Withholding Tax Information
Effective October 1, 2012, the income tax withholding rate will change to 4.25% and the personal exemption amount will change to $3,950. The pension and/or retirement benefit withholding rate will also change to 4.25%, however, there is no adjustment to the monthly pension deduction amount. Withholding Tables have been updated.
Who is required to register for withholding tax?
Every employer in this state who is required to withhold federal income tax under the Internal Revenue Code, must be registered for and withhold Michigan income tax. Nonprofit organizations that are exempt from income tax, such as charitable, religious and governmental organizations, must withhold tax from compensation paid to their employees. Employers located outside Michigan that have employees who work in Michigan must register and withhold Michigan income tax from all employees working in Michigan.
To Register for Withholding Tax
Applications must be mailed or faxed to:
Department of Treasury
Lansing, MI 48922
Fax: 517 636-4520.
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