State treatment of this bonus
Michigan separately paid employee bonuses use 4.25% withholding without regular-pay exemptions. A $1,000 bonus produces $42.50 state withholding. A city may also withhold income tax.
A worked bonus example
A $1,000 bonus with federal flat withholding of $220, incremental FICA of $76.50 and Michigan withholding of $42.50 leaves $661 before city and other deductions. Confirming a $5 city amount changes the estimate to $656.
When this estimate does not apply
A missing city confirmation leaves the result partial. Do not reuse a regular-pay city amount unless payroll confirms it also applies to this bonus.
Regular resident W-2 wages, separately paid cash bonus after the entered regular wages, in the same payroll period only. A bonus paid before those regular wages is not supported. No benefit changes, state exemptions, stock awards, gross-up, or earlier supplemental payment in that period. Federal assumptions are shown in the form. Withholding is a payment toward tax, not the final tax bill.
Sources and related tools
Reviewed August 31, 2026. Calculate regular Michigan pay · Federal bonus methods · Coverage and methodology