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The Michigan Treasury Department issued an update to its recent announcement that the deadline for monthly or quarterly sales, use, and withholding (SUW) returns and taxes due on May 20, 2020 is extended to June 22, 2020 (June 20, 2020, falls on a Saturday) by adding that business taxpayers that have deferred paying their SUW taxes due to the COVID-19 pandemic can now participate in an installment payment option to satisfy their outstanding tax balance.

The installment payment option is not available to accelerated SUW tax filers. Also, business taxpayers that participate in the installment payment option are not eligible for the discount given to those businesses that file their outstanding SUW tax returns and pay their outstanding tax balances in full when due.

As we reported, the extension to June 22, 2020 includes the sales, use, and withholding returns and taxes previously announced extended to May 20, 2020 (monthly or quarterly sales, use and withholding return and taxes due on February 20, 2020, March 20, 2020 and April 20, 2020). (EY Payroll Newsflash Vol. 21, #236, 5-21-2020; EY Payroll Newsflash Vol. 21, 159, 4-15-2020.)

Installment payments

Business taxpayers scheduled to make SUW tax payments for the February, March, April and May tax periods on June 22, 2020 — including quarterly filers — may either pay their outstanding balance in its entirety or pay their outstanding balance in monthly/quarterly payments. Penalties and interest will be waived on the deferred payments.

To take advantage of the installment payment option, monthly filers should submit their outstanding returns for February, March, April and May 2020 tax periods by June 22, 2020, to establish their installment balance. Monthly filers can then make six monthly payments on that balance from June to November 2020. Quarterly filers should submit their outstanding first quarter return 2020 by June 22, 2020, to establish their installment balance. Quarterly filers can then make three payments on that balance in June, September and November 2020.

To ensure accurate reporting of the payments, each installment payment must be submitted separately from any tax payment otherwise due in that tax period.Taxpayers must follow the payment instructions as outlined in theTreasury Department's notice.

See also the FAQs regarding the installment payment option. Businesses do not need to contact or submit any documentation to the Department to participate in the installment plan.

For the SUW tax deadline in July 2020 and deadlines through the remainder of the year, businesses must file their monthly or quarterly SUW returns and submit their payments as normally scheduled.

Businesses with questions should inquire through self-service options usingMichigan Treasury Online or go towww.michigan.gov/askSUW.

For information on the Department's response to COVID-19, go here.

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EY Payroll News Flash