer tax, while FUTA is a separate federal employer unemployment tax. A household employer may have responsibilities under both systems.
Keep payroll records clear
Open the Paystub GeneratorReady to create the paystub?
NannyPayStub helps household employers create a simple browser-based nanny paystub. It does not file Michigan unemployment reports or replace payroll and tax advice.