Get 5081 Sales, Use And Withholding Taxes Annual Return. 5081 Sales, Use And Withholding Taxes Annual

Every employer in this state required under the Internal Revenue Code (IRC) to withhold federal income tax on compensation of an individual must also withhold Michigan income tax. In addition, payers of pension and retirement benefits subject to Michigan income tax must withhold on the taxable amount.

The personal exemption amount for 2023 is $5,400.

Use tax of 6% must be paid to the State of Michigan on the total price (including shipping and handling charges) of all taxable items brought into Michigan or purchases through the internet, by mail or by phone from out-of-state retailers that do not collect and remit sales or use tax from their customers.

Michigan provides an exemption from sales or use tax on tangible personal property used in tilling, planting, caring for or harvesting things of the soil, in the breeding, raising or caring of livestock poultry or horticultural products for further growth.

You must file a Michigan return if you file a federal return or your income exceeds your Michigan exemption allowance. A return must be filed even if you do not owe Michigan tax.

Taxpayers who withheld Michigan income tax on a 1099 form (1099- MISC, 1099-NEC, 1099-R, etc.) must report the income and the withholding on the Sales, Use, and Withholding Taxes Annual Return (Form 5081) and send a copy of the 1099 form directly to Treasury.

To file your sales tax return with the State of Michigan, you can use the Michigan Department of Treasury website or you can use the paper form, Form 5080.

Michigan's use tax rate is six percent. This tax will be remitted to the state on monthly, quarterly or annual returns as required by the Department.