State tax filing

First, I am going to assume you have a penalty and when you entered your prior year information, it still showed. If you  substantially underpay, you will have a penalty. If you owed last year, you should have changed your w4 at work to have more withheld. There is a little box, take an additional, $xx for state tax you can select to have more withheld. Your tax payments withheld are estimated payments. 

• You need to change your w4 with payroll now since this is mid - April and be sure to compensate for the missed time for 2025 as well. 
• Another option is to just pay the state online, making estimated payments directly at Pay Your Michigan Individual Income Tax Online.

Why am I being charged penalty and interest? states:

The Michigan Department of Treasury follows the Internal Revenue Service (IRS) guidelines for estimated tax requirements. Based on the IRS estimated income tax requirements, to avoid penalty and interest for underpaid estimates, your total tax paid through credits and withholding must be:

• 90% of your current year's tax liability or
• 100% of the previous year's tax liability or
• 110% of your previous year's tax liability if your previous year's adjusted gross income is more than $150,000 ($75,000 for married filing separately)

Penalty is 25% for failing to file estimated payments or 10% of underpaid tax per quarter. Interest is 1% above the prime rate.

For more information view Penalty and Interest for Underpayment of Estimates (MI-2210)

Penalty and Interest for Underpayment of Estimates (MI-2210)Penalty is 25 percent of the tax due (with a minimum of $25 per quarter) for failing to make estimated payments or 10 percent (with a minimum of $10 per quarter) for failing to make sufficient estimated payments or making estimated payments late.

@Jeff198