accouting software, payroll software, check printing software, w2 1099 software accouting software, payroll software, check printing software, w2 1099 software Make payments with PayPal - it's fast, free and secure!

How to Calculate 2016 Michigan State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2016 Michigan state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Michigan small businesses here.
payroll software
ezPaycheck: Small Business Payroll Solution


  Michigan STATE TAX TABLES

Tax rate used in calculating Michigan state tax for year 2016

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 Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number Of Allowances field as follows:
First Position - Enter 0 (zero)
Second and Third Positions - Enter the number of exemptions claimed (Line 6 on the MI-W4).

Additional Information:

None




Withholding Formula >(Michigan Effective 2016) <
  1. Subtract the nontaxable biweekly Thrift Savings Plan 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 (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages by 26 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 to compute the taxable income.

    Exemption Allowance = >$4,000< x Number of (Personal/Dependency) 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 by 26 to obtain the biweekly Michigan tax withholding.

 

 
Web site and all contents Copyright Halfpricesoft.com (Tekplus LLC) 2003 - 2022, All rights reserved.