PEO companies in Michigan: license lookup, costs and city taxes
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Michigan requires every PEO to hold a license from the Department of Licensing and Regulatory Affairs (LARA) under Act 370 of 2010, renewed each year by August 31. For a 10-person Michigan team, Justworks, the top-scored PEO we track, costs $9,480 to $14,880 a year (pricing checked October 16, 2026), and Michigan unemployment tax adds 2.7% on the first $9,000 per new employee, or $2,430.
The Michigan-specific work for a PEO is local: 24 cities levy their own income tax, and the state minimum wage jumps to $15.00 on January 1, 2027.
A PEO in Michigan is a professional employer organization licensed by LARA under Public Act 370 of 2010 to co-employ a client's workers and run their payroll, taxes and benefits.
On this page
The LARA license and the August 31 renewal
LARA's Corporations, Securities and Commercial Licensing Bureau issues PEO licenses. Because they renew every August 31, a check done in July can be out of date by September. LARA offers a license lookup through its Accela system and a license list and data page.
- Get the exact legal name of the PEO entity from the draft service agreement.
- Search it in LARA's Accela lookup and note the expiration date.
- Check the same entity against the IRS active CPEO list (August 7, 2026) on our CPEO directory.
We did not run these lookups for the PEOs ranked below; their Michigan license status is not confirmed.
City income taxes in 24 Michigan cities
Michigan's state income tax is a flat 4.25% for 2026, with a $5,900 personal exemption. City taxes are separate; our count of 24 cities could not be checked against Michigan Treasury's city list, which did not load on October 16, 2026. Detroit charges 2.4% for residents and 1.2% for nonresidents who work there, and employers withhold from both. Michigan Treasury processes Detroit city returns and will add Flint returns from January 1, 2027.
This is where PEO payroll errors tend to start: an employee moves into Detroit, or works in one city and lives in another, and the city code on file is wrong. An Insperity reviewer on Trustpilot (September 3, 2026) described multi-state payroll that was wrong for months; local taxes carry the same risk. Ask how the PEO assigns city tax codes and who pays the penalty when one is wrong.
Cost of a Michigan PEO for 10 people
Michigan's 2.7% new employer rate on a $9,000 wage base works out to $243 per employee. Experienced rates run from 0.06% to 12.2%, so a layoff history can raise this line a lot. Assumptions: 10 people at $50,000.
| Cost line | How it is figured | Per year |
|---|---|---|
| Justworks PEO Basic fee | $79 x 10 employees x 12 months | $9,480 |
| Justworks PEO Plus fee | $124 x 10 employees x 12 months | $14,880 |
| Industry admin fee range (estimate) | $40 to $160 x 10 x 12 (ADP guide, July 14, 2026) | $4,800 to $19,200 |
| FUTA | 0.6% net x first $7,000 x 10 | $420 |
| Michigan UI | 2.7% new employer rate x first $9,000 x 10 | $2,430 |
| Justworks fee plus unemployment and state program taxes | Basic or Plus fee + FUTA and Michigan UI ($2,850 together) | $12,330 to $17,730 |
| Employer FICA (owed with or without a PEO) | 7.65% x $50,000 x 10 | $38,250 |
| All-in with Justworks, before health premiums and workers' comp | Line above + employer FICA | $50,580 to $55,980 |
| All-in at the industry fee range | $40 or $160 fee + all taxes above | $45,900 to $60,300 |
UIA wage base and rate for 2026. Justworks prices read October 16, 2026; ADP industry estimate from July 14, 2026. Michigan has no state disability or paid leave payroll program; delinquent employers use a $9,500 base; city income taxes come out of employee pay.
Premiums and workers' comp are quoted per company. Our PEO cost explainer shows how to separate them from the admin fee.
Michigan PEO rankings
The order is the same national score we publish on every PEO page. Justworks (67), TriNet (50) and ADP TotalSource (44) lead, and Paychex PEO (34) is the option for very small firms that start on Paychex payroll.
| PEO | Score | Published price | On IRS CPEO list (Aug 7, 2026) | Michigan coverage |
|---|---|---|---|---|
| 1. Justworks | 67 | $79 to $124 per employee per month | Yes (Justworks Employment Group LLC and 3 related) | Not confirmed: Multi-state stated, no state list |
| 2. TriNet | 50 | Quote only | Yes (TriNet HR III-B, Inc.) | Not confirmed: Multi-state stated, no state list |
| 3. ADP TotalSource | 44 | Quote only | Yes (ADP TotalSource, Inc. and related) | Not confirmed: Multi-state stated, no state list |
| 4. Paychex PEO | 34 | Quote only | Yes (Paychex PEO VI LLC, VII, Oasis HR Solutions III) | Not confirmed: Multi-state stated, no state list |
| 5. Insperity | 33 | Quote only | Yes (Insperity PEO HR, Inc.; Insperity PEO Services, L.P.) | Not confirmed: Not stated |
| 6. BBSI | 26 | Quote only | Not found | Not confirmed: Multi-state support, no state list |
| 7. Amplify HR Management | 23 | Quote only | Yes (Amplify HR Management, LLC) | Not confirmed: Not stated |
| 8. ExtensisHR | 22 | Quote only | Yes (Extensis Inc. and 5 related) | Not confirmed: "Across the country", no state list |
| 9. Engage PEO | 21 | Quote only | Yes (Engage PEO, LLC) | Not confirmed: Not stated |
| 10. PrestigePEO | 20 | Quote only | Yes (3 Prestige entities) | Not confirmed: "National", no state list |
| 11. Questco | 20 | Quote only | Yes (QUESTCO HR LLC) | Not confirmed: "From Arizona to Nebraska and beyond" |
| 12. Sequoia One | 17 | Quote only | Yes (Sequoia One PEO, LLC) | Not confirmed: Not stated |
| 13. Rippling PEO | 11 | Quote only | Not found under the Rippling name | Not confirmed: Not stated |
| 14. G&A Partners | 8 | Not verified | Likely match, unconfirmed | Not confirmed: Not verified (site blocked) |
| 15. Vensure | 8 | Quote only | Not found under the Vensure name | Not confirmed: Not stated |
Michigan coverage and prices from PEO sites (October 16, 2026). Certification from the IRS report of August 7, 2026. Score method, October 17, 2026. LARA licenses not checked.
The Paychex PEO review and Insperity review cover the two quote-only PEOs most often pitched to smaller Michigan firms.
The $15 minimum wage and workers' comp threshold
Michigan's minimum wage is $13.73 in 2026 for employers with 2 or more employees and rises to $15.00 on January 1, 2027, then follows a yearly formula. The tipped cash wage is $5.49 and climbs each year until it reaches 50% of the minimum wage in 2031. A percent-of-payroll PEO fee grows with every one of those steps; a flat per-employee fee does not.
Workers' comp applies once you have 3 or more employees at one time, counting part-time staff, or 1 employee who works 35 or more hours a week for 13 weeks in the past 52. Michigan has no monopolistic state fund, so coverage can come through the PEO's own insurer. Ask for that premium as its own line.
Final pay for a fired worker is due as soon as the amount can be worked out with due diligence. See the Michigan payroll tax guide for UIA registration.
Questions to ask a Michigan PEO
- Which entity holds the LARA license, and when does it expire?
- How do you assign city tax codes for staff who live and work in different cities?
- Is your fee fixed per employee, or will it rise with the 2027 wage increase?
- Will Michigan UI run under your UIA account or ours?
- What does leaving cost? A competitor's guide (Gusto, August 2, 2026) says Paychex PEO exits need written notice by mail and can carry transition and early termination fees.
For the case against co-employment, read PEO or payroll service and our national PEO scores.
Frequently asked questions
Do PEOs need a license in Michigan?
How much does a PEO cost in Michigan?
Will a PEO withhold Detroit city income tax?
What is the Michigan minimum wage in 2027?
When does a Michigan employer need workers' comp?
Sources (15)
- Justworks: Justworks pricing (PEO Basic and PEO Plus) (checked Oct 16, 2026)
- TriNet: TriNet PEO pricing (checked Oct 16, 2026)
- ADP: What is the cost of a PEO (updated July 14, 2026) (checked Oct 16, 2026)
- IRS: Active certified PEO list (report date Aug 7, 2026) (checked Oct 16, 2026)
- Michigan LARA: Professional employer organization licensing (checked Oct 16, 2026)
- Michigan LARA: License lookup (Accela) (checked Oct 16, 2026)
- Michigan UIA: Taxable wage base FAQ (checked Oct 16, 2026)
- Michigan Treasury: Withholding: calendar year tax information (checked Oct 16, 2026)
- Michigan Treasury: City income tax (checked Oct 16, 2026)
- Michigan WDCA: Employer frequently asked questions (checked Oct 16, 2026)
- US Department of Labor: State minimum wage laws (checked Oct 16, 2026)
- Paychex: Paychex PEO (checked Oct 16, 2026)
- Insperity: Insperity pricing (checked Oct 16, 2026)
- Trustpilot: Insperity reviews (2.6 from 10 reviews) (seen Oct 16, 2026)
- Gusto (competitor guide): How to cancel Paychex (Aug 2, 2026) (checked Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.