Individual income tax: withholding requirements; mandatory withholding requirement by pension administrators; make optional. Amends sec. 703 of 1967 PA 281 (MCL 206.703).
What changed between versions
New withholding requirements added for casino licensees on nonresident winnings and race meeting/track licensees on nonresident payoff prices.
New requirement for eligible production companies to withhold tax on payments to professional services corporations or professional employer organizations for performing artists and crew members.
New reporting requirement for casino and race track licensees to report resident winnings to the department.
Modified withholding payment deadlines from quarterly dates to monthly deadlines, with special provisions for community college agreements.
New exemption certificate process allowing flow-through entity members to avoid withholding if they meet specific conditions and file required documentation.
New exemption for publicly traded partnerships with SEC-registered securities from withholding requirements.
New exemption for flow-through entity members who voluntarily elect to file Michigan business tax returns instead of withholding.
New exemptions for flow-through entities when withholding would violate federal housing assistance programs or state housing development authority requirements.
Bill effective date changed to January 1, 2026, with specific provisions applying to tax years beginning before July 1, 2016.
