TAXES 19-11, Michigan State Income Tax Withholding

Published: February 14, 2019
Effective: Pay Period 03, 2019

Summary

The annual allowance amount, per exemption claimed, has increased from $4,050 to $4,400 for the State of Michigan.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

MI

State Tax Withholding State Code:

26

Acceptable Exemption Form:

MI-W4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

0/Number of Allowances

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances Claimed field as follows:

First Position - Enter 0 (zero).

Second or Third Positions - Enter the number of exemptions claimed (Line 6 on the MI-W4).

Additional Information:

None

 

Withholding Formula (Effective Pay Period 03, 2019)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages in step 4 to compute the taxable income:

    Exemption Allowance = $4,400 x Number of (Personal/Dependent) Exemptions

  6. Multiply the result of step 5 by 4.25 percent to obtain the amount of annual Michigan tax withholding.
  7. Divide the annual Michigan tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Michigan tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.