How to Do Payroll Deductions in Michigan
Subtract your mandatory federal, state, local and voluntary deductions from your gross pay to arrive at your Michigan net paycheck. Tax forms that you filled out with your employer when you were hired, or that you have changed since then, are used to determine your payroll deductions. City, local, and internal voluntary deductions filed with your human resources department are also deducted from your paycheck, usually weekly or biweekly. Understanding how your HR department makes those deductions will help you understand why you have the amount of money taken out of your check that you do.
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Instructions
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Michigan Payroll Deductions
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Check IRS publication 15 for the latest federal withholding payroll tax tables. Your federal tax deduction is determined by your exemptions that you filed with your W-4 form.
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Calculate Social Security or FICA taxes by multiplying your gross pay by 6.2 percent or .062.
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Multiply your gross pay by 1.45 percent or .0145 to determine your Medicare tax.
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Subtract nontaxable thrift savings and flex-spending deductions from your gross pay, add taxable benefits such as insurance to arrive at your adjusted gross pay. Multiply by 26 for gross biweekly pay. Subtract the exemption allowance from the gross biweekly pay. Multiply by 4.35 percent or .0435 to get the annual Michigan tax withholding. Divide by 26 for the biweekly state tax deduction.
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Check your local and city tax tables for specific city rates. Deduct those rates from your gross pay. Mandatory and voluntary wage garnishments, voluntary deductions such as United Way contributions, and other insurances must be deducted to arrive at your net pay.
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Tips & Warnings
Change deduction forms as life circumstances change.
Review your payroll deductions each paycheck or periodically to make sure that the deductions are correct.
Note that this article does not constitute tax advice, it is for informational purposes only.
References
Resources
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