Question 1

Is PEO licensing required in Michigan?

Accepted Answer

Yes. Michigan licenses PEOs under the Professional Employer Organization Regulatory Act, Public Act 370 of 2010, through the Department of Licensing and Regulatory Affairs (LARA). The department issues both full and limited licenses depending on the provider's footprint.

Question 2

Does Michigan require PEOs to post a surety bond?

Accepted Answer

No bond is required by the PEO act. Instead, annual renewals must be accompanied by audited financial statements, which effectively limits the market to providers with clean books and real accounting behind them.

Question 3

What is the SUI taxable wage base in Michigan?

Accepted Answer

Michigan's 2026 taxable wage base is $9,000, but only if the employer is in good standing. Otherwise the base jumps to $9,500. Employers that fall out of good standing are sent a notice and given 14 days to cure.

Question 4

What is the new employer SUI rate in Michigan?

Accepted Answer

New employers in Michigan pay a 2.7% SUI rate. The contribution range for experienced employers runs from 0.06% to 10.3%.

Question 5

What is the minimum wage in Michigan?

Accepted Answer

Michigan's minimum wage for 2026 is $13.73 per hour, with a legislated path to $15.00 on January 1, 2027.

Question 6

How does unemployment insurance work with a PEO in Michigan?

Accepted Answer

Reporting is client-level. The PEO files a single quarterly wage and contribution report but pays contributions based on each client employer's individual account information, preserving every client's experience rating.

Michigan PEO FAQs: Licensing, Compliance, and Costs

Frequently Asked Questions