Michigan Nanny Tax Calculator

How does the calculator estimate Michigan nanny taxes?

It adds up everything you owe as the employer in Michigan, on top of your nanny's wages.

• Federal FICA: 15.3% combined, split between you and your nanny
• Federal FUTA: 0.6% effective on the first $7,000
• Michigan SUTA: 0.05% - 10.78%
• Michigan state income tax (when withheld)
• Local income tax (Michigan has significant local layers)

Figures are 2026 rates and use the 2026 FICA threshold of $3,000.

Does Michigan require state income tax withholding from a nanny's paycheck?

Usually not. Michigan has a state income tax, but withholding it from a household employee is optional unless your nanny asks for it.

• It is usually optional, and your nanny elects it on Michigan's W-4 equivalent
• If they do elect it, you owe quarterly remittance to the state and an annual reconciliation return that includes the W-2 you issued

What's the minimum hourly rate I can pay a nanny in Michigan?

At least $7.25 an hour for a nanny in Michigan.

• Michigan's own minimum wage of $13.73/hour only covers households with 2 or more employees, so the federal floor governs for a smaller household
• Some cities and counties may set a higher floor, so check your locality before you set a rate
• Overtime is 1.5x pay for hours over 40 in a week, under the FLSA
• Live-in nannies are exempt from FLSA overtime, but not from minimum wage

MCL 408.932(d)

Does Michigan add disability or paid family leave premiums?

No. Michigan does not require state disability insurance or paid family leave for household employees.

• Your obligations are the federal baseline: FICA, FUTA and Schedule H
• Michigan state unemployment insurance still applies on the employer side

Why does my Michigan nanny's net pay differ from the calculator total?

Because they answer different questions. The calculator's employer total is what leaves your account; net pay is what lands in your Michigan nanny's.

• Federal FICA: 6.2% Social Security plus 1.45% Medicare, so 7.65% off the top
• Any federal income tax your nanny chose to have withheld
• Michigan income tax, if your nanny elected it on the state W-4

Your own share, the employer FICA match plus FUTA and SUTA, sits on top of gross pay rather than coming out of it.