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Starting Your Business
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General information on filing your business taxes.
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Answer:
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Unemployment Taxes
What are the filing requirements for newly registered employers?
Newly liable Contributing Employers must pay unemployment insurance taxes and are required to file Form UIA 1020, Employer's Quarterly Tax Report and Form UIA 1017, Wage Detail Report , for the period beginning with the first calendar quarter in which they had employees. Successor Employers file from the date of transfer of ownership (date of acquisition). Reimbursing Employers do not file form 1020, but are required to file form 1017, quarterly. The forms are available on-line.
When are tax and wage reports (and payments) due?
Tax reports and payments and wage reports are due by the 25th day of the month following the end of each quarter, to be considered timely.
First quarter - January 1st through March 31st - due April 25th
Second quarter - April 1st through June 30th - due July 25th
Third quarter - July 1st through September 30th - due October 25th
Fourth quarter - October 1st through December 31st - due January 25th
How much is the Unemployment Insurance Tax?
A Reimbursing Employer reimburses, dollar for dollar, the amount of unemployment benefits paid to former employees by the Unemployment Insurance Agency. This dollar amount is charged to the employer's unemployment account.
Contributing Employers pay on the first $9,000.00 of wages paid to each covered employee, per calendar year. $9,000.00 is the current wage limit, per calendar year. This "taxable" amount is multiplied by the employer's unemployment tax rate.
How is the unemployment tax rate computed?
The tax rate for the first two years of a business's liability is set by law and is 2.7% of the employer's total taxable payroll. However, tax rates for employers in the construction industry are based on the Average Contractor Rate (ACR) and are announced early every year by the UA.
The rates in the third and fourth years of liability are partly based on the employer's own history of benefit charges and taxable payroll. This history is known as an employer's unemployment insurance experience .
Beginning in the fifth year of liability, the tax rate is made up of three components, which are computed separately and then added together to figure the yearly tax rate.
Tobacco Taxes
When is my return due?
The monthly return must be postmarked by the 20th of the month following the end of the reporting period. For example, the January return must be postmarked by February 20th.
Who must file a tobacco tax return?
Licensed wholesalers and unclassified acquirers must complete the monthly tobacco tax return even if no tax is due.
All Other Taxes
How often do I file my tax return?
The Registration Section of the Michigan Department of Treasury will provide you with payment coupons once you have completed the registration process. Your account will be reviewed and based on your total expected tax liability, your account will be designated as a Monthly (over $3,600annual tax liability), Quarterly ($750 - $3,600), or Annual ($0 - $750) Filer.
When is the return due?
Monthly Filer - on or before the 15th day of the following month
Quarterly Filer - on or before the 15th day of month following the quarter
Annual Filer - February 28th, with discount for early remittance
NOTE: EFT - Electronic Funds Transfer - Accelerated Filers
Taxpayers who average more than $720,000 of sales or use tax each year or average more than $480,000 of withholding tax each year, pay more frequently by approved electronic funds transfer methods. Applications may be obtained by calling (517) 373-8547.
Single Business Tax
When is the return due?
The return is due on the last day of the 4th month after the tax year-ends. It must be filed for the same tax period covered by the federal income tax return.
Which SBT return should be filed?
Businesses with a tax liability for SBT must file using either a Single Business Tax Annual Return (C-8000) or if eligible, a Single Business Tax Simplified Return (C-8044) . If adjusted gross receipts is less than $250,000 a Single Business Tax Notice of No SBT Return Required (C-8030) may be filed.
Who needs to file an SBT return?
Any "person" engaged in a business activity in Michigan whose adjusted gross receipts are $250,000 or more in a tax year is required to file a return. A "person" is an individual, firm, bank, financial institution, partnership, limited partnership, co-partnership, joint venture, association, corporation, limited liability company, receiver, estate, trust or any other combination acting as a unit.
If a business operated less than 12 months (and is not a sole proprietorship), it must annualize adjusted gross receipts to determine whether it meets the filing requirement.
Special circumstances apply for controlled groups. Members with adjusted gross receipts of $100,000 or more may be required to file.
What if the adjusted gross receipts are less than $250,000?
If adjusted gross receipts are below the filing requirement, there is no legal obligation to file a return. If a person is registered for SBT, they may want to notify the Department of Treasury officially that they do not have a liability to prevent any inquiries by the Department. Filing a Single Business Tax Notice of No SBT Return Required (C-8030), may avoid further correspondence from the Department.
Who must file SBT quarterly tax estimates?
If the estimated liability for the tax year is over $600, quarterly estimates must be filed with payment. For calendar year taxpayers, quarterly returns are due the last day of April, July, October and January. For fiscal year filers, quarterly returns are due the last day of the first month after each quarter.
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