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Independent Contractor Test in Michigan

For unemployment insurance, Michigan decides employee status using the IRS 20 factor test from Revenue Ruling 87-41.

Last checked . General information, not legal advice.

Michigan at a glance

Test for unemployment insurance
IRS 20 factor test
Since January 1, 2013, the agency applies the IRS 20 factor test; federal income tax withholding is prima facie evidence of employment.
ABC test for unemployment
No

Sources

Last checked

The rules in Michigan

Which test does Michigan use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Michigan: IRS 20 factor test. Since January 1, 2013, the agency applies the IRS 20 factor test; federal income tax withholding is prima facie evidence of employment.

Does Michigan apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Michigan: no.

Where do the Michigan independent contractor tests come from?

The rules above come from Mich. Comp. Laws 421.42. Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.