Withholding Rate and Personal Exemption Amount Announced
For wages paid after December 31, 2010 and before October 1, 2011, the withholding rate is 4.35% and the personal exemption amount is $3,700. For wages paid after September 30, 2011, a withholding rate reduction takes effect. Employers may calculate the reduced withholding by multiplying the withholding amount in the Michigan Income Tax Withholding Tables by 0.977. Alternatively, revised tables will also be released.
Exemptions Claimed on Form MI-W4
Employers should calculate Michigan withholding using the number of exemptions claimed on Form MI-W4, Employee’s Michigan Withholding Exemption.
Vision Payroll Using Updated Withholding Tables
Michigan employers do not need to take any further action as Vision Payroll will automatically transition to the revised withholding amounts on the effective dates.