Michigan permit worked example

Hiring Your First Employee in Michigan: Payroll Accounts, Insurance, and Who to Call

You are about to put someone on payroll in Michigan — a first hire, a rehire, an owner joining payroll, or a seller's team you keep at closing. The example below follows one broad team-takeover scenario and shows who decides each task, what to ask, what to have ready, and the official sources behind it. Worker, employer, job, location, and schedule facts can change the list.

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Before signing, buying, or starting work

Open the unemployment (UIA) successorship file before accepting the deal

Official check

Buying, leasing, merging with, or continuing a business can change UIA liability and tax experience. Michigan says the seller provides the UIA 1027 information at least two calendar days before an offer is accepted, not counting Saturdays, Sundays, or legal holidays. Either party can request UIA clearance at least 10 days before transfer. These are separate from Treasury clearance.

Ask

What business and workforce are transferring, what UIA 1027 and account history has the seller provided, and what registration, clearance, experience-transfer, wage, layoff, and rate steps apply before closing?

Have ready
Proposed offer and closing dates, assets and percentage, trade name and goodwill, continued activity, seller and buyer entities and FEINs, UIA 1027, current employee and layoff lists, account and rate history, liabilities, payroll, MiUI registration, clearance request, and adviser review.
Who decides
Michigan Unemployment Insurance Agency and qualified transaction advisers

This tool cannot decide successorship, calculate a rate or liability, verify UIA 1027, request clearance, transfer experience, or protect the buyer at closing.

Keep Treasury clearance and purchase safeguards in the closing file

Official check

A buyer of a business or assets can face Michigan successor-liability risk. Treasury says the seller requests tax clearance, and the buyer may need to hold enough purchase money in escrow until the seller provides it.

Ask

Which seller taxes and accounts are covered, has the seller requested clearance, what escrow or withholding term protects the buyer, and which buyer registrations must be active for the first payroll?

Have ready
Purchase agreement and allocations, seller and buyer legal names and FEINs, tax account list, clearance request and certificate, escrow terms, closing instructions, liabilities, payroll date, buyer registrations, and tax and legal adviser review.
Who decides
Michigan Department of Treasury and qualified Michigan tax and transaction counsel

This tool cannot request or verify clearance, choose an escrow amount, calculate liability, interpret the deal, register the buyer, or provide tax or legal advice.

Put every first-shift record under the real employer

Official check

The buyer, seller, payroll company, worksite, and licensed business may be different legal people. Seller accounts and policies do not automatically become the buyer's accounts.

Ask

Which legal person or entity employs the worker on the first paid day, who sends the pay, what FEIN belongs to the employer, and do every account, policy, form, worksite, and pay record match that answer?

Have ready
Legal name and entity papers, assumed names, FEIN confirmation, owner and responsible-party records, start or closing date, offer, staffing or PEO agreement, payroll setup, Treasury and UIA confirmations, insurance declarations, worksite and remote locations, and seller records when buying.
Who decides
Michigan Treasury, UIA, IRS, Workers' Disability Compensation Agency, and the entity's qualified advisers

This tool cannot form an entity, obtain or verify an FEIN, choose the employer, transfer an account or policy, or say the records match.

Get the workers' compensation answer for this employer and first day

Official check

You selected three or more workers at one time. Michigan lists that as an express private-employer coverage trigger, including part-time employees. A quote, application, seller policy, certificate, or low headcount is not the same as confirmed coverage for the correct entity, work, locations, and date.

Ask

Is this employer subject to Michigan's workers' compensation law, who counts, and what policy or accepted alternative covers the exact entity, work, locations, and first paid day?

Have ready
Entity and owners, FEIN, headcount at one time, weekly hours and 13-week history, worker relationships, jobs and hazards, work states and locations, first day or closing date, policy application and declarations, classifications, endorsements, seller policy, claims, and written agency or adviser answer.
Who decides
Michigan Workers' Disability Compensation Agency and a licensed insurance professional

This route cannot decide who is an employee, whether coverage is required, whether an exclusion applies, the correct classification, policy terms, premium, claim coverage, or whether an injury is compensable.

Map every retained worker and file before the handoff

Official check

Keeping the seller's team can carry unpaid wage, leave, benefit, union, immigration-record, injury, safety, payroll, tax, claim, and privacy questions. Possessing a seller file does not mean the buyer may rely on it or that every duty continues unchanged.

Ask

For each worker, what ends with the seller, what lawfully transfers, what the buyer must issue or complete anew, and who owns each open pay, leave, claim, training, discipline, or benefit matter?

Have ready
Employee list and terms, start and service dates, job and pay history, time and payroll records, leave and benefit balances, I-9 and personnel-file custody plan, union agreements, workers' compensation claims, accommodations and restrictions, safety incidents and training, notices, privacy controls, and closing assignments.
Who decides
Qualified employment, benefits, immigration, privacy, payroll, insurance, labor, and transaction advisers with the responsible agencies

This route cannot decide file ownership, service credit, successor obligations, union or benefit duties, privacy, I-9 reliance, claim responsibility, or whether employment continues.

Before opening or putting the change into use

Get the minor's permit before work and screen the actual job

Official check

The plan includes a 16- or 17-year-old, whose permit, hours, supervision, and hazardous-task limits still need review. As reviewed July 22, 2026, Michigan routes permits through schools through September 30 and says that on October 1, 2026, a centralized state system begins. This rule is moving: recheck the official page for any start on or after October 1. The permit process in effect on the real start date controls.

Ask

Which permit system applies on the actual start date, and are this minor's age, school status, task, equipment, hours, breaks, travel, and adult supervision allowed before work begins?

Have ready
Age band without private identifiers here, proposed start date, school and permit contact, exact duties and equipment, schedule and breaks, adult supervisors, location and travel, federal youth-work screen, permit and posting record, and any deviation request.
Who decides
Michigan Wage and Hour Division, the current work-permit issuer, and U.S. Department of Labor when applicable

This tool cannot issue a permit, decide an exemption, approve hours or a task, compare every federal and state restriction, or authorize work before the permit.

Settle the real working relationship before choosing the forms

Official check

The first paid shift starts more than payroll. An owner title, staffing arrangement, professional employer organization, 1099, family relationship, intern title, volunteer label, or short season does not settle who the employer is. Michigan and federal programs can use different tests, so the facts about control, money, tools, risk, and the relationship matter more than the label.

Ask

For UIA, tax, wage, workers' compensation, safety, and other programs, which relationship applies to this real work—and where do the programs use different tests?

Have ready
Duties and business purpose, who sets schedule and methods, training, supervision, tools, expenses, place of work, other customers, opportunity for profit or loss, duration, contract, benefits, family relationship, age, school or training arrangement, and payment records.
Who decides
Michigan UIA, Treasury, Workers' Disability Compensation Agency, IRS, Wage and Hour, and qualified counsel as needed

This route cannot classify a worker. A 1099, contract, family relationship, intern title, volunteer label, short season, or worker request is not clearance under every program.

Set up withholding and payroll before the first wage is due

Official check

A payroll service can help file forms, but the employer remains responsible for the correct legal account, wage records, deposits, returns, and employee forms. Michigan withholding registration uses the business FEIN.

Ask

Which federal and Michigan withholding, deposit, return, W-2, payroll-record, and employee certificate steps apply before the first payroll?

Have ready
Employer legal name and FEIN, work locations and states, start date, pay types and schedule, payroll provider agreement, federal W-4 and Michigan MI-W4 process, Treasury and federal account confirmations, authorized users, calendar, and record-retention plan.
Who decides
Michigan Treasury, IRS, and a qualified payroll or tax professional

This route cannot calculate payroll, withholding, deposits, taxes, rates, exemptions, filing frequency, or whether a payment is wages.

Open the unemployment (UIA) account and covered-wage answer

Official check

Your answers reach at least one starting trigger in UIA's 2026 toolkit for an ordinary employing unit: $1,000 or more in calendar-year wages, or at least one worker in 20 different weeks. UIA still decides liability, covered services, and the account start. Full-time, part-time, seasonal, family, remote, and other work can follow different coverage rules, and a seller's account is not the buyer's account.

Ask

Must this employing entity register with UIA, which services and wages are covered, when do reports begin, and which family, temporary, remote, acquisition, or other special facts change the answer?

Have ready
Entity and FEIN, first wage date, expected calendar-year wages, weeks with at least one worker, worker models and family relationships, ages, duties, pay and hours, work locations, remote states, prior payroll, seller or predecessor facts, UIA registration and notices, and payroll-provider role.
Who decides
Michigan Unemployment Insurance Agency

This tool cannot decide UIA liability, worker status, covered wages, tax rate, report dates for this account, or whether a family relationship is excluded.

Use the current Form I-9 process on its real clock

Official check

For a person hired for employment in the United States, the employee completes Section 1 after accepting the offer and no later than the first day of paid work. The employer generally completes Section 2 within three business days; a job lasting fewer than three business days moves Section 2 to day one. The employee chooses which acceptable documents to present.

Ask

Who is the trained employer representative, when do Sections 1 and 2 come due, and how will the current form, document choice, review method, corrections, privacy, and retention rules be followed?

Have ready
Current Form I-9 and instructions, accepted-offer date, first day of paid work, expected job length, employee and authorized-representative process, secure storage, correction procedure, remote-review facts, and retention calendar. Do not enter identity or document numbers in this tool.
Who decides
U.S. Citizenship and Immigration Services

This tool cannot complete Form I-9, choose or request a particular document, verify work authorization, decide an exception, run E-Verify, or give immigration advice. E-Verify is separate and is not required of every Michigan employer.

Write the pay plan before hours and money start moving

Official check

Michigan requires wages on a regular schedule and a retainable pay statement showing hours, gross wages, deductions, and pay-period dates. Minimum wage, overtime, tips, salary, commission, piece work, and deductions need fact-specific federal and state review.

Ask

What rate or method, workweek, timekeeping, regular payday, statement, tip or commission rule, overtime treatment, deduction authorization, and final-pay process apply to each job?

Have ready
Written offer and policies, duties, pay model and rates, workweek and schedule, timekeeping, tip and commission terms, overtime classification analysis, deductions and authorizations, payroll calendar, sample statement, remote-work time, and recordkeeping plan.
Who decides
Michigan Wage and Hour Division, U.S. Department of Labor, and qualified payroll or legal help

This tool cannot calculate pay, minimum wage, overtime, tips, commissions, deductions, exemptions, damages, or a lawful salary arrangement.

Give the earned-sick-time notice and build a usable record

Official check

A buyer cannot treat retained workers as a clean first-hire file. Michigan's Earned Sick Time Act has a successor rule, and accrued rights generally continue unless the prior employer uses the act's allowed payout path. Size, service, records, notices, policy, and closing terms need one written answer.

Ask

Which workers and start dates are covered, is any new-small-business delay or successor rule involved, what notice and policy must be delivered when, and how will time worked, earned time, use, carryover, pay, confidentiality, and records be tracked?

Have ready
First-ever employee date, whether anyone worked on or before February 21, 2022, acquisition history, nationwide headcount by workweek, hire and service dates, worker models and ages, work base and travel, seller balances and records, written notice and delivery proof, benefit year, policy, payroll settings, hours, existing leave, union agreements, and secure record process.
Who decides
Michigan Wage and Hour Division

This tool cannot decide ESTA coverage or an exception, calculate earned time or pay, draft a policy, evaluate another leave law, or approve a denial or discipline decision.

Choose the official notices for this employer and each workplace

Official check

Required notices vary by law, business, size, worker, location, and remote-work setup. The U.S. Department of Labor says a commercial all-in-one poster is not a substitute for choosing the notices that actually apply.

Ask

Which Michigan and federal notices must be displayed or delivered, where can each worker and applicant see them, and what language or electronic access is needed?

Have ready
Employer and industry, headcount, worker ages, locations and remote arrangements, government contracts, leave and safety programs, current official poster list, delivery method, display locations, languages, and review date.
Who decides
Michigan Wage and Hour Division, MIOSHA, and U.S. Department of Labor

This tool cannot choose every required notice, sell or approve a poster bundle, decide electronic posting, or say the posting file is complete.

Train for the real first-shift hazards before exposure

Official check

An office label does not clear the actual job. Driving, machines, chemicals, blood, heat, knives, construction, lifting, noise, respirators, violence, lone work, water, and other tasks can need different controls, written programs, equipment, training, and records.

Ask

For each job and location, what hazards must be removed or controlled, and what program, equipment, training, medical step, emergency plan, and record must be ready before exposure?

Have ready
Job and task list, locations and travel, equipment manuals and energy sources, chemicals and SDSs, exposure and injury history, staffing and supervision, controls, PPE, training language and records, emergency contacts, contractors, and temporary-worker roles.
Who decides
MIOSHA Consultation Education and Training and the standards office matched to the work

This is a starting screen, not a safety program. It cannot identify every hazard, measure exposure, select controls or PPE, decide recordkeeping coverage, certify training, or say work is safe.

Check the exact vehicle, trailer, load, trip, and driver before handing over the keys

Official check

A valid ordinary driver license and an employer's insurance card do not settle commercial plates, elected weight, chauffeur or CDL status, medical qualification, motor-carrier registration, inspections, hours, hazardous materials, interstate travel, or the driver file.

Ask

For each assigned vehicle and trip, which title, plate, insurance, driver-license, medical, carrier, inspection, load, route, and record rules apply before this worker drives?

Have ready
Vehicle and trailer IDs, titles and registrations, rated and actual loaded weights, axle count, load and payment, origin and destination, driver license and medical records, insurance, inspections and maintenance, carrier numbers, and written assignment.
Who decides
Michigan Secretary of State, Michigan State Police Commercial Vehicle Enforcement Division, FMCSA when applicable, and the insurer

This employer route cannot classify a vehicle, driver, load, carrier, or trip; inspect equipment; bind coverage; or clear someone to drive.

Check every state and work location, not only the home office

Official check

Withholding, unemployment, wage, leave, workers' compensation, safety, local tax, posters, and registration can follow where work is done. A Michigan employer account does not clear work in another state.

Ask

For each worker and workday, where is work based and performed, and which state, local, remote-work, travel, driving, tax, wage, leave, insurance, and safety duties apply?

Have ready
Home and reporting location, all states and municipalities worked in, travel and driving, remote agreement, schedule, payroll sourcing setup, state accounts, workers' compensation endorsements, local taxes, notices, equipment, expenses, and expected changes.
Who decides
The responsible agencies in every work state and qualified payroll, insurance, and legal advisers

This Michigan route cannot register another state, decide where work is localized, allocate wages, calculate tax, choose insurance endorsements, or complete multi-state employment compliance.

Name the business and work before calling the checklist complete

Official check

Employer accounts are only one layer. Food handling, child care, body art, repair, manufacturing, alcohol, vehicles, fuel, water, chemicals, land work, and licensed services can add training, credentials, health, safety, and operating duties tied to the actual business.

Ask

Which business route fits the operation, and what job-specific license, training, health, driving, safety, record, or operating approval must be ready before this worker performs that task?

Have ready
Business and service list, site and mobile work, worker duties, licenses and permits, supervision, equipment, hazards, training and credentials, first-task date, and current official records.
Who decides
The agency and local offices responsible for the selected business, plus MIOSHA

This employer route does not replace the business permit, professional-license, food, safety, environmental, vehicle, or site review.

After opening, finishing work, or putting the change into use

Put the 20-day new-hire report on the calendar

Official check

Michigan's Form 3281 says newly hired employees working in Michigan must be reported within 20 days of the hire date, which is when services are first performed for pay.

Ask

Who will submit and confirm the report, what is the true hire or rehire date, and does a multi-state reporting rule change the filing path?

Have ready
Employer legal name, FEIN and address; employee information collected securely outside this tool; true first paid-work date or rehire separation dates; submission method; confirmation; and multi-state registration if applicable.
Who decides
Michigan New Hires Operation Center

This tool cannot submit the report, collect private identifiers safely, decide who must be reported, apply the multi-state rule, or cure a late report.

What this example leaves open

Some questions have no safe generic answer without the exact address, records, people, or equipment. The interactive check keeps each one visible instead of turning it into a silent gap:

  • The Michigan municipality and county are not both confirmed; remote or mobile work may add other places.
  • At least one worker label still needs program-by-program status review; the label is not clearance.
  • Whether anyone reaches 35 hours a week for 13 weeks is unsettled for the workers' compensation screen.
  • Workers' compensation coverage or a written noncoverage answer for the exact entity, date, work, and locations is not confirmed.
  • One or more first-shift account, form, reporting, pay, insurance, notice, poster, or safety starting points are still open.
  • The retained-team, UIA 1027, payroll, tax, insurance, leave, I-9, safety, incident, and Treasury purchase file is incomplete.
Coverage receipt

What this guide covers

This is a buyer’s first-shift call sheet. It does not transfer the seller’s employer accounts, policies, records, employees, tax rate, or legal duties.

Checked

This check screened 21 of 23 first-shift planning areas and named 6 open questions.

Still decided elsewhere

Michigan Treasury, UIA, the Workers’ Disability Compensation Agency, Wage and Hour, MIOSHA, federal tax and immigration agencies, insurers, and any industry regulator still decide their own duties.

Not checked

This route does not classify a worker, calculate wages or taxes, choose benefits, approve an I-9 document, decide an insurance dispute, inspect a workplace, write a safety program, review a union or employment agreement, or give legal, tax, payroll, immigration, insurance, or HR advice.