28 February 2017 Detroit employers - change in due date for reporting and paying city withholding taxes Employers withholding Detroit city income taxes, beware! The deadline for submitting city withholdings has changed from the last day of the month following the calendar period withheld (i.e., for quarterly filers, April 31 for first quarter withholdings) to the 15th of the month (April 17, 2017 for the first quarter 2017 (extended from April 15, 2017 due to deadline falling on a Saturday)). Monthly filers were required to file and pay January 2017 withholdings with the state Department of Treasury by February 15, 2017, rather than by February 28, 2017 with the City of Detroit Finance Department. According to a Treasury customer service representative, employers that missed the February 15, 2017 deadline should immediately file and pay the withholding tax return and payment and submit a letter with the return requesting a waiver of the interest and penalty charges. Requests for a one-time waiver will be processed on a case-by-case basis. To speak with a Treasury Customer Service Representative call +1 517 636 5829 or send an email to Treas-CityBusinessTax@michigan.gov. Employers withholding City of Detroit income tax are required to file City of Detroit Income Tax Withholding Monthly/Quarterly returns (Form 5323) either monthly ($1,200 or more withheld per year) or quarterly ($1,199 or less withheld per year) with the state Department of Treasury. Payment of withheld city taxes may be submitted by check with the return or electronically using the Department's electronic payment system. As we reported previously, the Michigan Department of Treasury announced that beginning January 1, 2017 it began to collect and enforce the City of Detroit's income tax withholding and will administer the City's corporate, partnership and fiduciary income tax return processes. As part of Detroit's post-bankruptcy management plan, the Department entered into an agreement to process the City's individual income tax returns for calendar year 2015 (due in 2016) and business and fiduciary Income Tax returns beginning with the 2016 tax year. Due to the success of the first stage, the Department began to collect and administer the city's corporate tax and income tax withholding as of January 31, 2017. (EY Payroll NewsFlash Vol. 16, #262, 10-1-2015.) Forms, instructions, and additional information are available on the Michigan Department of Treasury's website. See also the 2017 City of Detroit Income Tax Withholding Guide.
Document ID: 2017-0395 | |||||||||||
