HB-5091, As Passed House, April 11, 2018

HB-5091, As Passed Senate, April 11, 2018

SUBSTITUTE FOR

HOUSE BILL NO. 5091

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending section 711 (MCL 206.711), as amended by 2017 PA 110.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 711. (1) Every person required by this part to deduct and

withhold taxes for a tax year on income other than distributive

share of income from a flow-through entity shall furnish to the

person who received the income a statement in duplicate on or

before January 31 of the succeeding year of the total income paid

during the tax year and the amount deducted or withheld. However,

if employment is terminated before the close of a calendar year by

a person that goes out of business or permanently ceases to exist,

then the statement required by this subsection shall be issued

within 30 days after the last compensation, winnings, or payoff of

a winning ticket is paid. A duplicate of a statement made pursuant

to this section and an annual reconciliation return, MI-W3, shall

be filed with the department by February 28 of the succeeding year

for tax years before the 2018 tax year and by January 31 of the

succeeding year for the 2018 tax year and each tax year after 2018

except that a person that goes out of business or permanently

ceases to exist shall file the statement and the annual

reconciliation return within 30 days after going out of business or

permanently ceasing to exist. For tax years that begin before July

1, 2016, a flow-through entity that was required to withhold taxes

on distributive shares of business income shall file an annual

reconciliation return with the department no later than the last

day of the second month following the end of the flow-through

entity's federal tax year. The department may require a flow-

through entity to file an annual business income information return

with the department on the due date, including extensions, of its

annual federal information return.

(2) Every person required by this part to deduct or withhold

taxes shall make a return or report in form and content and at

times as prescribed by the department. An employer that has more

than 250 employees shall file its annual return or report required

under this section in electronic form. An employer that has entered

into an agreement with a community college pursuant to chapter 13

of the community college act of 1966, 1966 PA 331, MCL 389.161 to

389.166, and is required to deduct or withhold taxes from

compensation and make payments to a community college pursuant to

the agreement for a portion of those taxes withheld shall, for as

long as the agreement remains in effect, delineate in the return or

report required under this subsection between the amount deducted

or withheld and paid to the state and that amount paid to a

community college. An employer that has entered into a written

agreement pursuant to the good jobs for Michigan program created

under section 90h of the Michigan strategic fund act, 1984 PA 270,

MCL 125.2090h, shall, for as long as the written agreement remains

in effect, delineate in the return or report required under this

subsection the portion of those taxes withheld and paid to the

state that are attributable to certified new jobs.

(3) Every person who receives income subject to withholding

under this part shall furnish to the person required by this part

to deduct and withhold taxes information required to make an

accurate withholding. A person who receives income subject to

withholding under this part shall file with the person required by

this part to deduct and withhold taxes revised information within

10 days after a decrease in the number of exemptions or a change in

status from a nonresident to a resident. The person who receives

income subject to withholding under this part may file revised

information when the number of exemptions increases or when a

change in status occurs from that of a resident of this state to a

nonresident of this state. Revised information shall not be given

retroactive effect for withholding purposes. A person required by

this part to deduct and withhold taxes shall rely on this

information for withholding purposes unless directed by the