03 May 2018 Michigan 2018 revised wage-bracket withholding tables, employer guide released; withholding rate remains at 4.25% The Michigan Department of Treasury recently issued an updated 2018 Michigan Income Tax Withholding Guide and revised 2018 wage-bracket withholding tables effective with wages paid on and after March 1, 2018. The income tax and supplemental withholding rate remains at 4.25%. The exemption amount for 2018 is $4,050. The procedures outlined in the updated employer guide continue to require new employees and current employees wishing to update their state withholding to submit state Form MI-W4, Withholding Exemption Certificate. Employees continue to be entitled to claim the number of personal and dependency exemptions from withholding as will be claimed on the Michigan state income tax return. Employees may claim exemption from withholding only if they do not anticipate a Michigan income tax liability for the current year because their employment is less than full-time and the personal and dependency exemptions exceed their annual compensation. The updated withholding guide indicates that employers continue to be required to submit to the state a copy of any Form MI-W4 (not federal Form W-4) received from employees who: — Claim exempt from withholding tax. Employers must also submit Forms MI-W4 for employees who change their withholding status to exempt. — Part-time or student employees whose expected earnings will be less than their exemption allowance. Forms MI-W4 should be submitted separately to the Department and not attached to the Sales, Use, and Withholding tax return. Include copies of any written statement or explanation from the employee supporting the claim made on the Form MI-W4. For more information see the Department's website.
Document ID: 2018-0936 | |||||||||
