Simple Cost Sharing Agreement Withholding Tax In Michigan
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Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin.
Locate Your Withholding Tax Account Number: This number is identical to your company's Federal Employer Identification Number (FEIN). Please note, in order for your FEIN to be valid, you must ensure you are registered with the MI Department of Treasury. For any questions, contact the agency at (517) 636-6925.
Determine the amount of tax withheld using a direct percentage computation or the withholding tables provided on Treasury's website at .michigan/withholding. The withholding rate is 4.25 percent of compensation after deducting the personal and dependency exemption allowance.
Employees may claim exemption from withholding only if they do not anticipate a Michigan income tax liability for the current year because their employment is less than full-time and the personal and dependency exemptions exceed their annual compensation.
Employers must comply with many different types of local payroll taxes. These taxes are based on where your employees work and/or live. Certain types of local taxes are only imposed on employers doing business in a locality.
Michigan employers are required to withhold and remit several state and federal taxes on behalf of their employees. These include Federal Income Tax, State Income Tax, FICA Tax, and Local Income Tax, if applicable.
You will need to withhold if you are an employer who meets any of the following: If you have a location in the city. If you are “doing business” in the city, even if you don't have a location in the city. If you have locations both in and out of the city.
Use the Michigan Treasury Online (MTO) to file and make sales, use, and withholding returns online. For questions about withholding tax payments, contact the Michigan Department of Treasury at 517-636-6925 or visit the Michigan Department of Treasury website.
Calculating Your Withholding Tax Marginal Tax Rates for 2024 10% $11,600 or less $23,200 or less 12% $11,601 to $47,150 $23,201 to $94,300 22% $47,151 to $100,525 $94,301 to $201,050 24% $100,526 to $191,950 $201,051 to $383,9004 more rows
In general, payers must withhold 4.25 percent on all distributions that are subject to Michigan income tax, unless the payer receives a withholding certificate from a retiree that directs otherwise.
