Payroll Office
News
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January 15, 2013
Electronic W-2 Information -
October 8, 2012
The Rate Column on Your Pay Stub Will Look Different -
October 4, 2012
Columbus Day and Payroll Direct Deposit -
October 1, 2012
Change in Michigan Income Tax rates
Change in Michigan Income Tax rates
Date: October 1, 2012
Please take note of the following changes that have been made to the Michigan Income Tax withholding and exemption rates effective October 1, 2012.
Tax rate
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The rate reduction from 4.35% to 4.25% as of October 1, 2012.
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The 2012 annualized rate is 4.33% and applies to all of 2012 regardless of when income was received.
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For 2013 and each tax year thereafter the rate is 4.25%.
Exemptions
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The personal exemption was increased from $3,700 to an annualized personal exemption of $3,763 for 2012. The personal exemption is $3,900 for 2013.
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Special exemptions for seniors are no longer allowed.
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The $600 exemption for children 18 and under is no longer allowed.
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Special exemption for unemployment compensation greater than 50% of adjusted gross income (AGI) is no longer allowed.
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Special exemption for disabled and exemption for disabled veterans remain unchanged.
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Phases out certain pension and retirement income subtractions based on date of birth. See Retirement Benefit Changes for more detailed information.
For more information please refer to the State of Michigan website which will explain the changes in detail.
If you have any questions please feel free to contact us!
Your Payroll Team
