USA State Payroll Rates + Resources: State of Michigan: Filing State Income Taxes, W2s, and 1099s
The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Michigan.
State Income Tax Withholding
To determine the amount of state income tax withholding, employees should complete a State of Michigan Depart of Treasury Employee's Michigan Withholding Exemption Certificate (MI-W4). Every employee, on or before the date of commencement of employment, shall furnish his or her employer with a signed Employee Michigan Withholding Exemption Certificate (MI-W4) relating to personal and dependent exemptions and/or additional amount to be withheld each pay period.
Employers are required to keep copies of completed state MI-W4 forms for their employees in their files. The forms serve as verification that state income taxes are being withheld according to the employee’s instructions and needs to be available for inspection if the state requests it.
The Forms W-4 and MI-W4 generally are valid until the employee provides new ones. However, employees who claim exemption from withholding must renew the exemption annually by filing new Forms W-4 or MI-W4 by February 15 each year.
Employers must submit a copy of MI-W4 to the Treasury if an employee:
Claims ten or more exemptions, or
Claim exempt from withholding tax
Employers must also submit MI-W-4's for employees who change their withholding status to exempt.
Use the official MI-W4 only; do not send copies of the federal W-4s only to: New Hire Operations Center, P.O. Box 85010, Lansing, MI 48908-5010.
State Income Tax Withholding Reporting & Deposits
All taxpayers must file a return(s) and remit applicable payment(s) according to their filing frequency established by the Treasury.
|Frequency (determined by Treasury)||Due Date|
|Monthly||On or before the 20th day of the following month|
|Quarterly||On or before the 20th day of the month following the quarter|
|Annual (required for all businesses)||February 28th|
There are several return filing options: Michigan Treasury Online (MTO) (preferred), Treasury approved commercial or proprietary software, or eligible paper form.
W-2 and 1099 Forms
Michigan is now participating in the combined federal/state 1099 filing program. The IRS will share this information with Michigan. If there is no Michigan individual income tax withholding reported and the 1099s were filed using this program, the Michigan requirement for reporting non-employee compensation paid to Michigan residents has been satisfied.
There are multiple ways to file wage statements (including 1099-MISC and W-2s) with the Michigan Department of Treasury. Wage statements can be uploaded through Michigan Treasury Online (MTO) after filing the Sales, Use and Withholding Taxes Annual Return (Form 5081). Wage Statements can also be mailed with Form 5081.
Wage statements can be mailed under separate cover to Michigan Department of Treasury, Lansing, MI 48930.