A W2 employee is hired to work on the employer’s schedule and taxes are required to be withheld from their paychecks. A 1099 independent contractor is generally hired for more short-term, non-contracted work. Taxes are not withheld from their pay and they are required to pay and report their own taxes on their income tax return.

Effective January 1, 2023, the Michigan minimum hourly wage is $10.10 for employees 18 and older. Minors 16-17 years of age may be paid 85% of the minimum hourly rate ($8.59). The minimum hourly rate for a tipped employee is $3.84.

Payroll employees should complete the New Hire Form (above) or fill out Form W4. If you are enrolled in direct deposit, they should also complete the Employee Direct Deposit Form (above). Be sure to notify us of their hourly pay rate or salary. Independent Contractors should fill out Form W9. All printable forms can be found on the Resources tab.