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I have Michigan employees but my company is located in another state. Am I still required to withhold Michigan tax from the Michigan employees?

I have Michigan employees but my company is located in another state. Am I still required to withhold Michigan tax from the Michigan employees?

Yes, if the out-of-state company has created nexus (a physical presence) within Michigan the employer would be required to register with the Michigan Department of Treasury to withhold Michigan income tax.

Exception: If the employee working in Michigan is a resident of reciprocal state (i.e., Wisconsin, Indiana, Kentucky, Illinois, Ohio or Minnesota) do not withhold Michigan tax.