The Michigan Treasury Department has released the 2019 wage-bracket income tax withholding tables. The 2019 flat withholding rate (and supplemental withholding rate) will remain at 4.25%.

As we previously reported, legislation enacted earlier this year changes the due date for filing Forms W-2 with the Department to January 31 effective with tax year 2018 (due January 31, 2019). (L. 2018, H5091, P.A. 118; EY Payroll Newsflash Vol. 19, #078, 5-1-2018.)

Also effective for the 2018 tax year, the law requires employers with 250 or more employees to electronically file Form 5081, Sales, Use and Withholding Taxes Annual Return. However, the deadline for filing the annual return remains at February 28, 2019.

Revised 2018 withholding tables were released

As we reported previously, the Department 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 remained at 4.25%. (EY Payroll Newsflash Vol. 19, #080, 5-3-2018.)

2018 Forms W-2 filing reminders

The calendar year 2018 Forms W-2 must be filed with the Department by January 31, 2019.

Beginning January 2019, employers using Michigan Treasury Online (MTO) will be able to upload Forms W-2 electronically prior to filing Form 5081, 2018 Sales, Use and Withholding Taxes Annual Return. Employers filing 250 or more Forms W-2 are required to electronically file both Forms W-2 and 5081. However, the deadline for filing Form 5081 continues to be February 28, 2019.

New for calendar year 2018, the Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs, and 1099s to the State of Michigan instructions state that employers with 250 or more employees must submit Forms W-2 to the Department electronically using MTO. Only smaller employers are allowed to send magnetic media (CD or 3480/3490 tape cartridge) by mail, but are not required to do so. See Form 447 for filing and format instructions.

2018 Form 1099-MISC for miscellaneous income for services performed in Michigan, whether or not Michigan income tax was withheld, must be filed with the Department by January 31, 2019. Payers reporting Michigan withholding on 2018 Form 1099-R must report 1099-R to the Department by January 31, 2019.

For more information see the Department's website.

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EY Payroll News Flash