23 January 2020 Michigan 2020 withholding rate unchanged; Form MI-W-4 update; 2019 Forms W-2 filing reminders The Michigan Treasury Department has released the 2020 wage-bracket income tax withholding tables. The 2020 flat withholding rate (and supplemental withholding rate) remains at 4.25%.The 2020 personal exemption increases to $4,750, up from $4,400 for 2019. The Michigan Income Tax Withholding Guide has also been updated for 2020. In addition to the federal Form W-4, Michigan employees must submit Form MI-W4, Employee's Michigan Withholding Exemption Certificate, to their employer on or before the date that employment begins. Federal Form W-4 cannot be used in place of the Michigan Form MI-W4. Failure by an employee to submit the state withholding certificate must result in the employer withholding state income tax from employee compensation without allowance for any exemptions. Employers continue to be required to notify the Michigan Department of Treasury if an employee claims 10 or more personal and dependent exemptions or claimed a status which exempts the employee from withholding. Employees are required by the Department to submit a new Form MI-W4 to their employer within 10 days of a residency status change or if the employees' exemptions decrease because: a) their spouse, for whom they have been claiming an exemption, is now divorced or legally separated from the employee or claims his/her own exemption(s) on a separate certificate, or b) a dependent must be dropped for federal purposes. The calendar year 2019 Forms W-2 must be filed with the Department by January 31, 2020. Employers with 250 or more employees must electronically file Forms W-2 and Form 5081, Sales, Use and Withholding Taxes Annual Return,over the Department's Michigan Treasury Online (MTO) system. Although the deadline to file Forms W-2 is January 31, 2020, the deadline for filing the Form 5081 annual return remains at February 28, 2020. (Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs, and 1099s.) The calendar year 2019 Form 5081 indicates that the option for smaller employers to file the form on paper will be discontinued in future years. 2019 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, 2020. For more information see the Department's website.
Document ID: 2020-0166 | |||||||||
