Beginning October 1, 2012, there are new rates in effect for Michigan taxes. Below is what employers need to be aware of:
- The individual income tax rate will be 4.25%
- The personal exemption amount will be raised to $3,950
- Income tax withheld from pensions and/or retirement benefits will also be taxed at the 4.25% rate
- There is no change to the monthly pension deduction rate
- These rates are effective through December 31, 2012
Employers will need to be sure to adjust Michigan income tax withholdings for employees effective October 1, 2012. If you have any questions, contact H&S Companies.