February 19, 2020 Michigan reminder that the 2019 withholding reconciliation is due February 28, 2020 | New streamlined annual reconciliation form available electronically for smaller employers The Michigan Treasury Department reminds employers that even though the 2019 Forms W-2 were due to the Department by January 31, 2020, the deadline to file the calendar year 2019 Form 5081, Sales, Use and Withholding (SUW) Taxes Annual Return, remains February 28, 2020. Employers that filed 250 or more Forms W-2 are required to file Form 5081 electronically over the Department's Michigan Treasury Online (MTO) system. The Department released a new, streamlined annual reconciliation form, the Form 5081 EZ, Sales, Use and Withholding Tax EZ Annual Return, that businesses with less than $10 million in gross receipts and no allowable deductions or exemptions can file in place of the Form 5081. The new form is available exclusively through MTO, meaning it must be filed electronically, and requires approximately one-third of the information required on the standard Form 5081 annual return. (Email, February 14, 2020.) To use new Form 5081 EZ, go to the Michigan Treasury Online Help Centerand create a Michigan Treasury Online account. No personally identifiable or sensitive information will be required, but employers will need their Treasury business account number and sales, rental and payroll records for the tax year to use Form 5081 EZ. According to the Department, more than 42,200 business taxpayers have already opted to use the new Form 5081 EZ, accounting for more than half of SUW Tax annual returns e-filed to date. "Our new SUW Tax EZ Annual Return option requires less time, less taxpayer information and is completely paperless," said Deputy State Treasurer Glenn White, who oversees the Michigan Treasury's Tax Administration programs. "Michigan Treasury Online makes filing returns and paying your business taxes easy. If you meet the criteria, take advantage of this new EZ form." Michigan 2020 withholding tables and guide available As we previously reported, the Department released 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. (EY Payroll Newsflash, Vol 21, #025, 1-23-2020.) Michigan Form MI-W4 required 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. The Department requires an employee to submit a new Form MI-W4 to the employer within 10 days of a residency status change or if the employee's exemptions decrease because: a) the spouse for whom the employee had been claiming an exemption is 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. For more information on Michigan withholding tax, see the Department's website. ———————————————
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