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

Treasury's Income Record Form Remittance Guide outlines required forms, due dates, and acceptable filing methods for state copies of W-2s and 1099s.

Income Record Form Overview 

 

What are income record forms?

"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".

 

Does Treasury still use the term "wage statements" to refer to W-2s and 1099s?

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.

 

Which W-2s must be filed with Michigan?

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

  • 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.
  • Any other W-2 type form that indicates Michigan withholding.

Who is required to send 1099s to Treasury?

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).

 

Why would there be withholding on a 1099?

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.

 

Does Michigan allow W-2 and 1099 submissions with truncated Social Security Numbers (SSNs)?

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

 

What is Form 1099-NEC and what changes did it cause?

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. 

 

When are state copies of W2s and 1099s due?

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.

 

I need a copy of a W-2 or 1099 filed with Treasury. How can I get it?

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.

 

I am the owner of a sole-member LLC. Do I need to issue myself a W-2 or 1099?

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.

Filing Income Record Forms


How can I file state copies of income statements (W-2 and 1099 forms)?

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.

 

Am I required to send income statements to Michigan electronically?

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.

 

Should I send W-2s and/or 1099s with the Annual Return for Sales, Use and Withholding (SUW) Taxes?

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

 

Should I send W-2s and/or 1099s with a copy of my already filed SUW Annual Return?

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.

 

If I accidently file income record forms more than once with Michigan, how do I correct the filing?

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

 

Does Michigan participate in the Combined Federal/State Filing (CF/SF) Program?

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.

 

What is Publication 1220 and how does it apply to filing income statements with Michigan?

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.

 

What is EFW2 and how does it apply to filing W-2s with Michigan?

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.

 

My W-2s and 1099s are not in Publication 1220 or EFW2 format. Should I mail paper copies?

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.

 

Can I upload an IRS file with all W-2s and 1099s issued or should I report only Michigan income record forms?

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

 

I filed 1099 data through Quickbooks' e-filing service. Does this guarantee Michigan will receive copies as well?

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.   

 

I mailed W-2s to the Social Security Administration (SSA). Do I need to file these income record forms with Michigan directly?

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

 

I submitted W-2s electronically through QuickBooks and received confirmation that the SSA has received our submission. Do I still have to send a copy to Treasury?

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.

 

Does the IRS share W-2 and 1099 data with Michigan if the forms were mailed to the IRS?

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.

 

Can I send photocopies of income record forms filed with the IRS?

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.

 

I uploaded income record forms through MTO. When referencing my confirmation number in the History table, I noticed the file name changed. Did I do something wrong?

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.

 

Am I required to file all income record forms using a single method, or can I choose multiple filing options?

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.

 

My business is not liable for business taxes in the State of Michigan. How do I file 1099 forms?

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

 

I am mailing income record forms for multiple companies. Can I put them all in the same envelope or does the state prefer them to be mailed separately?

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

 

How can I confirm Treasury received filed income record forms?

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.

 

Are there filing requirements apart from income record forms?

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


What is magnetic media filing and who is required to use it?

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.

 

Which income record forms can I file by 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.

 

I am required to file all income record forms in magnetic media format, or can I choose different filing formats?

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.

 

How do I send magnetic media to the State of Michigan?

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.

 

What is Publication 1220 and how does it apply to filing magnetic media with Michigan?

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.

 

I am sending magnetic media through the mail. Which recording devices are accepted?

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.

 

I am mailing magnetic media; do I need to complete and send Form 447?

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

 

I am sending magnetic media electronically; do I need to complete and send Form 447?

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

1099-NEC


Do I need to file 1099-NEC forms with Michigan?

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.

 

Do 1099-NEC forms that do not indicate Michigan withholding need to be filed with the state?

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.

 

Do I need to report nonemployee compensation on Form 1099-NEC or can I continue using Form 1099-MISC?

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.

 

I find conflicting information regarding 1099's filing with the State of Michigan. Does the IRS forward 1099 information or are issuers required to send a copy to Treasury?

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.

 

Every year I e-file 1099 forms federally. The software I use informed me that they won't be able to e-file the state 1099-NEC form. Why did this happen and how can I send this information to Treasury?

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.

 

Is it necessary to send the IRS Form 1096 with 1099-NECs to Michigan?

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.

 

I created an MTO profile, but I do not see where I can upload 1099-NEC forms. How can I send this information electronically?

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.  

Other


Where can I find more information regarding W-2s and 1099s?