Income Record Forms (W-2s and 1099s) FAQs

"Income record forms" are defined as Michigan copies of Forms W-2, W-2 C, W-2 G, 1099-R, 1099-MISC, and 1099-NEC. "Wage statements" are a sub-set of these forms, that is, Michigan copies of Forms W-2, W-2 C. The IRS refers to the federal version of income record forms as "information returns".

You may find that Treasury staff use the terms "wage statements" and "income record forms" interchangeably. However, wage statements are technically a subset of income record forms. Wage statements refer to Michigan (state) copies of Forms W-2, W-2 C. Income record forms are Michigan (state) copies of Forms W-2, W-2 C, W-2 G, 1099-R, 1099-MISC, and 1099-NEC.

Any W-2 that indicates Michigan withholding must be filed with Treasury, regardless of residency status.

Treasury requires state copies of the following W-2s:

• W-2, when issued to an employee for work performed in Michigan or to report Michigan income tax withheld.
• W-2 C, if withholding was erroneously underreported on the original W-2.
• W-2 G, to report Michigan gambling winnings and withholding.
• Any other W-2 type form that indicates Michigan withholding.

Any 1099 that indicates Michigan withholding must be filed directly with Treasury, regardless of residency status.

Treasury requires 1099 issuers (specifically 1099-R, 1099-MISC, and 1099-NEC) to file state copies whenever issued to a Michigan resident, without regard to:

• where the issuer is domiciled,
• where the resident's work or services were performed, or
• whether or not withholding is indicated on the form.
• Any other 1099 form that indicates Michigan withholding must be filed with Michigan (including Form 1099-K).

The IRS determines if a person or business paying compensation to another person or business has an employee or contractor relationship. Generally, the type of income record form issued depends on the relationship (W-2s for employer/employee relationships; 1099s for independent contractor/non-employee relationships). As it relates to income tax, an employee relationship requires an employer to withhold on wages; in a contractor relationship, the worker is responsible for their own income tax. Generally, a contractor can request withholding from their pay. The business receiving contractor services could agree to withhold on the contractor's behalf.

Michigan follows federal withholding guidelines. For further information on determining of you have an employee or contractor relationship with someone who works for you, refer to IRS Publication 15, Employer's Tax Guide (Circular E) and the Michigan Unemployment Insurance Agency (UIA) Fact Sheet 155.

No, SSNs should be unobstructed and unaltered on income record forms.

Historically, Form 1099-MISC was used to report miscellaneous income and nonemployee compensation. However, beginning tax year 2020, nonemployee compensation has a stand-alone form: 1099-NEC. Form 1099-MISC is now used to report truly miscellaneous income like royalties, rents, prizes/awards, crop insurance, etc.

Treasury requires state copy filing of Form 1099-MISC per MCL 206.707(1). Treasury requires state copy filing of Form 1099-NEC per Internal Revenue Code (IRC Chapter 61; Section 331). While Form 1099-NEC is included in the Combined Federal/State Filing Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury.

Most state copies of income record forms are due to Treasury on or before January 31. Form 1099-MISC is the exception: paper filed due February 28, electronically filed due March 31.

Treasury is unable to send copies of past filed income record forms. W-2s and 1099s are federal forms. Accordingly, you should make this request to the IRS.

Treasury cannot provide tax preparation or legal advice. Because W-2s and 1099s are federal forms, the IRS regulates who is required to issue income record forms. Michigan follows federal guidelines.

For detailed filing options and instructions, refer to Treasury's Income Record Form Remittance Guide. Business taxpayers, issuers, and service providers are encouraged to send state copies of W-2s and 1099s to Treasury electronically whenever possible.

It depends. Issuers with 250 or more income record forms must use Michigan Treasury Online (MTO) to send a magnetic media formatted file electronically. Issuers with fewer than 250 income record forms, may utilize any filing option listed in Treasury's Income Record Form Remittance Guide.

Business taxpayers, issuers, and service providers are encouraged to send state copies of W-2s and 1099s to Treasury electronically whenever possible.

No, income record forms and the SUW Annual Return must be sent separately regardless of filing method.

No. Do not send a copy of an already filed tax return with income record forms. Do not mail an original annual return filing with an income record form submission.

While duplicate W-2 and 1099 reporting is not preferred and should be avoided, it does not cause compliance issues with Treasury.

Yes, Michigan participates with the CF/SF Program. This means that the Internal Revenue Service (IRS) shares certain income record form information, automatically satisfying a taxpayer's filing requirement with Treasury. The exception to this general rule is Form 1099-NEC. While Form 1099-NEC is included in the CF/SF Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury.

In order for a taxpayer or their service provider to take advantage of this program, they must apply with the IRS and remit eligible income record forms electronically through the Filing Information Returns Electronically (FIRE) System.

Publication 1220 is an IRS document, updated annually, to provide guidance on the electronic remittance process for various federal returns, in magnetic media format, through the Filing Information Returns Electronically (FIRE) System. Taxpayers and service providers may use the layout or schema outlined in Publication 1220 to send magnetic media to Michigan.

Certain income record forms filed through the FIRE System will be automatically shared with Michigan through the CF/SF Program. The exception to this general rule is Form 1099-NEC. While Form 1099-NEC is included in the CF/SF Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury. Taxpayers and service providers wishing to take advantage of this program must apply with the IRS.

EFW2 is a type of electronic data file format used by employers and service providers to send W-2 forms to the federal Social Security Administration (SSA). Every year, the SSA publishes a document, Specifications for Filing Forms W-2 Electronically (EFW2), which provides filing instructions and specifications on preparing data files in the EFW2 format.

You can copy the EFW2 file to Treasury to satisfy your Michigan W-2 reporting requirement by using MTO's EFW2 Upload Guest Service. Taxpayers and service providers wishing to take advantage of this program must apply with the SSA.

You are only required to electronically file in the specified magnetic media format if you issue 250 or more income record forms. If you issue fewer than 250 income record forms, you may scan the physical forms and upload them in PDF format. Refer to Treasury's Income Record Forms Remittance Guide for all filing options.

While Treasury only requires the state copy of W-2s and 1099s, you do need to create a separate file for Michigan-specific records.

You should check with QuickBooks. Treasury cannot guarantee your service provider will send state copies of income record forms to Michigan. You can send a copy of a federally formatted file (magnetic media in Publication 1220 or EFW2 format) electronically to Michigan using one of the MTO options outlined in the Income Record Forms Remittance Guide.

Yes. The SSA does not file share with Michigan. Therefore, you must remit W-2 data required by Michigan directly with Treasury if QuickBooks is not doing it for you. You can upload your EFW2-formatted, SSA file through MTO's EFW2 Upload option under Guest Services. There is a tutorial covering this process in the MTO Help Center.

Yes. The SSA does not file share with Michigan or other states.

No. The IRS only shares certain income record forms with Michigan if filed through the FIRE System and the form qualifies for the Combined Federal/State Filing Program (CF/SF). The exception here is Form 1099-NEC which must be filed directly with Treasury regardless of federal filing method.

View Treasury's Income Record Forms Remittance Guide for W-2 and 1099 filing options.

W-2s and 1099s are federal forms that have a federal copy and a state copy. The state copy should be filed with Michigan Treasury when applicable. For more information on required forms and filing options, visit Treasury's Income Record Forms Remittance Guide.

You did nothing wrong. We convert your computer file name to a file name that is compatible with our system. The confirmation number and date of submission listed in the History table is your proof of W-2 and/or 1099 submission.

It depends. Issuers with 250 or more income record forms must use MTO to send a magnetic media formatted file electronically. Issuers with fewer than 250 income record forms, may utilize any filing option listed in Treasury's Income Record Form Remittance Guide. Business taxpayers, issuers, and service providers are encouraged to send state copies of W-2s and 1099s to Treasury electronically whenever possible.

Treasury accepts mailed state copies of 1099s (no cover letter required) from issuers with fewer than 250 income record forms to:

Michigan Department of Treasury
Lansing, MI 48930

Income record forms should be mailed separately by issuer's employer identification number or Treasury account number.

To ensure receipt of W-2s and 1099s, use Michigan Treasury Online (MTO). You will receive a confirmation number when your upload is transmitted successfully.

Income record form filing requirements are separate from tax return filing requirements, although both are required if you have a withholding tax liability (pension or payroll) or other business tax obligations.

Magnetic media is a federal reporting schema developed to communicate W-2 and 1099 data without sending physical form copies. Treasury accepts physical or electronic magnetic media in the formats specified by the Internal Revenue Service's Publication 1220 or the schema specified by the Social Security Administration's Specifications for Filing Forms W-2 Electronically (EFW2). Each of these federal publications are updated annually.

Please refer to Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s for guidance on magnetic media.

Forms W-2, W-2 C, W-2 G, 1099-R, 1099-MISC, and 1099-NEC are available to be filed by magnetic media in Michigan.

It depends. Issuers with 250 or more income record forms must use MTO to send a magnetic media formatted file electronically. Issuers with fewer than 250 income record forms, may utilize any filing option listed in Treasury's Income Record Form Remittance Guide. Business taxpayers, issuers, and service providers are encouraged to send state copies of W-2s and 1099s to Treasury electronically whenever possible.

Issuers with 250 or more income record forms must use MTO to send a magnetic media formatted file electronically. Treasury accepts physical magnetic media for issuers with fewer than 250 income record forms. Business taxpayers, issuers, and service providers are encouraged to send state copies of W-2s and 1099s to Treasury electronically whenever possible.

Please refer to Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s for guidance on magnetic media.

View Treasury's Income Record Form Remittance Guide for W-2 and 1099 filing options.

Publication 1220 is an IRS document, updated annually, to provide guidance on the electronic remittance process for various federal returns, in magnetic media format, through the Filing Information Returns Electronically (FIRE) System. Taxpayers and service providers may use the layout or schema outlined in Publication 1220 to send magnetic media to Michigan.

Certain income record forms filed through the FIRE System will be automatically shared with Michigan through the CF/SF Program. The exception to this general rule is Form 1099-NEC. While Form 1099-NEC is included in the CF/SF Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury. Taxpayers and service providers wishing to take advantage of this program must apply with the IRS.

Magnetic media should be recorded on CD-R or IBM 3480 or 3490 compatible tape cartridges.

Please refer to Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s for guidance on magnetic media.

Yes, you must complete and mail Form 447 with physical magnetic media.

No, Form 447 is only needed when mailing physical magnetic media.

Treasury requires issuers of Form 1099-NEC to file the state copy with Treasury directly. 1099-NEC must be sent directly to Treasury even if filed electronically at the federal level (through FIRE), making it eligible to be shared through the Combined Federal/State Filing (CF/SF) Program.

Yes. Certain income record forms filed through the Internal Revenue Services' Filing Information Returns Electronically (FIRE) System will be automatically shared with Michigan through the Combined Federal/State Filing (CF/SF) Program. The exception to this general rule is Form 1099-NEC. While Form 1099-NEC is included in the CF/SF Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury.

There are several ways to send state copies of 1099-NEC directly to Treasury. Refer to Treasury's Income Record Forms Remittance Guide for W-2 and 1099 filing options.

Beginning 2020 tax year, nonemployee compensation must be reported on Form 1099-NEC. A state copy of this form must be filed directly with Treasury when applicable.

Certain income record forms filed through the Internal Revenue Services' Filing Information Returns Electronically (FIRE) System will be automatically shared with Michigan through the Combined Federal/State Filing (CF/SF) Program. See the current tax year's IRS Publication 1220 for more information. The exception to this general rule is Form 1099-NEC. While Form 1099-NEC is included in the CF/SF Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury.

There are several ways to send state copies of 1099-NEC and other income record forms directly to Treasury. Refer to Treasury's Income Record Form Remittance Guide for W-2 and 1099 filing options.

Certain income record forms filed through the Internal Revenue Services' Filing Information Returns Electronically (FIRE) System will be automatically shared with Michigan through the Combined Federal/State Filing (CF/SF) Program. The exception to this general rule is Form 1099-NEC. While Form 1099-NEC is included in the CF/SF Program beginning tax year 2021, Michigan requires the state copy be filed directly with Treasury.

There are several ways to send state copies of 1099-NEC directly to Treasury. Refer to Treasury's Income Record Form Remittance Guide for W-2 and 1099 filing options.

No. If you are mailing physical magnetic media, send Form 447. For all filing options and guidelines, refer to Treasury's Income Record Forms Remittance Guide.

After you set up your personal MTO user profile, you have access to MTO web services. Click Sales, Use, and Withholding (SUW) Taxes under the Tax Services section of the MTO Homepage.

To submit income record form information through MTO connect your personal MTO user profile to the Treasury-registered business tax account that issued the 1099 forms. Once connected, you can access the W-2 and 1099 upload page. Visit the MTO Help Center to access the Connect to a Business and Income Statement Upload tutorials in the Resources/Guides section.

View Treasury's Income Record Form Remittance Guide.

Visit the MTO Help Center for EFW2 and Income Statement Upload tutorials.

Review Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s for information about sending magnetic media to Treasury.

Visit the Business Tax eService page to ask account-specific or general questions.

Call Treasury's Business Tax Customer Contact Division at 517-636-6925.