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Income Records Form Remittance Guide

Overview

W-2s and 1099s are Internal Revenue Service (IRS) forms required to be filed by persons or businesses who pay compensation to persons or businesses. The IRS determines the type of federal form required and the State of Michigan follows these federal guidelines.

For purposes of this guide, "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".

The Michigan Department of Treasury (Treasury) requires issuers to file state copies of the following income record forms: 

  • W-2, when issued to a Michigan resident employee, to report 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, when required to report certain gambling winnings of, and withholding for, nonresidents of Michigan.
  • 1099s (specifically, 1099-R, 1099-MISC, and 1099-NEC), 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 form that indicates Michigan withholding (including Form 1099-K).

Most income record forms are due to Treasury on or before January 31. The exceptions to this general rule are paper filed Form 1099-MISC, which are due February 28 and electronically filed Form 1099-MISC, which are due March 31. 

Income Statement Filing Options in Michigan

FIRE/CFSF Program. Michigan participates with the federal Combined Federal/State Filing (CF/SF) Program. This means that the IRS shares certain income record form information with Michigan, automatically satisfying a taxpayer's filing requirement 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. The IRS issues Publication 1220 each year, providing guidance on this electronic remittance process-including accepted forms and formats.

Note: 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. See below for direct filing options

Michigan Treasury Online (MTO). All Michigan taxpayers and their service providers can use MTO to send income record forms. While electronic submission is available to all filers, those issuing 250 or more income record forms must use MTO to electronically send a magnetic media formatted file. Issuers with fewer than 250 income record forms may send electronic data through MTO in any file layout. Treasury can only accept income record form information in .PDF, .RAR, .TXT, or .ZIP file formats. The maximum file size is 10MB. Multiple files can be submitted if necessary.

MTO Option 1: Upload all W-2s and 1099s for a particular business.
After logging in to MTO using your personal user profile, access the Sales, Use, and Withholding (SUW) Tax Service. If you have not already, connect to the registered business tax account (or the accounts of multiple clients) who issued the income record forms. After creating this relationship, click the name of the business on the SUW Dashboard. Select Additional Services under SUW Actions and click Wage Statement Upload. Click Upload. Select the applicable tax year of the income record forms and click Select a W2 File to choose a file from your computer. Click Upload to send the file to Treasury. You will receive a confirmation number.

For additional support, visit the MTO Help Center to access the Connect to a Business and Income Statement Upload tutorials in the Resources/Guides section.  

MTO Option 2: Upload specifically formatted W-2 information.

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 called "Specifications for Filing Forms W-2 Electronically (EFW2)", which provides filing instructions and specifications on preparing data files in the EFW2 format. MTO's EFW2 Upload portal provides a way to send Treasury a copy of the federal file (with code "RS" for state record included - which is optional for federal reporting) to satisfy the Michigan W-2 reporting requirement.

After logging in to MTO using your personal user profile, access the EFW2 Upload portal under Guest Services. Review the file size and format requirements. Click Upload. Select the applicable tax year of the income records and click Select a W2 File to choose a file from your computer. Click Upload to send the file to Treasury. You will receive a confirmation number. 

For additional support, visit the MTO Help Center to access the EFW2 Upload tutorial in the Resources/Guides section.  

Magnetic Media. Magnetic media is a federal reporting schema developed to communicate W-2 and 1099 data without sending physical form copies. Tax-year specific formats are specified by the Internal Revenue Service's Publication 1220 or the Social Security Administration's Specifications for Filing Forms W-2 Electronically (EFW2).

Treasury accepts magnetic media in physical format from issuers with fewer than 250 income record forms. Issuers with 250 or more income record forms must use MTO to send a magnetic media formatted file electronically. 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.

Paper Form MailingTreasury accepts mailed state copies of W-2s and 1099s (no cover letter required) from issuers with fewer than 250 income record forms to: Michigan Department of Treasury
Lansing, MI 48930. Do not include the SUW annual return with this mailing.

MTO – Reminders

Issuers with 250 or more W-2s and 1099s:

  • Electronic submissions via MTO required.
  • Follow Publication 1220 or Specifications for Filing Forms W-2 Electronically (EFW2) formatting.
  • Ensure no missing or incomplete records.
  • Do not change PDF file format to text (TXT) file format; upload in the original file format unless you need to compress size to a smaller file (ZIP).
  • Upload multiple files per year if necessary.

Issuers with fewer than 250 W-2s and 1099s:

  • Electronic submissions via MTO optional and encouraged.
  • If participating in federal electronic remittance programs, utilize Publication 1220 or Specifications for Filing Forms W-2 Electronically (EFW2) formatted files for filing with Michigan.
  • You can scan physical copies of state income record forms, convert to PDF format, and upload electronically via MTO. ZIP multiple PDF files together and upload 1 file if possible.
  • Upload multiple files per year if necessary.

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