Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
I have Michigan employees but my company is located in another state. Am I still required to withhold Michigan tax from the Michigan employees?
Yes, if the out-of-state company has created nexus (a physical presence) within Michigan the employer would be required to register with the Michigan Department of Treasury to withhold Michigan income tax.
Exception: If the employee working in Michigan is a resident of reciprocal state (i.e., Wisconsin, Indiana, Kentucky, Illinois, Ohio or Minnesota) do not withhold Michigan tax.