I am not a new business but I am hiring employees for the first time, how do I compute the Michigan Obligation Company Rate?

It's nice to have you here, irbki.

Company rates will automatically calculate once you set this up in QuickBooks Desktop.

When you setup an employee for Michigan State, QuickBooks will suggest a list of taxes applicable for Michigan. You'll just have to click the Yes button to allow it automatically create a payroll item for Michigan Obligation Company.

Here's how:

1. From the Employees menu, choose Employee Center.
2. Click New Employee.
3. Fill in the necessary information.
4. Go to the Payroll Info tab and click Taxes.
5. Choose Other tab, a message prompt will provide a list of applicable taxes for Michigan, select Yes.
6. Click OK.

Once you're ready to run a payroll, QuickBooks automatically calculates the tax rates.

To be updated with the most recent tax rates for Michigan, you can check out this article: Michigan Payroll Tax Compliance.

You might also want to check out this article to learn about setting up taxes in QuickBooks Desktop. Create or set up local taxes.

Always get back to me if you need more help or have additional questions. I'd be happy to assist. Have a good one.  

Thank you. I am still having a bit of trouble though. 

The tax is actually already listed, I just do not know how to compute it. Under Payroll Setup, I have created an employee.  I click Run Payroll. Under State Taxes (attached), there was already a MI - Obligation Assessment. I hard typed 2.42% but I have no idea if that is correct. I cannot move past this screen without filling in a percentage. This State Tax was there without me having to add it, I just don't know how to compute the correct amount.

Thanks!