Who is required to remit payroll withholding tax? What is Michigan's 2023 payroll withholding tax rate?Registration for withholding tax is required in Michigan using the business' Federal Employer Identification Number (FEIN). Nonresident Alien Tax Compliance Guidelines. Do I have to pay taxes if I am not a U.S. citizen? No FICA tax or State of Michigan tax is withheld from payments to independent contractors.