All states · Updated for 2026
How to pay a nanny in Michigan
Everything a Michigan family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- Michigan unemployment tax: register with Michigan Unemployment Insurance Agency (UIA), Department of Labor and Economic Opportunity after $1,000 or more in cash wages for domestic service in a calendar quarter of the current or preceding calendar year (room and board excluded); new employers pay 2.70% on the first $9,500.00 of wages; file UIA 1028 Employer's Quarterly Wage/Tax Report (filed in MiUI) quarterly.
- Michigan income tax: withholding is voluntary for household employers (form MI-W4).
- New hire report: within 20 days of their start date.
- Minimum wage: $13.73/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: required (Earned Sick Time Act (MCL 408.961 et seq.) applies to every employer with 1 or more employees: accrue at least 1 hour of paid earned sick time per 30 hours worked. Small businesses (10 or fewer individuals) may cap use at 40 paid hours per year; larger employers at 72 hours. Small businesses became subject on October 1, 2025.).
- Workers' compensation: Required for a household domestic servant employed 35 or more hours per week for 13 weeks or longer during the preceding 52 weeks (MCL 418.118(2)); otherwise optional (voluntary coverage under section 121).
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and MI-W4.
- File the Michigan new-hire report within 20 days at the state site.
- Register with Michigan Unemployment Insurance Agency (UIA), Department of Labor and Economic Opportunity once you cross $1,000 or more in cash wages for domestic service in a calendar quarter of the current or preceding calendar year (room and board excluded) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file UIA 1028 Employer's Quarterly Wage/Tax Report (filed in MiUI). Quarterly wage/tax reports are due the 25th of the month after each quarter (Jan 25, Apr 25, Jul 25, Oct 25). 2026 figures are from secondary reporting (Bloomberg Tax), not a UIA publication: new employers pay 2.7%; the statutory wage base is $9,500, reduced to $9,000 for employers current on reports and payments. Enter the rate and wage base from your UIA rate notice. Only cash wages are reported for domestic service.
- January: W-2 to your nanny, W-2/W-3 to the SSA, Form 5081 Sales, Use and Withholding Taxes Annual Return to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Michigan nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in Michigan?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Michigan unemployment tax applies after $1,000 or more in cash wages for domestic service in a calendar quarter of the current or preceding calendar year (room and board excluded).
Do I withhold Michigan income tax from my nanny?
Michigan does not require household employers to withhold state income tax; you can withhold voluntarily using MI-W4 if your nanny asks.
What forms do I file in Michigan?
UIA 1028 Employer's Quarterly Wage/Tax Report (filed in MiUI) quarterly with Michigan Unemployment Insurance Agency (UIA), Department of Labor and Economic Opportunity, Form 5081 Sales, Use and Withholding Taxes Annual Return annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in Michigan?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Michigan. Michigan's Improved Workforce Opportunity Wage Act covers employers with 2 or more employees, so a household with one domestic worker is governed by the federal FLSA: overtime after 40 hours for live-out workers; live-in domestic workers are exempt from overtime. Households employing 2+ workers should pay at least the Michigan minimum wage.
What is the minimum wage for a nanny in Michigan?
$13.73 per hour in 2026 (schedule: $13.73 from 2026-01-01, $15.00 from 2027-01-01).
Pay your Michigan nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with UIA 1028 Employer's Quarterly Wage/Tax Report (filed in MiUI) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Form 446 (Rev. 02-26) — 2026 Michigan Income Tax Withholding Guide: withholding rate 4.25%, personal exemption $5,900; Form 5081 — 2026 Sales, Use and Withholding Taxes Annual Return (due February 28, 2027); Michigan UIA — Employer Liability Toolkit (domestic services: $1,000 cash in a calendar quarter); Michigan UIA — Quarterly Wage Reports Quick Reference Guide (due Jan 25, Apr 25, Jul 25, Oct 25); Bloomberg Tax — Michigan Increases Unemployment Insurance Tax Rates for 2026 (secondary: $9,000/$9,500 wage base, 2.7% new-employer rate); 2025 Public Act 1 (Improved Workforce Opportunity Wage Act): $13.73 from January 1, 2026; $15.00 from January 1, 2027; MCL 408.962–408.963 (Earned Sick Time Act): 1 hour per 30 hours; 40-hour use cap for small businesses (10 or fewer), 72 hours otherwise; MCL 418.118(2) (Workers' Disability Compensation Act): household domestic servants employed less than 35 hours/week for 13 weeks excluded. Rules for 2026 are provisional. General information, not tax or legal advice.