How to Find Out What My Employment Check Will Be After Taxes in Michigan

Your employer reports your annual tax deductions on your W-2 form.

Employees in all states are subject to federal income tax, Social Security tax and Medicare tax, unless an exemption applies. As a Michigan employee, your employer withholds these taxes from your paycheck and pays them to the Internal Revenue Service. The Michigan Department of Treasury requires your employer to withhold state income tax from your paycheck. All these taxes play a significant role in what your employment check will be once they are deducted. With the right formulas, you can calculate the deductions yourself.

Things You'll Need

• Michigan withholding tax tables
• MI-W4 form
• W-4 form
• IRS Circular E
• Social Security tax rate
• Medicare tax rate

Instructions

1. Subtract your pretax voluntary deductions, such as Section 125 medical and dental plans, and traditional 401(k) plans, from your gross pay. Your gross pay is your total pay for the pay period before deductions. The result is your gross taxable wages, subject to taxation. Pretax deductions are made from your paycheck before federal --- and in most cases --- state payroll taxes are withheld. Ask your employer, or your human resources or payroll department, for a list of your pretax deductions, if necessary.

2. Deduct Michigan state income tax from your gross taxable wages. Obtain your exemptions amount from line 6 of your MI-W4 form. Use the Michigan withholding tax table relevant to your exemptions, wages and payroll period to determine state income tax. If you do not have any exemptions, calculate state income tax at 4.35 percent of your gross taxable wages.

3. Subtract federal income tax from your gross taxable wages. Obtain your filing status and allowances from lines 3 and 5, respectively, of your W-4 form. Use the IRS Circular E's withholding tax table relevant to your payroll period, allowances and wages to figure federal income tax.

4. Deduct Social Security tax at 6.2 percent of your gross taxable wages and Medicare tax at 1.45 percent. The remainder is your pay after payroll tax deductions. This amount is also called your disposable pay, which is subject to wage garnishment, if applicable.

Tips & Warnings

• If you qualify for --- and claim --- exempt on your MI-W4 and/or W-4 form, you do not pay any state and/or federal income tax.

• If you indicated additional taxes to be withheld on your MI-W4 and/or W-4 form, add the extra amount to your state and/or federal income tax withholding for each pay period.

References

• Michigan.gov: MI-W4 Form
• Social Security Administration: Social Security and Medicare Tax Rates
• Michigan.gov: Business Taxes
• IRS: FAQs for Government Entities Regarding Cafeteria Plans
• Social Security Administration: Determining an Employee's Disposable Pay for AWG
• IRS: W-4 Form

Resources

• IRS: Circular E