Michigan Department of Treasury

Withholding Tax Frequently Asked Questions

A. NAME OF PERMIT OR APPROVAL:

Withholding Tax

B. STATUTORY AUTHORITY:

PA 122 of 1941

C. APPLICABLE REGULATION:

Michigan Administrative Code, Rules administered by the Department of Treasury

State Tax Commission General Rules (R 209.1 - 209.75)

D. SUMMARY OF PERMIT/APPROVAL PROCESS:

 1.  Applicability (activities that require the permit)

Register for Withholding Tax if you:

·       Are an employer withholding federal income tax from employee compensation (see Federal Employer's Tax Guide Circular E).

·       Are a partnership, LLC or S Corporation with nonresident partners, members or shareholders (flow-through entity Withholding Tax).

·       Individual owners and partners may not remit withholding on their wages through their business account numbers. They must file quarterly income tax estimates.

 2.  Pre-Application Requirements

·       Obtain a Federal Employer Identification Number (FEIN)

·       Obtain Special Licenses

 3.  Application Submission Requirements

 4.  Procedures and Time-Frame for Obtaining Permit or Approval

Complete the registration process at least six weeks, but not more than six months, before you intend to start your business to allow your registration to be processed.

 5.  Operational Requirements

 6.  Fees

None

 7.  Appeal Process

 8.  Public Input Opportunities

Contact Information:

Contact Us

Creation/Revision Date:

September 15, 2010