Regulations Affecting Your Business
Michigan’s minimum wage increases to $10.33 on Jan. 1, 2024
On Jan. 1, 2024, Michigan’s minimum wage rate will increase from $10.10 to $10.33 per hour as set by Michigan’s Improved Workforce Opportunity Wage Act of 2018 which establishes the annual schedule of increases. Visit Michigan.gov/WageHour for more information.
Effective Jan. 1, 2024:
- The minimum hourly wage will increase to $10.33 per hour.
- The 85% rate for minors aged 16 and 17 will increase to $8.78 per hour.
- The tipped employee rate of hourly pay increases to $3.93 per hour.
Laws with Feb. 13th effective dates:
The following is a list of laws MRA has been tracking that were signed earlier this year without immediate effect. Laws will take effect on Feb. 13, 2024 (90 days after sine die).
- Public Act 4 of 2023 Increases the Earned Income Tax Credit to match federal EITC qualifications, exempts pensions and some private sector matched retirement income from the income tax on other retirement income, and issues a $180 “inflation relief check” to all taxpayers.
- P.A. 6 of 2023 Extends civil rights protections to include sexual orientation and gender identity or expression.
- P.A. 8 of 2023 Repeals Michigan’s Right to Work law and restores union labor provisions in statute.
- P.A. 14-15 of 2023 Exempts firearm safety devices including gun locks, gun safes, ear and eye protection from sales and use tax from Feb. 13- Dec. 31, 2024.
- P.A. 19 of 2023 Prohibits the sale of a firearm to an individual without first performing a background check.
- P.A. 37 of 2023 Prohibits the sale of a firearm to an individual with an extreme risk order on file.
- P.A. 104 of 2023 Allows state agencies to adopt rules or regulations that are stricter than Federal standards.
- P.A. 141-142 of 2023 Update Michigan’s sales and use taxes to align with a court case that adjusted the definition of which food items are considered “prepared” foods and taxable or “unprepared” and not taxable. Retailers under the 75% prepared foods sales threshold won’t see much impact.
2023 Holiday Shopping Stats
Numerator’s 2023 Q4 Holiday Preview survey found three-fourths of shoppers plan to give gifts to celebrate the holidays. The top gifted items, with expected percentage purchased, were:
- Gift Cards: 72%
- Apparel: 54%
- Toys/Games: 49%
- Home Goods: 36%
- Food: 36%
- Pet Products: 31%
- Books: 28%
- Accessories: 27%
- Spa or Beauty Products: 24%
- Electronics: 23%
- Jewelry: 22%
- Experiences: 19%
Concerns About Rising Prices
According to the Food Industry Association’s U.S. Grocery Shopper Trends 2023 Holiday Shopping report, shoppers are concerned about rising prices, especially on groceries and gas. In addition, 76% of households with kids are concerned about the rising prices of food from grocery stores, and 56% of households with kids are concerned about holiday gifts.
Fifty percent of holiday shoppers have expressed concerns about rising prices impacting holiday meals and celebrations. Forty-eight percent are worried about the impact on holiday gifts, and 40% of holiday shoppers are concerned about rising prices impacting their holiday travel costs.
Household Spending on Groceries
When it comes to household grocery spending, millennial households allocate $184 per week on groceries. Gen Z allocated the next highest amount at $169 per week, followed by Gen X with $155. Boomers allocate the lowest amount per week, $131.
Deadlines and Reminders
Jan.- Feb. 2024:
- Jan. 1 – Print New Yearly Sales & Use Tax License
- Jan. 1 – Liquor Licensees – Post Updated Age to Purchase Alcohol Sign
- Jan. 1 – Tobacco retailers – Post Updated Age to Purchase Tobacco Sign (optional from We Card)
- Jan. 1 – Minimum Wage increases to $10.33 an hour
- Jan. 1 – MRA scholarship program kicks off, apply through April 1
- Jan. 15 – Open Enrollment for Individual Health Care Coverage deadline
- Jan. 31 – Wage and Tax Statements/Information Returns (W-2, 1099s) give to employees/contractors, submit to IRS/Treasury
- Feb. 1 – Post MIOSHA Form 300A – Summary of Work-Related Injuries and Illnesses (if more than 11 employees) between Feb. 1 and April 30.
- Feb. 15 – Michigan Annual Report Due – Limited Liability Companies (LLC) and Professional Limited Liability with LARA
- Feb. 28 – Michigan Sales, Use and Withholding Tax Annual Return due
Monthly Reminders:
- Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.
- Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.
- Retailer’s Prepaid Wireless 911 Surcharge – within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.
Quarterly Reminders:
- Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15)
- Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20)
- Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20)
- Unemployment Employer’s Quarterly Wage/Tax Reports (Jan. 25, April 25, July 25, Oct. 25)
