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Depositing and Reporting Withheld Taxes: Michigan

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • An employer's filing status depends on the amount of the employer's total sales, use and withholding tax liability in a calendar year. Returns and payment are due on or before the 20th of the month following the tax period, whether monthly or quarterly. Accelerated withholding tax payments must be made according to the same schedule as the employer's federal withholding payments. Annual filers must deposit by February 28th of the following year. Penalties are imposed for noncompliance.

    See Deposit and Filing Frequencies and Thresholds;

    Deposit and Filing Due Dates;

    Penalties.

  • Certain employers are required to deposit taxes via electronic funds transfer (EFT). See Electronic Deposit Requirements.
  • All employers must file an annual reconciliation return by February 28 if the following year. In addition, employers with 250 or more Michigan employees must file Forms MI-W-2 on magnetic media by February 28 of each year for the previous calendar year.

    See Annual Reconciliation Forms and Filing Deadlines;

    Electronic and Magnetic Media Form W-2 Reporting Requirements.

  • Michigan employers must file a return furnished by a city that collects an income tax under the Uniform City Income Tax Ordinance, and pay to the city the full amount of tax withheld on or before the last day of the month following the close of each applicable period. Some cities require payment by electronic funds transfer. In Detroit, monthly payments are required if the amount withheld per month exceeds $100; quarterly payments are required if the amount withheld per month is $100 or less. All Detroit employers must file Form D-941 for each calendar quarter, even if no tax was withheld or if all tax withheld was previously paid. See Local Payroll Taxes.