Cost to hire an employee in Michigan
On top of a $50,000 salary, a Michigan employer pays roughly $4,560 in payroll taxes and insurance before benefits, about 9.1% of wages.
Last verified November 2, 2026. Sources: news.bloombergtax.com, oregon.gov.
What a Michigan employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Michigan unemployment (SUTA) | 2.7% new employer 0.06%–12.2% experienced | First $9,000 |
| Workers' compensation | ~$0.90 per $100 | Varies by job class |
Obligation Assessment may apply (none itemized for 2026)
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,278 | 9.4% | $38,278 |
| $50,000 | $4,560 | 9.1% | $54,560 |
| $75,000 | $6,698 | 8.9% | $81,698 |
| $100,000 | $8,835 | 8.8% | $108,835 |
| $150,000 | $13,110 | 8.7% | $163,110 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Michigan vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Michigan | $9,000 | 2.7% | $4,560 |
| Indiana | $9,500 | 2.5% | $4,460 |
| Ohio | $9,000 | 2.85% | $4,464 |
| Wisconsin | $14,000 | 3.05% | $5,004 |
Frequently asked questions
- How much does it cost to hire an employee in Michigan?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,560 (9.1%), before benefits, for a total of $54,560.
- What is the Michigan SUTA rate for new employers?
- New employers generally pay 2.7% on the first $9,000 of each employee's wages. Experienced employers pay between 0.06% and 12.2%.
- Do Michigan employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.