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Accounting Setup for Startups
 

Accounting Setup for Startups

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Mike Zimmerman, CPA will guide you through the basics and also share information on accounting software that is easy to use for a new business. Your company’s books and financial statements ...

Mike Zimmerman, CPA will guide you through the basics and also share information on accounting software that is easy to use for a new business. Your company’s books and financial statements represent a score sheet which tells how you are progressing, as well as an early warning system which lets you know when and why the business may be going amiss. Financial statements and the underlying records will provide the basis for many decisions made by outsiders such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. The necessity for good, well-organized financial records cannot be over-emphasized. One of the greatest mistakes made by owners of small businesses is not keeping good financial records and making improper or poor business decisions based on inadequate information. An accounting or bookkeeping system is like any tool used in your business; it needs to be sophisticated enough to provide the information you need to run your business and simple enough for you to run it (or supervise the bookkeeper).

For Mike Zimmerman's Bio check out: http://incuba8.com/speaker-michael-zimmerman-principal-yeo-yeo-cpas-business-consultants/

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    Accounting Setup for Startups Accounting Setup for Startups Document Transcript

    • Starting a New Business Part III Financial Words in Action Prepared by www.yeoandyeo.com Alma | Ann Arbor | Bay City | Flint | Kalamazoo | Lansing | Marlette | Midland | Saginaw
    • TABLE OF CONTENTS Part 3 CHAPTER 1: ACCOUNTING AND BOOKKEEPING Chart of Accounts ........................................................................................................... 1 Cash or Accrual Accounting ........................................................................................... 2 Accounting Records and Record-Keeping ..................................................................... 3 A Word About Computers .............................................................................................. 3 Internal Control ............................................................................................................... 4 Illustrative Chart of Accounts.......................................................................................... 5 CHAPTER 2: PAYROLL TAXES Available Publications .................................................................................................... 7 Tax Deposit Requirements ............................................................................................. 7 Federal Unemployment Taxes ....................................................................................... 8 Michigan Unemployment Taxes ..................................................................................... 8 Supplemental Wages ..................................................................................................... 8 Fringe Benefits ............................................................................................................... 9 Other Tax Requirements .............................................................................................. 10 Tax Rates ..................................................................................................................... 11 CHAPTER 3: INCOME TAXES Income Tax Forms ....................................................................................................... 12 Estimated Tax Payments ............................................................................................. 13 Due Dates .................................................................................................................... 13 Extensions .................................................................................................................... 14 First Corporate Return.................................................................................................. 14 Tax Planning ................................................................................................................ 14 State Taxes .................................................................................................................. 15 Conclusion.................................................................................................................... 15 EXHIBITS OFFICE LOCATIONS ............................................................................................................. 16
    • CHAPTER 1 ACCOUNTING AND BOOKKEEPING Most operators of a new and growing business have a flair for the environment in which the business operates. They may be a great salesperson, an outstanding mechanic, carpenter, lawyer, or inventor. Unfortunately most people don’t like to keep the books. As an owner of a business, you must remember that your company’s books and financial statements represent a score sheet which tells how you are progressing, as well as an early warning system which lets you know when and why the business may be going amiss. Financial statements, and the underlying records, will provide the basis for many decisions made by outsiders such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. The necessity for good, well-organized financial records cannot be over-emphasized. One of the greatest mistakes made by owners of small businesses is not keeping good financial records and making improper or poor business decisions based on inadequate information. Quality financial information does not necessarily translate into complicated bookkeeping or accounting systems. Far too often owners of businesses become overwhelmed by their accounting system to the point where it is of no use to them. An accounting or bookkeeping system is like any tool used in your business, it needs to be sophisticated enough to provide the information you need to run your business and simple enough for you to run it (or supervise the bookkeeper). Questions you should ask in developing an accounting and financial reporting system are: 1. Who will be the users of the financial information? 2. What questions do I need answered to manage the business? 3. What questions should be answered for government or regulatory taxing authorities? As your business grows, you should work closely with Yeo & Yeo CPA’s to ensure that your accounting system is providing you with appropriate information. Chart of Accounts The basic road map into any accounting system is the chart of accounts. It is this chart which helps establish the information which will be captured by your accounting system, and what information will subsequently be readily retrievable by the system. This tool, like the rest of the accounting systems, needs to be dynamic and should grow as the size and needs of your business changes. 1
    • To help establish a good working chart of accounts, you need to answer some questions, in conjunction with your accountant, as to how your business will operate, and what is important to you. Some of these considerations might be: 1. Will your business have inventory to account for? If so, will it be purchased in final form or will there be production costs? 2. Are fixed assets a significant portion of your business? 3. Will you sell only one product or service or will there be several types of business? 4. Will you have accounts receivable from customers which you will need to track? 5. Are you going to sell in only one location or will you do business in several locations? 6. Are the products you sell subject to sales tax? 7. Do you need to track costs by department? 8. What type of government controls or regulatory reporting are you subject to? Each one of these questions can have several answers and will probably generate more questions. Each answer will have an impact on how the chart of accounts is structured. It may seem that developing a chart of accounts is not particularly high on your list of things to do as you start a new business; however, the amount of time and money which a well organized accounting system may save you can be significant as the need to generate information for various purposes increases. An example of a basic chart of accounts follows this section. Cash or Accrual Accounting One of the decisions to be made, as you start a business, is whether to keep your records on a cash or accrual basis of accounting. The cash basis of accounting has the advantage of simplicity and almost everyone understands it. Under the cash basis of accounting you record sales when you receive the money and account for expenses when you pay the bills. The increase in the money in “the cigar box” at the end of the month is how much you made. Unfortunately, as we all know, the business world is not always so easy. Sales are made to customers and you sometimes must extend credit. Your business will incur liabilities which are due even though you may not have received the invoice or have the cash available to pay them. Under the accrual basis of accounting, revenue is recognized when earned and expenses are recognized when incurred. Most users of financial statements such as bankers and investors are accustomed to accrual basis statements prepared under generally accepted accounting principles. Once you become familiar with them, they provide a much better measuring device for your business operations than cash basis statements. 2
    • Whether you use the cash or accrual basis, it is possible to keep books for income tax purposes on a different basis than for financial statements. It may be more advantageous (less tax) for you to do so. Your accountant can advise you on the advantages and feasibility of doing this in your particular circumstances. Accounting Records and Record-Keeping Another question which the owner of a business must answer is “Who will keep the books of the business?” Will you do it yourself, will the receptionist or a secretary double as a part-time bookkeeper, will you have a bookkeeper that comes in periodically, or will the volume of activity be such that a full-time bookkeeper will be required? Very often the owners of a business decide to keep the books themselves and underestimate the commitment they have made to other phases of the operation and the time required to maintain a good set of financial records and books of account. As a consequence, the record keeping is often low priority and must be caught up later. This approach, though rarely planned, can require a substantial expenditure of time and money. It is important for the owners of a business to maintain control and stay involved in the financial operations of the enterprise; this can be achieved by maintaining close control over the check signing function and scrutinizing certain records. Your company’s accountant can help develop a good program of record keeping duties for you, your employees and any outside bookkeepers you may engage. A Word About Computers The computer is probably the single most valuable invention for bookkeeping and accounting since the advent of double entry bookkeeping. If your business includes any of the following, then a computer would be a useful tool in your business: 1. Many repetitious or routine tasks, 2. Lots of paperwork; i.e., payroll checks, invoices, purchase orders, mailing labels, 3. Lots of general correspondence, or 4. Written reports, contracts, newsletters, catalogues or brochures. Your accountant knows both your business and computers so he or she can take much of the confusion out of the selection process by assisting you in the purchase and installation of your computer and software. There are a number of very good, easy to use accounting software systems which are commercially available, but none of them will solve the problems of inaccurate or poor quality financial records. All they will do is generate bad information faster. This is one of the reasons that the computer has also probably caused more headaches for the owners of modern businesses than any other single cause. If you want to use a computer based accounting package, 3
    • either in your own business, with a service bureau or through your accountant, it is imperative that you generate accurate information to be entered into the system. The real value of the computer becomes apparent once it is running smoothly in your business. Your accountant can then function in the capacity for which he/she was trained not as a “number cruncher”, but as your business advisor, consultant, and strategist. Both of you can focus not on producing reports for various regulatory agencies but on analyzing your business to make it more profitable. Yeo & Yeo is not only an accounting firm, we also have a Computer Consulting division. The consultants in this area can help you with computer problems as they arise, teach you about different programs and how to use them in our computer training classes held at our Saginaw office, along with a number of other computer services. Internal Control What is internal control? It is the system of checks and balances within a business enterprise which helps to ensure that the company’s assets are properly safeguarded and that the financial information produced by the company is accurate and reliable. When you’re operating as a “one person shop” or at least handling all of the company’s financial transactions, maintaining good internal accounting control is relatively straightforward. However, when your company grows to the size where you must delegate some of the functions, it becomes more difficult to ensure that all the transactions are being accounted for properly. No matter the size of your business, you should always be able to answer “yes” to the following questions: 1. When my company provides goods or services to our customers, am I sure that the sale is recorded and the revenue is recorded in accounts receivable or the cash is collected? 2. When cash is expended by my company, am I sure we received goods or services? The methods used to ensure that these two questions can be answered affirmatively will vary widely. The solution in your particular instance may be as simple as numbering the sales invoices and being sure ALL INVOICES ARE ACCOUNTED FOR or reviewing all invoices and timecards before signing company checks. These are fundamentals in a well run business. As the company grows, you will need to consider concepts such as segregation of authority as well as employee fidelity bonds or controlled access storerooms. These are essential stepping stones to maintaining good control in your business. No matter what the size of your enterprise, you should consider controlling your business and safeguarding hard earned assets as a priority from the outset. 4
    • Illustrative Chart of Accounts Current Assets: 1000 Cash 1120 Accounts Receivable 1125 Allowance for Uncollectibles 1130 Inventory 1140 Prepaid Rent 1150 Prepaid Expenses Fixed Assets: 1310 Equipment 1320 Furniture and Fixtures 1330 Automobile 1340 Leasehold Improvements 1350 Accumulated Depreciation Intangible Assets: 1410 Goodwill 1420 Organizational Costs 1430 Accumulated Amortization 1440 Deposits Current Liabilities: 2100 Notes Payable 2110 Accounts Payable 2120 Interest Payable 2130 Salaries Payable 2140 Income Tax Payable 2150 Sales Tax Payable 2160 Federal Withholding and FICA Tax Payable 2170 State Withholding Tax Payable 2180 Federal Unemployment Tax Payable 2190 State Unemployment Tax Payable 2200 Advances from Customers Long-Term Liabilities: 2410 Mortgage Payable 2420 Credit Line Payable 5
    • Stockholder’s Equity: 3510 Capital Stock 3650 Retained Earnings Revenue: 4000 Sales 4100 Returns and Allowances Cost of Goods Sold: 5100 Purchases 5110 Freight 5120 Direct Labor Expenses: 6010 Advertising 6020 Bank Charges 6030 Contract Labor 6040 Depreciation and Amortization 6050 Dues and Subscriptions 6060 Employee Benefits 6070 Insurance 6080 Interest Expense 6090 Janitorial 6100 Legal and Professional Fees 6110 Meals and Entertainment 6120 Office Expense 6130 Payroll 6140 Postage and Shipping 6150 Rent 6160 Repairs and Maintenance 6170 Supplies 6180 Taxes – Income 6190 Taxes – Payroll 6200 Taxes – Other 6210 Telephone 6220 Travel 6230 Utilities Other Revenue: 7010 Interest Income 7020 Other Income 6
    • CHAPTER 2 PAYROLL TAXES Irrespective of the form of business in which you operate, if you are going to have employees, then you will have to contend with payroll taxes. The brief summary which follows will give you some guidance in the rules and regulations of the various taxing authorities. Available Publications Circular E, Publication 15, Employer’s Tax Guide, covers the payroll tax reporting and deposit requirements and can be obtained through the local office of the Internal Revenue Service. You can obtain a Circular E in one of the following three ways: Visiting the IRS website www.irs.gov, Calling 1-800-TAX-FORM, or Visiting your local IRS office. Tax Deposit Requirements Federal withheld income and FICA taxes (employer and employee portion) now must adhere to new rules issued for 1993 and subsequent tax years. A lookback period of July 1 to June 30 has been established for ongoing businesses and a corresponding period will be used for subsequent years. New businesses will choose deposit rules based upon anticipated tax liability. 1. Monthly Depositor. An employer that reported employment taxes of $50,000 or less during the lookback period generally must make only monthly deposits for the entire calendar year. The deposit for a month must be made on or before the 15th day of the following month. 2. Semi-Weekly Wednesday/Friday Depositor. An employer that reported employment taxes of more than $50,000 during the lookback period is a semi- weekly depositor for the entire year. Such employers must make deposits on or before Wednesdays or Fridays depending on the timing of their payrolls. Specifically, employment taxes from payments to employees made on Wednesdays, Thursdays or Fridays must be deposited on or before the following Wednesday. Taxes from Saturday, Sunday, Monday or Tuesday payments to employees must be deposited by the following Friday. 3. Nonbanking Days. Semi-weekly depositors will always have at least three banking days to make a deposit. If any of the three weekdays following the close of a semi-weekly period is a bank holiday, the employer will have an additional banking day to make the deposit. For example, if Monday is a bank holiday, deposits from the prior week Wednesday through Friday period can be made by the following Thursday, rather than by the regular Wednesday 7
    • deposit day. In addition, Saturdays and Sundays are treated as nonbanking days. 4. One Day Depositor. If a monthly or semi-weekly depositor accumulates employment taxes of $100,000 or more during a deposit period (monthly or semi-weekly), it must deposit the taxes by the next banking day. This rule overrides the normal rules for determining deposit dates discussed above. A monthly depositor that must make a one day deposit under this rule immediately becomes a semi-weekly depositor for the rest of the calendar year and the following year. Federal Unemployment Taxes To determine your quarterly liability for FUTA, multiply by .011 that part of the first $7,000 of each employee’s annual wages that you paid during the quarter. If the resultant liability for all employees for the quarter is $500 or less, there is no requirement to deposit it currently, you merely add it to your liability for the following quarter. If your liability for any calendar quarter (plus any undeposited taxes for an earlier quarter) is more than $500, you are required to deposit the taxes with a Federal tax deposit coupon, at an authorized financial institution or Federal Reserve Bank by the end of the following month. If the tax reported on your annual Federal Unemployment Tax Return, Form 940, less deposits for the year: 1. Is more than $500, you must deposit all of the tax by January 31st, or 2. Is less than $500, you may pay the taxes when you file Form 940. Michigan Unemployment Taxes To determine your quarterly liability for the Unemployment Insurance Agency, multiply by your tax rate (usually 2.7% for startups) that part of the first $9,000 of each employee’s annual wages that you paid during the quarter. You are required to pay the taxes with a completed form UIA 1020 by the 25th of the month following the end of every quarter. You are also required to file form UIA 1017, listing the gross compensation paid to each employee for the quarter. Supplemental Wages If supplemental wages – such as bonuses, commissions, overtime pay – are included in the same payment with regular wages, tax to be withheld is determined as if the total of the supplemental and regular wages were a single payment for the regular payroll period. If supplemental wages are not paid with the same payment as the regular wages, the employer may: 8
    • 1. Withhold at a flat rate of 25% for Federal and 4.35% for Michigan, or 2. Combine the supplemental wage with the last regular wage, determine the tax on the total wage, and subtract the amounts already withheld on the regular wage payment. Fringe Benefits Gross income does not include fringe benefits that qualify for exclusion, as described in the categories listed below. Fringe benefits that qualify for the exclusion are exempt from income tax and Social Security tax withholding (FICA and payment of Federal Unemployment Tax (FUTA)). Conversely, benefits, which do not qualify, are subject to these taxes. An example of a common non- qualifying benefit subject to tax is the automobile allowance. No-additional-cost service. This is a service provided to an employee that is excludable if the service is offered for sale to the public in the ordinary course of the line of business of the employer in which the employee is working and the employer does not incur substantial additional cost. For example, employers who furnish airline travel or hotel rooms to employees working in these lines of businesses in such a way that the nonemployee customers are not displaced and they incur no substantial additional cost in providing those services to the employees, the cost is excludable from the employee’s gross income. Qualified employee discount. Any employee discount is an excludable qualified employee discount if: (1) in the case of property, it does not exceed the gross-profit percentage of the price at which the property is being offered to customers; (2) in the case of service, it does not exceed 20% of the price at which the service is being offered. Working condition fringe. Any employer-provided property or services are excludable benefits to the extent that they are deductible as ordinary and necessary business expense had the employee paid for them. Under certain conditions, the fair market value of a qualified automobile demonstration used by a full time auto salesperson is an excludable working condition fringe. De minimis fringe. Property or services not otherwise tax-free are excludable if their value is so small as to make accounting unreasonable or administratively impractical. An operation of any eating facility for employees is an excludable de minimis fringe if it is located on or near the employer’s business premises and the revenue derived normally equals or exceeds the direct operating costs of the facility. Qualified Moving Expenses Reimbursement. An employee may exclude from gross income an amount received from an employer for payment of qualified moving expenses. Transportation Fringe Benefits. Beginning in 1995, an employee may exclude from gross income certain maximum amounts received from an employer as reimbursements for transit passes, vanpooling expenses, and qualified parking expenses. 9
    • Other Tax Requirements Whenever a wage payment is made, the employer must provide the employee with a statement of the gross wages and specific deductions (if any). Use the Form W-4 submitted by the employee and the tax tables provided in the employer’s tax guides to determine the correct income tax to withhold. If the employee fails to submit a Form W-4, the employer must withhold at the rate applicable to a single person who has no withholding exemptions. An employer must also complete a Form I-9 on each employee and obtain the necessary citizenship or other employment eligibility status verification. When making a reimbursement or payment of moving expenses to or for an employee, the employer must complete and furnish the employee with a Form 4782 for each move. The employer must also furnish a Form W-2 to each employee showing remuneration and withheld taxes for each calendar year. Flat rate expense account allowance, disability insurance paid by the employer, and moving expense reimbursements are among the items to be included as other compensation on a Form W-2. Upon request, a Form W-2 must be furnished to a terminated employee within 30 days after the request or the final wage payment whichever is later. All other Forms W-2 should be given to the employees by January 31st, of the following year. The payroll tax requirements and the work related to compliance are quite cumbersome and complicated. Once a business employs more than a few people, we recommend that a qualified payroll service be used because it has generally been our experience that the cost of the service far outweighs the personnel and management time required to operate the payroll system in house. Yeo & Yeo has payroll specialists who can assist you in doing payroll for your business and preparing payroll taxes. 10
    • Tax Rates The following charts contain tax rates and the taxable wage basis for employers and employees. The limits and maximum contributions for 2009 given are per employee. Social Security Tax (FICA) Medicare Soc. Sec. Total Tax rate for employer 1.45% 6.2% 7.65% Tax rate for employee 1.45% 6.2% 7.65% On wages not to exceed No Limit $106,800.00 Maximum employer contribution No Limit $ 6,621.60 Maximum employee contribution No Limit $ 6,621.60 Federal Unemployment Tax (FUTA) Federal Unemployment Tax (employer 6.2% only): Gross Federal tax rate Less credit for Michigan UIA 5.1% (If timely payment is made) Net Federal tax rate 1.1% On Wages not to exceed $ 7,000.00 Maximum employer contribution (per $ 77.00 employee) 11
    • CHAPTER 3 INCOME TAXES Eventually you will have to deal with income taxes. The income tax laws are extensive and can be confusing for an individual starting a business. This chapter does not cover all the tax ramifications of a new business; however, it provides some guidance on complying with the laws. A qualified CPA or tax attorney should be consulted when you are dealing with income taxes. Income taxes have a direct result and a potentially significant impact on the cash flow of your business. Income Tax Forms Each type of legal entity is required to file a different type of income tax form. Sole Proprietorship. A sole proprietorship is considered to be a component of the individual’s personal tax situation. The tax form required is the Schedule-C which is included with the owner’s Form 1040. In addition, if the business has net taxable income, then a Schedule SE must be prepared to determine the amount of self-employment tax that is due. Michigan follows these same rules with the exception of the self-employment tax which is not levied under the Michigan tax laws. Partnership. A partnership is not a taxable entity at the federal level. It is, however, a taxable entity at the state level and is required to file Michigan Business Tax Form 4567. At the federal level, a partnership is treated as a conduit through which taxable income is passed to the individual partners for inclusion in their respective tax returns. The partnership is required to file Federal Form 1065. No tax is due with the Federal Form 1065. However, included with the forms is a schedule K-1 which lists the various items of income and credits to be included on the individual partner’s federal and state returns. Corporation. A corporation is considered a taxable entity and is required to file a Federal Form 1120 and Michigan Business Tax Form 4567. An example of a properly filled out Form 1120 and Michigan Business Tax Form 4567 is in the Exhibit Section. S Corporation. An S Corporation is a type of corporation that is specially treated under the tax laws. The government taxes this type of entity in the same manner as a partnership, with certain exceptions. The tax forms required are Federal Form 1120S and Michigan Business Tax Form 4567. Limited Liability Company. This is a form of business organization and if properly structured, is treated as a partnership for Federal income tax and Michigan Business Tax purposes. 12
    • Estimated Tax Payments In addition to the regular tax forms the law requires that if an estimate of the tax is not properly prepaid on a quarterly basis, a non-deductible underpayment penalty will be levied. Since an estimate is based on forecasting the future, and liable to human error, the tax laws provide two safe-harbors to avoid the penalty for underpayment. If your payments for each quarter equal the lesser of 110% of the prior year’s tax or 100% of the current year’s tax, then the penalty can be avoided. Estimates are filed using the following forms: Corporate Federal tax deposit Form 8109 deposited with your bank. Michigan Business Tax Form 4548 or deposited through a phone call to EFT system. Individual Federal Form 1040-ES. Michigan Form 1040-ES. For the State of Michigan, no penalties and interest will be charged if timely estimated payments equal at least 85% of your current year liability and the amount of each payment approximates the tax liability for the period. If prior year’s tax is $20,000 or less, the estimated tax may be based on the prior year’s amount in four equal payments, the sum of which equals the previous year’s tax liability. Due Dates The due dates of the various Federal and Michigan forms are: Corporate Federal Form 1120 is due the 15th day of the 3rd month after the end of the tax year. The Federal tax deposit Form 8109 is due the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Partnership Federal Form 1065 is due the 15th day of the 4th month after the end of the tax year (April 15th for most partnerships). S Corporation Federal Form 1120S is due the 15th day of the 3rd month after the end of the tax year. Federal tax deposit Form 8109 is due the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Sole Proprietorship Federal Form 1040 is due April 15th. Estimated tax payment Forms (Federal Form 1040-ES) are due quarterly on April 15th, June 15th, September 15th, and January 15th. Limited Liability Company May be classified as a partnership or corporation for Federal income tax purposes. Filing dates also vary by state. 13
    • All business types are required to file a Michigan Business Tax Return. The estimates for the Michigan Business Taxes are due the 15st of the 4th, 7th, 10th and 13th months of the business calendar year. Extensions The business owner may request an extension of time to file the tax returns. However, these extensions do not extend the time for paying the tax. First Corporate Return The first tax return a corporation files is very important. As part of that return elections are made which will dictate the way the corporation is taxed for many years to come. Some of the more significant elections that may need consideration are outlined below: 1. Election to capitalize and amortize costs incurred to organize the business. These can be legal, accounting or similar fees paid to commence operations. Such costs are not normally considered expenses of the corporation and are not deductible unless this election is made. 2. Election to accrue vacation pay earned but not taken by employees at the end of the tax year. Without this election, vacation pay is not deductible until the year it is taken. The elections discussed above are only a few of those that may need to be considered in an initial return. A qualified tax practitioner can help plan how best to utilize elections to take advantage of some of the following provisions of the Federal and Michigan tax laws including: A. Net-operating loss carryovers B. Research and development tax credits C. Business energy tax credits D. Michigan tax credits Tax Planning Proper tax planning is essential in order to make the most of the income tax laws. You will probably need to develop a relationship with a qualified professional who has experience with the taxation of your type of business. Tax planning is not a one-time shot right before the return is due. Tax planning is a year-round endeavor requiring communication on both sides – you and your CPA. Proper planning ensures that there are no surprises when the return is filed. 14
    • State Taxes If your company will be doing business in more than one state, it is essential that you familiarize yourself with the tax laws and filing requirements of those states. Each state has its own rules and regulations; if you are in non-compliance, you may be barred from doing business in that state. Conclusion Income tax laws are quite complicated. The amount you may save by attempting to tackle your own taxes, particularly as they relate to a business, can be greatly overshadowed by the expense you may incur if you make a mistake. This axiom takes on greater significance when the return is for a corporation – especially the first return. However, a far greater consideration than potential mistakes, is missing opportunities which may be available to you and your business. 15
    • www.yeoandyeo.com Alma Marlette 7810 N. Alger Road 3149 Main Street, Plaza #4 Alma, MI 48801 Marlette, MI 48453 (989) 463-6108 / 800-463-6108 (989) 635-7518 Fax (989) 463-8560 Fax (989) 635-3226 Ann Arbor Midland 455 E. Eisenhower Parkway, Suite 102 6018 Eastman Avenue Ann Arbor, MI 48108 Midland, MI 48640 (734) 769-1331 (989) 631-6060 / 800-701-3574 Fax (734) 996-3777 Fax (989) 631-4288 Bay City Saginaw 5982 West Side Saginaw Road 3023 Davenport Bay City, MI 48706 Saginaw, MI 48602 (989) 460-0760 / 866-707-9924 (989) 793-9830 or / 800-968-0010 Fax (989) 460-0626 Fax (989) 797-0186 Flint Yeo & Yeo Computer Consulting, LLC 4468 Oak Bridge Drive 3023 Davenport Flint, MI 48532 Saginaw, MI 48602 (810) 732-3000 / 800-899-4742 (989) 797-4075 / 800-607-1446 Fax (810) 732-6118 Fax (989) 797-4081 Kalamazoo Affiliated Medical Billing, LLC 710 E. Milham 3037 Davenport Kalamazoo, MI 49002 Saginaw, MI 48602 (269) 329-7007 / 800-375-3968 (989) 797-1400 or / 866-493-9830 Fax (269) 329-0626 Fax (989) 797-4077 Lansing 6639 Centurion Drive, Suite 170 Lansing, MI 48917 (517) 323-9500 Fax (517) 323-8360 16
    • Reset Form Michigan Department of Treasury 518 (Rev. 11-07) Type or print in blue or black ink. Registration for Michigan Taxes Check the box that best describes the reason for this application. Started a New Business Acquired/Transferred All/Part of a Business Reinstated an Existing Account(s) Added a New Location(s) 1. Federal Employer Identification Number, if known Hired Employee / Hired Michigan Resident Flow-thru Entity Withholding Incorporated / Purchased an Existing Business Other (explain) 2. Company Name or Owner's Full Name (include, if applicable, Corp, Inc, PC, LC, LLC, LLP, etc.). Required. 3. Business Name, Assumed Name or DBA (as registered with the county) 4. Address for all legal contacts (street and number - no PO boxes) Business Telephone Legal Address City State ZIP Code (Required) 5. Address, if different from Box 4, where all tax forms will be sent, unless otherwise instructed If this address is for an accountant or other representative, attach Form 151, Mailing Power of Attorney. Address City State ZIP Code 6. Address of the actual Michigan location of the business, if different from above (street and number--no PO boxes). See instructions. Physical Address City State ZIP Code 7. Enter the Business Ownership Type code from Page 4 (Required) 7. If your business is a limited partnership, you must name all general partners beginning on line 27. Check this box if you are an Employee Leasing Company (Professional Employer Organization (PEO)). Attach a list of your clients. 8. If you are a Michigan entity and line 7 is 34, 40, 41 or 42, enter your Michigan Department of Labor and Economic Growth (DLEG) Corporate ID Number 8. Check this box if you have applied for and not yet received your ID number. Date of Incorporation _______________________ State of Incorporation_______________________ 9. Enter Business Code (SIC) that best describes your business from the list in this booklet 9. 10. Define your business activity 11. What products, if any, do you sell (sold to final consumer)? Check the tax(es) below for which Date that liability will begin Estimated monthly payment for each tax you are registering. At least one for each box checked at left. Required if box at left is checked. box (12-15) must be checked. Month Day Year 12. Sales Tax 12a. 12b. Up to $65 Up to $300 Over $300 13. Use Tax 13a. 13b. Up to $65 Up to $300 Over $300 14. Income Tax Withholding (See line 22.) 14a. 14b. Up to $65 Up to $300 Over $300 Michigan Business Tax is required only if annual gross 15. Annual Gross Receipts receipts in Michigan exceed $350,000 with the exception over $350,000 (MBT) 15a. of insurance companies and financial institutions. Check the box if these other taxes also apply: 16. Unemployment Insurance Tax. Attach UIA Schedule A and UIA Schedule B. Corporations, LLCs, LLPs: Enclose a copy of your Articles of Incorporation or Organization. You must complete all items on this form accurately and completely. Failure to do so may subject you to the penalties provided under the Michigan Employment Security (MES) Act. 17. Motor Fuel/IFTA Tax. Complete line 25. Treasury will review your registration and send any necessary tax application forms. 18. Tobacco Tax. Complete line 26. Treasury will review your registration and send any necessary tax application forms. 19. Enter the number of business locations you will operate in Michigan (Required) 19. If more than 1, attach a list of names and addresses. Continued on reverse side.
    • 518, Page 2 20. Enter the month, numerically, that you close your tax books (for example, enter 08 for August) 20. 21. Seasonal Only: (Your business is not open continuously for the entire year) a. Enter the month, numerically, this seasonal business opens 21a. b. Enter the month, numerically, this seasonal business closes 21b. Note: If you are registering to sell at only one or two events in Michigan per year, do not submit this registration form. Instead, file a Concessionaire's Sales Tax Return and Payment (Form 2271). This form can be obtained on Treasury's Web site at www.michigan.gov/taxes, or by calling 1-517-636-4660. 22. Check this box if you use a payroll service that produces your payroll checks and sends income tax withholding payments to the State and Federal Governments. Attach a Payroll Service Provider Combined Power of Attorney Authorization and Corporate Officer Liability (COL) Certificate for Business (Form 3683). This form can be obtained on Treasury's Web site at www.michigan.gov/taxes, or by calling 1-517-636-4660. Enter the name of your payroll service provider: 23. If you are incorporating an existing business, or if you purchased an existing business, list previous business names and addresses, if known. Previous Business Name and Address Previous Business Name and Address 24. If you purchased an existing business, what assets did you acquire? Check all that apply. Land Building Furniture and Fixtures Equipment Inventory Accounts Payable Goodwill None 25. Motor Fuel/IFTA Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/taxes) Yes No a. Will you operate a terminal or refinery? 25a. b. Do you own a diesel-powered vehicle used for transport across Michigan's borders with three or more axles or two axles and a gross vehicle weight over 26,000 lbs? 25b. c. Will you transport fuel across Michigan's borders? 25c. 26. Tobacco Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/taxes) a. Will you sell tobacco products to someone who will offer them for sale? 26a. b. Will you operate a tobacco products vending machine? 26b. (1) If yes, do you supply tobacco products for the machine? 26b1. (2) If you do not supply the tobacco products, name the supplier Complete all the information for each owner or partner. For limited partnership you must list all general partners. For limited liability companies you must list all members. For corporations you must list all officers, but do not include shareholders who are not officers. Attach a separate list if necessary. I certify that the information provided on this form is true, correct and complete to the best of my knowledge and belief. 27. Name (Last, First, Middle, Jr/Sr/III) Title Date of Birth Phone Number Driver License / MI Identification No. Social Security Number Signature 28. Name (Last, First, Middle, Jr/Sr/III) Title Date of Birth Phone Number Driver License / MI Identification No. Social Security Number Signature 29. Name (Last, First, Middle, Jr/Sr/III) Title Date of Birth Phone Number Driver License / MI Identification No. Social Security Number Signature 30. Name (Last, First, Middle, Jr/Sr/III) Title Date of Birth Phone Number Driver License / MI Identification No. Social Security Number Signature Questions regarding this form should be directed to MAIL TO: Michigan Department of Treasury FAX TO: 517-636-4520 the Department at 517-636-4660. Submit this form six P.O. Box 30778 weeks before you intend to start your business. Lansing, MI 48909-8278
    • Michigan Unemployment Insurance Agency 518 Schedule A (Rev. 8/05) UIA Schedule A - Liability Questionnaire Issued under authority of the Michigan Employment Security Act of 1936, as amended, MCL 421.1 et seq. Filing is mandatory for all employers. You must complete all items on this form accurately and completely. Failure to do so may subject you to the penalties provided under the MES Act. UIA Account Number, if already assigned Federal Employer Identification No. (required) An employing unit becomes liable to pay Michigan unemployment taxes when the employing unit meets any of the following criteria: Pays $1,000 or more in gross wages for covered employment in a calendar year. Employs one or more employees in 20 different weeks within a calendar year. Acquires all or part of an existing Michigan business. Pays at least $1,000 in cash, not including room and board, for domestic service within a calendar quarter. Pays at least $20,000 in cash, not including room and board, for agricultural service within a calendar quarter, OR employs at least 10 agricultural workers in each of 20 different weeks in the current or preceding calendar year. Elects coverage under the terms of the Michigan Employment Security (MES) Act. Is subject to federal unemployment tax. When any one of the above criteria is met, you must submit Form 518, Registration for Michigan Taxes, and UIA Schedule A - Liability Questionnaire and UIA Schedule B - Successorship Questionnaire. You must also begin quarterly filing of Form UIA 1020, Employer's Quarterly Tax Report, Form UIA 1020-R, Reimbursing Employer's Quarterly Payroll Report and Form UIA 1017, Wage Detail Report. Unemployment taxes are due and payable beginning with the first calendar quarter in which you had payroll. Due dates for tax and wage reports are April 25, July 25, October 25 and January 25. Providing inaccurate or incomplete information in this Registration, or UIA Schedules A or B, will be evidence of intentional misrepresentation and may subject you to the civil and/or criminal penalties provided in Sections 54 and 54b of the Michigan Employment Security (MES) Act. Month Day Year On what date did/will you first employ anyone in Michigan? Complete only one of the seven items below that best describes your business. 1. EMPLOYERS OTHER THAN DOMESTIC OR AGRICULTURAL Month Day Year A. If you have had a gross payroll of $1,000 or more within a calendar year, enter the date it was reached or will be reached. B. If you have had 20 or more calendar weeks in which one or more persons Month Day Year performed services for you within a calendar year, enter the date the 20th week was reached or will be reached. The weeks do not have to be consecutive nor the persons the same. 2. AGRICULTURAL EMPLOYERS A. If you have had a total cash payroll of $20,000 or more for agricultural Month Day Year services performed within a calendar quarter in either the current or preceding calendar year, not including room and board, enter the date the $20,000 was reached or will be reached. B. If you have had at least 10 agricultural workers in each of 20 different Month Day Year weeks in the current or preceding calendar year, enter the date the 20th week was reached or will be reached. The weeks do not have to be consecutive nor the persons the same. 3. DOMESTIC/HOUSEHOLD EMPLOYERS A. If you have had a cash payroll of $1,000 or more for domestic services Month Day Year within a calendar quarter in either the current or preceding calendar year, not including room and board, enter the date the $1,000 was reached or will be reached. 4. NONPROFIT EMPLOYERS Nonprofit organizations finance their unemployment liability by either (1) paying unemployment taxes on the taxable wages of their employees (contributing) or (2) making a specific prior election to reimburse the UIA for any unemployment benefits paid to their former employees (reimbursing). A nonprofit organization that does not elect to be reimbursing will be, by default, contributing. To elect reimbursing status, see paragraphs 4A-4D. A. Nonprofit employers electing reimbursing status must provide the UIA with a copy of the documentation from the Internal Revenue Service (IRS) granting 501(c)(3) status. Check this box if you elect to be a reimbursing employer. Attach a copy of your IRS 501(c)(3) documentation. Failure to check this box will result in the establishment of your liability as a contributing employer. Continued on page 2
    • 518 Schedule A, Page 2 4. NONPROFIT EMPLOYERS (continued) B. If you are a nonprofit employer electing reimbursing status, enter $ the amount (or estimate) of your gross annual payroll C. Bonding Requirements. Section 13a of the Michigan Employment Security (MES) Act requires that nonprofit employers electing reimbursing status on or after December 21, 1989, and that have, or expect to have, a gross payroll of more than $100,000 during any calendar year must notify the UIA of that fact immediately and must provide a surety bond, irrevocable letter of credit, or other banking device approved by the UIA, in an amount to be determined by the UIA to secure the employer's obligations under the MES Act. If you exceed $100,000 in gross payroll in a later year, you are obligated to notify the UIA, and provide the bond at that time. D. If your organization is funded more than 50 percent by a grant, list the source and duration of the grant. Source Start Date End Date 5. GOVERNMENTAL AGENCIES, INDIAN TRIBES AND TRIBAL UNITS Governmental entities generally reimburse unemployment insurance benefits paid to former employees on a dollar-for-dollar basis unless they elect to make quarterly "contribution" payments. A. If you are a governmental agency, or Indian tribe or tribal unit, identify the type (i.e., city, township, commission, authority, tribe, etc.) Month Day B. Enter your fiscal year beginning date Under the MES Act, a governmental agency or Indian tribe finances its unemployment liability by (1) reimbursing the UIA for any unemployment benefits paid to their former employees (reimbursing) or (2) electing to pay unemployment taxes on the taxable wages of its employees (contributing). C. Check this box if you elect to be a contributing employer. Failure to check this box will result in the establishment of your liability as a reimbursing employer. Indian tribes and tribal units are subject to the same bonding requirements as nonprofit employers (see Line 4C, above). 6. FEDERAL UNEMPLOYMENT TAX ACT (FUTA) SUBJECTIVITY. Select this option ONLY if you are NOT liable for UIA taxes under any of the other employer types (1-5 above). State If you are already subject to FUTA, enter the state, other than Michigan, where you became liable Note: "Subject to FUTA" refers to filing Form 940 with the IRS. If you are required to file Form 940 (FUTA) with the IRS in other states, you are required to file and pay state unemployment taxes in Michigan. 7. ELECTIVE COVERAGE. For employers who would not otherwise be liable for unemployment taxes, such as churches. Check this box if you wish to elect coverage under the MES Act. Approval is subject to UIA review; some qualifiers apply. Your election, if granted, will apply to all your employees. Give your reason for electing coverage in the space provided below. If you are an individual owner or partnership electing to cover family members, specify their relationship to the owner or partners. You may not elect coverage for your parents or spouse, nor for your child under the age of 18. Individual owners and partners cannot elect coverage for themselves. You may not elect coverage for domestic employment below the statutory requirements stated above. Election of coverage remains in effect for a minimum of two calendar years. Print Name of Owner/Officer Signature of Owner/Officer Title Telephone Number Date Print Name of Owner/Officer Signature of Owner/Officer Title Telephone Number Date Attach this schedule to Form 518, Registration for Michigan Taxes and mail it to the Michigan Department of Treasury.
    • Michigan Unemployment Insurance Agency 518 Schedule B (Rev. 11-07) UIA Schedule B - Successorship Questionnaire Issued under authority of the Michigan Employment Security Act of 1936, as amended, MCL 421.1 et seq. Filing is mandatory for employers. You must complete all items on this form accurately and completely. Failure to do so may subject you to the penalties provided under the Michigan Employment Security (MES) Act. Attach additional sheets if necessary. Successorship Reporting Requirement. If you acquired any part of the Michigan assets, trade or business of another employer, as defined in Part 3 of this form, by purchase, rental, lease, inheritance, merger, foreclosure, bankruptcy, gift or any other form of transfer, you must provide the following information. If you made multiple acquisitions, you must file a separate UIA Schedule B for each acquisition (photocopies of this form are acceptable). If you made no acquisitions, you are still required to complete this schedule. If subsequent to completing this registration form, you transfer the assets (by sale or transfer), organization (payroll/employees), trade (customers/accounts), or business (products/services), in whole or in part, to a new or previously existing business in Michigan, it is mandatory that you notify this Agency immediately by completing an additional Schedule B. UIA Account Number Federal Employer Identification No. (if already assigned) (required) PART I: QUESTIONS ABOUT PRIOR OR CURRENT BUSINESS FORMATIONS, ACQUISITIONS OR MERGERS For each of the following five business formation, acquisition or merger types, the employer must indicate the pertinent business name, address and UIA Account Number in the space provided. 1. In the past 6 years, you formed, acquired or merged with a business by any means. If not applicable, check box Business Name and Address UIA Account Number a. If you formed a new business, what did you acquire from the previously existing business? (check all that apply) Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill Employees Trade Customer Accounts None b. If you purchased, acquired or merged with an existing business by any means (including lease), what assets did you acquire? (check all that apply) Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill Employees Trade Customer Accounts None c. What was the business activity of the previous business? 2. At the current time, you are forming, or acquiring, a business by any means. If not applicable, check box Business Name and Address UIA Account Number a. If you formed a new business, what did you acquire from a previously existing business? (check all that apply) Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill Employees Trade Customer Accounts None b. If you are purchasing or acquiring an existing business by any means (including by lease), what assets are you acquiring? (check all that apply) Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill Employees Trade Customer Accounts None c. Will any owner or owners of the previous business continue to operate or manage the business being registered by this form? Yes No If yes, provide name, title and business address below. d. What was the business activity of the previous business? e. What will be the business activity, if any, of the previous business after the new business being registered is formed? f. What will be the business activity of the new business being registered by this form?
    • 518 Schedule B, Page 2 PART I: QUESTIONS ABOUT PRIOR OR CURRENT BUSINESS FORMATIONS, ACQUISITIONS OR MERGERS (continued) 3. At the current time, you are incorporating an existing business entity. If not applicable, check box Business Name and Address UIA Account Number a. What was the business activity of the business entity you are incorporating? b. What will be the business activity of the new business being registered by this form? 4. At the current time, you are merging, by any means, with one or more business entities. If not applicable, check box Business Name and Address UIA Account Number a. If you are purchasing or acquiring an existing business by merger, what are you acquiring? (check all that apply) Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill Employees Trade Customer Accounts None b. If you are forming a new business, what are you acquiring from a previously existing business? (check all that apply) Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill Employees Trade Customer Accounts None c. Will any owner or owners of the merging business continue to operate or manage the business being registered by this form? Yes No If yes, provide name, title and business address below. d. What was the business activity of the merging business? e. What will be the business activity of the continuing business being registered by this form? 5. You are intending to form a business at a future time, by any means. If not applicable, check box Yes No If yes, please explain:
    • 518 Schedule B, Page 3 PART II: FORMER OWNER INFORMATION Former Owner's Name Former Owner's UIA Account Number or FEIN, if known. Corporate Name or DBA Area Code & Telephone Number Current Street Address (not a P.O. Box) City, State, ZIP PART III: ACQUISITION INFORMATION What Percent? Date Acquired 1. Did you acquire all, part, or none of the assets of any former business? All Part % None 2. Did you acquire all, part, or none of the organization (employees/payroll/personnel) of any former business? What Percent? Date Acquired a. If all or part, indicate the percent and date acquired. All Part % None b. Did you acquire all or part of the employees/payroll/personnel of any former business by leasing any of those employee/payroll/personnel? Yes No (If yes, provide a copy of your lease agreement) What Percent? Date Acquired 3. Did you acquire all, part, or none of the trade (customers/accounts/clients) of any former business? All Part % None What Percent? Date Acquired 4. Did you acquire all, part, or none of the former owner's Michigan business (products/services) of any former All Part % None business? Month Day Year 5. Was the Michigan business described in 1-4 above being operated at the time of acquisition? If no, enter the date Yes No it ceased operation. 6. Are you conducting/operating the Michigan business you Yes No acquired? 7. Is your Michigan business substantially owned or controlled in any way by the same interests that owned or controlled the organization, business or assets of a Yes No former business? 8. Did you hold any secured interest in any of the Michigan assets acquired? Yes No If yes, enter balance owed $ 9. Enter the reasonable value of the Michigan organization, trade, business or assets acquired? $ Providing inaccurate or incomplete information in this Registration, or UIA Schedules A or B, will be evidence of intentional misrepresentation and may subject you to the civil and/or criminal penalties in Sections 54 and 54b of the Michigan Employment Securities (MES) Act. Print Name of Owner/Officer Signature of Owner/Officer/Authorized Agent Title Telephone Number Date Print Name of Owner/Officer Signature of Owner/Officer/Authorized Agent Title Telephone Number Date Attach this schedule to Form 518, Registration for Michigan Taxes and mail it to the Michigan Department of Treasury.
    • Michigan Department of Treasury and Unemployment Insurance Agency (UIA) 151 (Rev. 8-05) Power of Attorney Issued under authority of the Revenue Act and the Michigan Employment Security (MES) Act. Complete this form if you wish to appoint someone to represent you to the State of Michigan on tax, benefit or debt matters, or if you wish to revoke or change your current Power of Attorney representation. Read the instructions on page 2 before completing this form. PART 1: TAXPAYER INFORMATION Taxpayer Name and Address (include spouse's name if joint return) If a business, enter DBA, trade or assumed name. Telephone Number Fax Number FEIN or Treasury Account No. UIA Account No. Taxpayer SSN Spouse SSN E-mail Address PART 2: REPRESENTATIVE INFORMATION AND AUTHORIZATION DATES Your authorized representative may be an organization, firm, or individual. If your representative is not an individual, designate a contact person. Submit a separate form for each representative. Representative Name and Address Contact Name (if applicable) E-mail Address Telephone Number Fax Number Beginning Authorization Date (mm/dd/yyyy) Ending Authorization Date (mm/dd/yyyy) * PART 3: TYPE OF AUTHORIZATION GENERAL AUTHORIZATION Authorizes my representative to: (1) inspect or receive confidential information, (2) represent me and make oral or written Treasury UIA** presentations of fact and/or argument, (3) sign returns, (4) enter into agreements, and (5) receive mail from Treasury or UIA (includes forms, billings, and notices). This authorization applies to all tax/non-tax matters and for all years or periods. Section A - Treasury Section B - UIA** LIMITED AUTHORIZATION All Only as All Only as Select the type of authorization by checking the appropriate boxes in Tax/Nontax Specified Tax/Nontax Specified Matters Below Matters Below Section A and Section B. 1. Inspect or receive confidential information 2. Represent me and make oral or written presentation of fact or argument 3. Sign returns 4. Enter into agreements 5. Receive mail from Treasury or UIA (includes forms, billings and notices) Tax Type (Income, Unemployment, Sales, Student Loan, etc.) Form Type (MI-1040, UIA 1020, 1020-R, 1017, etc.) or Assessment No. Year(s) or Period(s) PART 4: CHANGE IN POWER OF ATTORNEY Treasury UIA** CHANGE IN POWER OF ATTORNEY REPRESENTATION: This form replaces all earlier Powers of Attorney, except those attached, on file for the same tax/non-tax matters and years or periods covered by this Power of Attorney. REVOKE PREVIOUS AUTHORIZATION: I revoke all Powers of Attorney submitted and will represent myself in all tax matters. PART 5: TAXPAYER'S SIGNATURE If signed by a corporate officer, partner or fiduciary on behalf of the taxpayer, I certify that I have the authority to execute this Power of Attorney. Signature Name or Title Printed or Typed Date Spouse's Signature Name or Title Printed or Typed Date * If no Ending Authorization Date is provided, the above-named representative will be authorized to represent you until you notify the Michigan Department of Treasury or Unemployment Insurance Agency (UIA) in writing that this Power of Attorney is revoked. ** Unemployment Insurance Agency is abbreviated throughout this form as UIA.
    • 950109 Form 941 for 2009: Employer’s QUARTERLY Federal Tax Return Department of the Treasury — Internal Revenue Service (Rev. April 2009) OMB No. 1545-0029 (EIN) — Employer identification number Report for this Quarter of 2009 (Check one.) Name (not your trade name) 1: January, February, March Trade name (if any) 2: April, May, June 3: July, August, September Address Number Street Suite or room number 4: October, November, December City State ZIP code Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1: Answer these questions for this quarter. 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), Dec. 12 (Quarter 4) 1 2 Wages, tips, and other compensation 2 . 3 Income tax withheld from wages, tips, and other compensation 3 . 4 If no wages, tips, and other compensation are subject to social security or Medicare tax Check and go to line 6. 5 Taxable social security and Medicare wages and tips: Column 1 Column 2 5a Taxable social security wages . .124 = . 5b Taxable social security tips . .124 = . 5c Taxable Medicare wages & tips . .029 = . 5d Total social security and Medicare taxes (Column 2, lines 5a + 5b + 5c = line 5d) 5d . 6 Total taxes before adjustments (lines 3 + 5d = line 6) 6 . 7 CURRENT QUARTER’S ADJUSTMENTS, for example, a fractions of cents adjustment. See the instructions. 7a Current quarter’s fractions of cents . 7b Current quarter’s sick pay . 7c Current quarter’s adjustments for tips and group-term life insurance . 7d TOTAL ADJUSTMENTS. Combine all amounts on lines 7a through 7c 7d . 8 Total taxes after adjustments. Combine lines 6 and 7d 8 . 9 Advance earned income credit (EIC) payments made to employees 9 . 10 Total taxes after adjustment for advance EIC (line 8 – line 9 = line 10) 10 . 11 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayment applied from Form 941-X or Form 944-X . 12a COBRA premium assistance payments (see instructions) . 12b Number of individuals provided COBRA premium assistance reported on line 12a 13 Add lines 11 and 12a 13 . 14 Balance due. If line 10 is more than line 13, write the difference here 14 . 15 For information on how to pay, see the instructions. Overpayment. If line 13 is more than line 10, write the difference here . Check one Apply to next return. Send a refund. You MUST complete both pages of Form 941 and SIGN it. Next For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 17001Z Form 941 (Rev. 4-2009)
    • 950209 Name (not your trade name) Employer identification number (EIN) Part 2: Tell us about your deposit schedule and tax liability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see Pub. 15 (Circular E), section 11. Write the state abbreviation for the state where you made your deposits OR write “MU” if you made your 16 deposits in multiple states. 17 Check one: Line 10 is less than $2,500. Go to Part 3. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month. Then go to Part 3. Tax liability: Month 1 . Month 2 . Month 3 . Total liability for quarter . Total must equal line 10. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. 18 If your business has closed or you stopped paying wages Check here, and enter the final date you paid wages / / . 19 If you are a seasonal employer and you do not have to file a return for every quarter of the year Check here. Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. ( ) – Yes. Designee’s name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS. No. Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your Sign your name here name here Print your title here Date / / Best daytime phone ( ) – Paid preparer’s use only Check if you are self-employed Preparer’s Preparer’s name SSN/PTIN Preparer’s signature Date / / Firm’s name (or yours EIN if self-employed) Address Phone ( ) – City State ZIP code Page 2 Form 941 (Rev. 4-2009)
    • 850108 Form 940 for 2008: Employer’s Annual Federal Unemployment (FUTA) Tax Return Department of the Treasury — Internal Revenue Service OMB No. 1545-0028 (EIN) — Employer identification number Type of Return (Check all that apply.) Name (not your trade name) a. Amended Trade name (if any) b. Successor employer c. No payments to employees Address in 2008 Number Street Suite or room number d. Final: Business closed or stopped paying wages City State ZIP code Read the separate instructions before you fill out this form. Please type or print within the boxes. Part 1: Tell us about your return. If any line does NOT apply, leave it blank. 1 If you were required to pay your state unemployment tax in ... 1a One state only, write the state abbreviation 1a - OR - 1b More than one state (You are a multi-state employer) 1b Check here. Fill out Schedule A. Skip line 2 for 2008 and go to line 3. 2 If you paid wages in a state that is subject to CREDIT REDUCTION 2 Check here. Fill out Schedule A (Form 940), Part 2. Part 2: Determine your FUTA tax before adjustments for 2008. If any line does NOT apply, leave it blank. 3 Total payments to all employees 3 . 4 Payments exempt from FUTA tax 4 . Check all that apply: 4a Fringe benefits 4c Retirement/Pension 4e Other 4b Group-term life insurance 4d Dependent care 5 Total of payments made to each employee in excess of $7,000 5 . 6 Subtotal (line 4 + line 5 = line 6) 6 . 7 Total taxable FUTA wages (line 3 – line 6 = line 7) 7 . 8 FUTA tax before adjustments (line 7 .008 = line 8) 8 . Part 3: Determine your adjustments. If any line does NOT apply, leave it blank. 9 If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax, multiply line 7 by .054 (line 7 .054 = line 9). Then go to line 12 9 . 10 If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax, OR you paid ANY state unemployment tax late (after the due date for filing Form 940), fill out the worksheet in the instructions. Enter the amount from line 7 of the worksheet onto line 10 10 . 11 Skip line 11 for 2008 and go to line 12. If credit reduction applies, enter the amount from line 3 of Schedule A (Form 940) 11 . Part 4: Determine your FUTA tax and balance due or overpayment for 2008. If any line does NOT apply, leave it blank. 12 Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12) 12 . 13 FUTA tax deposited for the year, including any payment applied from a prior year 13 . 14 Balance due (If line 12 is more than line 13, enter the difference on line 14.) ● If line 14 is more than $500, you must deposit your tax. ● If line 14 is $500 or less, you may pay with this return. For more information on how to pay, see the separate instructions 14 . 15 Overpayment (If line 13 is more than line 12, enter the difference on line 15 and check a box below.) 15 . Check one: Apply to next return. You MUST fill out both pages of this form and SIGN it. Send a refund. Next For Privacy Act and Paperwork Reduction Act Notice, see the back of Form 940-V, Payment Voucher. Cat. No. 11234O Form 940 (2008)
    • 850208 Name (not your trade name) Employer identification number (EIN) Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6. 16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank. 16a 1st quarter (January 1 – March 31) 16a . 16b 2nd quarter (April 1 – June 30) 16b . 16c 3rd quarter (July 1 – September 30) 16c . 16d 4th quarter (October 1 – December 31) 16d . 17 Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) 17 . Total must equal line 12. Part 6: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. Yes. Designee’s name and phone number ( ) – Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS No. Part 7: Sign here. You MUST fill out both pages of this form and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that no part of any payment made to a state unemployment fund claimed as a credit was, or is to be, deducted from the payments made to employees. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. # Print your Sign your name here name here Print your title here Date / / Best daytime phone ( ) – Paid preparer’s use only Check if you are self-employed Preparer’s Preparer’s name SSN/PTIN Preparer’s signature Date / / Firm’s name (or yours if self-employed) EIN Address Phone ( ) – City State ZIP code Page 2 Form 940 (2008)
    • UIA 1020-R (Rev. 2-07) Reset Form State of Michigan Department of Labor & Economic Growth UNEMPLOYMENT INSURANCE AGENCY • Authorized by MCL 421.1, et seq. Tax Office – Suite 11-500 3024 W. Grand Boulevard – Detroit, Michigan 48202 Phone: (313) 456-2180 FAX: (313) 456-2130 www.michigan.gov/uia REIMBURSING EMPLOYER’S QUARTERLY PAYROLL REPORT Employer Name & Address Mail To: Unemployment Insurance Agency Tax Office PO Box 33598 Detroit, MI 48232-5598 DO NOT MAKE ADDRESS CORRECTIONS ON THIS FORM. If the pre-printed address is not correct, please call (800) 638-3994 (in Michigan) or (313) 456-2180 to obtain Form UIA 1025, Employer Request for Address/Name Change. INSTRUCTIONS: This report is due on the 25th of the month following the end of the calendar quarter. See reverse side for detailed instructions. To i ns ure p ro p e r p ro c e s s i ng o f thi s re p o rt, typ e /p ri nt c ha ra c te rs 0 1 2 3 4 5 6 7 8 9 in i nk w i thi n the b o xe s a s s ho w n. ...... ...... ...... ...... ...... ...... ...... ....... ....... ....... ....... ....... ....... ....... ....... 2. Federal Emp. 1. UIA Account Number ...... ...... ...... ...... ...... ...... ...... I.D. Number - 3. Quarter Ending Date / / 4. Gross Wages $ , , , . 5. Provide the number of all full-time and part-time 1st Month workers who worked during, or received pay for the pay period, which includes the 12th of the month 2nd Month 3rd Month YOUR CERTIFICATION: I declare that I have examined this report, and to the best of my knowledge and belief, it is true, correct and complete. Signature: Date: Title: Telephone ( ) - MAKE A COPY FOR YOUR RECORDS For UIA Use Only. Do Not Write Below Line. • *1020r0702*
    • UIA 1017 (Rev. 1-06) Wage Detail Report Authorized by MCL 421.1, et seq. STATE OF MICHIGAN, DEPARTMENT OF LABOR & ECONOMIC GROWTH PICA ELITE UNEMPLOYMENT INSURANCE AGENCY PICA ELITE See reverse side for detailed instructions and penalty provisions. < > BY USING “ALIGNMENT BOXES” TYPED & LINE PRINTED DATA WILL FALL WITHIN ALL FIELDS Report Quarter Ending: Return by: Mail original form to: UIA Wage Record Unit (Do not mail a copy) P.O. Box 9052 Detroit, MI 48202-9052 1-313-456-2760 (TTY customers use 1-866-366-0004) FEIN Multi-Unit UIA Account Number Please Type Or Print All Information DELETE EMPLOYEE NAME GROSS WAGES STATUS (X) SOCIAL SECURITY NUMBER LAST NAME FIRST NAME PAID THIS QUARTER $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ I declare that I have examined this report and to the best of my knowledge and belief, it is correct and complete. TOTAL $ Signature: Date: (Last page only) Title: Telephone: PAGE OF
    • Complete all worksheets that apply. However, you dividends, consider making estimated tax Form W-4 (2009) may claim fewer (or zero) allowances. For regular wages, withholding must be based on allowances payments using Form 1040-ES, Estimated Tax for Individuals. Otherwise, you may owe Purpose. Complete Form W-4 so that your you claimed and may not be a flat amount or additional tax. If you have pension or annuity employer can withhold the correct federal income percentage of wages. income, see Pub. 919 to find out if you should tax from your pay. Consider completing a new adjust your withholding on Form W-4 or W-4P. Head of household. Generally, you may claim Form W-4 each year and when your personal or head of household filing status on your tax Two earners or multiple jobs. If you have a financial situation changes. return only if you are unmarried and pay more working spouse or more than one job, figure Exemption from withholding. If you are than 50% of the costs of keeping up a home the total number of allowances you are entitled exempt, complete only lines 1, 2, 3, 4, and 7 for yourself and your dependent(s) or other to claim on all jobs using worksheets from only and sign the form to validate it. Your exemption qualifying individuals. See Pub. 501, one Form W-4. Your withholding usually will for 2009 expires February 16, 2010. See Exemptions, Standard Deduction, and Filing be most accurate when all allowances are Pub. 505, Tax Withholding and Estimated Tax. Information, for information. claimed on the Form W-4 for the highest Note. You cannot claim exemption from Tax credits. You can take projected tax paying job and zero allowances are claimed on withholding if (a) your income exceeds $950 credits into account in figuring your allowable the others. See Pub. 919 for details. and includes more than $300 of unearned number of withholding allowances. Credits for Nonresident alien. If you are a nonresident income (for example, interest and dividends) child or dependent care expenses and the alien, see the Instructions for Form 8233 and (b) another person can claim you as a child tax credit may be claimed using the before completing this Form W-4. dependent on their tax return. Personal Allowances Worksheet below. See Pub. 919, How Do I Adjust My Tax Check your withholding. After your Form W-4 Basic instructions. If you are not exempt, takes effect, use Pub. 919 to see how the complete the Personal Allowances Worksheet Withholding, for information on converting your other credits into withholding allowances. amount you are having withheld compares to below. The worksheets on page 2 further adjust your projected total tax for 2009. See Pub. your withholding allowances based on itemized Nonwage income. If you have a large amount 919, especially if your earnings exceed deductions, certain credits, adjustments to of nonwage income, such as interest or $130,000 (Single) or $180,000 (Married). income, or two-earner/multiple job situations. Personal Allowances Worksheet (Keep for your records.) A Enter “1” for yourself if no one else can claim you as a dependent A ● You are single and have only one job; or B Enter “1” if: ● You are married, have only one job, and your spouse does not work; or B ● Your wages from a second job or your spouse’s wages (or the total of both) are $1,500 or less. C Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or more than one job. (Entering “-0-” may help you avoid having too little tax withheld.) C D Enter number of dependents (other than your spouse or yourself) you will claim on your tax return D E Enter “1” if you will file as head of household on your tax return (see conditions under Head of household above) E F Enter “1” if you have at least $1,800 of child or dependent care expenses for which you plan to claim a credit F (Note. Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.) G Child Tax Credit (including additional child tax credit). See Pub. 972, Child Tax Credit, for more information. ● If your total income will be less than $61,000 ($90,000 if married), enter “2” for each eligible child; then less “1” if you have three or more eligible children. ● If your total income will be between $61,000 and $84,000 ($90,000 and $119,000 if married), enter “1” for each eligible child plus “1” additional if you have six or more eligible children. G H Add lines A through G and enter total here. (Note. This may be different from the number of exemptions you claim on your tax return.) H For accuracy, ● If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions complete all and Adjustments Worksheet on page 2. worksheets ● If you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs exceed that apply. $40,000 ($25,000 if married), see the Two-Earners/Multiple Jobs Worksheet on page 2 to avoid having too little tax withheld. ● If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below. Cut here and give Form W-4 to your employer. Keep the top part for your records. Form W-4 Employee’s Withholding Allowance Certificate OMB No. 1545-0074 Department of the Treasury Internal Revenue Service Whether you are entitled to claim a certain number of allowances or exemption from withholding is subject to review by the IRS. Your employer may be required to send a copy of this form to the IRS. 2009 1 Type or print your first name and middle initial. Last name 2 Your social security number Home address (number and street or rural route) 3 Single Married Married, but withhold at higher Single rate. Note. If married, but legally separated, or spouse is a nonresident alien, check the “Single” box. City or town, state, and ZIP code 4 If your last name differs from that shown on your social security card, check here. You must call 1-800-772-1213 for a replacement card. 5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2) 5 6 Additional amount, if any, you want withheld from each paycheck 6 $ 7 I claim exemption from withholding for 2009, and I certify that I meet both of the following conditions for exemption. ● Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and ● This year I expect a refund of all federal income tax withheld because I expect to have no tax liability. If you meet both conditions, write “Exempt” here 7 Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief, it is true, correct, and complete. Employee’s signature (Form is not valid unless you sign it.) Date 8 Employer’s name and address (Employer: Complete lines 8 and 10 only if sending to the IRS.) 9 Office code (optional) 10 Employer identification number (EIN) For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 10220Q Form W-4 (2009)
    • Form W-4 (2009) Page 2 Deductions and Adjustments Worksheet Note. Use this worksheet only if you plan to itemize deductions, claim certain credits, adjustments to income, or an additional standard deduction. 1 Enter an estimate of your 2009 itemized deductions. These include qualifying home mortgage interest, charitable contributions, state and local taxes, medical expenses in excess of 7.5% of your income, and miscellaneous deductions. (For 2009, you may have to reduce your itemized deductions if your income is over $166,800 ($83,400 if married filing separately). See Worksheet 2 in Pub. 919 for details.) 1 $ $11,400 if married filing jointly or qualifying widow(er) 2 Enter: $ 8,350 if head of household 2 $ $ 5,700 if single or married filing separately 3 Subtract line 2 from line 1. If zero or less, enter “-0-” 3 $ 4 Enter an estimate of your 2009 adjustments to income and any additional standard deduction. (Pub. 919) 4 $ 5 Add lines 3 and 4 and enter the total. (Include any amount for credits from Worksheet 8 in Pub. 919.) 5 $ 6 Enter an estimate of your 2009 nonwage income (such as dividends or interest) 6 $ 7 Subtract line 6 from line 5. If zero or less, enter “-0-” 7 $ 8 Divide the amount on line 7 by $3,500 and enter the result here. Drop any fraction 8 9 Enter the number from the Personal Allowances Worksheet, line H, page 1 9 10 Add lines 8 and 9 and enter the total here. If you plan to use the Two-Earners/Multiple Jobs Worksheet, also enter this total on line 1 below. Otherwise, stop here and enter this total on Form W-4, line 5, page 1 10 Two-Earners/Multiple Jobs Worksheet (See Two earners or multiple jobs on page 1.) Note. Use this worksheet only if the instructions under line H on page 1 direct you here. 1 Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet) 1 2 Find the number in Table 1 below that applies to the LOWEST paying job and enter it here. However, if you are married filing jointly and wages from the highest paying job are $50,000 or less, do not enter more than “3.” 2 3 If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter “-0-”) and on Form W-4, line 5, page 1. Do not use the rest of this worksheet 3 Note. If line 1 is less than line 2, enter “-0-” on Form W-4, line 5, page 1. Complete lines 4–9 below to calculate the additional withholding amount necessary to avoid a year-end tax bill. 4 Enter the number from line 2 of this worksheet 4 5 Enter the number from line 1 of this worksheet 5 6 Subtract line 5 from line 4 6 7 Find the amount in Table 2 below that applies to the HIGHEST paying job and enter it here 7 $ 8 Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed 8 $ 9 Divide line 8 by the number of pay periods remaining in 2009. For example, divide by 26 if you are paid every two weeks and you complete this form in December 2008. Enter the result here and on Form W-4, line 6, page 1. This is the additional amount to be withheld from each paycheck 9 $ Table 1 Table 2 Married Filing Jointly All Others Married Filing Jointly All Others If wages from LOWEST Enter on If wages from LOWEST Enter on If wages from HIGHEST Enter on If wages from HIGHEST Enter on paying job are— line 2 above paying job are— line 2 above paying job are— line 7 above paying job are— line 7 above $0 - $4,500 0 $0 - $6,000 0 $0 - $65,000 $550 $0 - $35,000 $550 4,501 - 9,000 1 6,001 - 12,000 1 65,001 - 120,000 910 35,001 - 90,000 910 9,001 - 18,000 2 12,001 - 19,000 2 120,001 - 185,000 1,020 90,001 - 165,000 1,020 18,001 - 22,000 3 19,001 - 26,000 3 185,001 - 330,000 1,200 165,001 - 370,000 1,200 22,001 - 26,000 4 26,001 - 35,000 4 330,001 and over 1,280 370,001 and over 1,280 26,001 - 32,000 5 35,001 - 50,000 5 32,001 - 38,000 6 50,001 - 65,000 6 38,001 - 46,000 7 65,001 - 80,000 7 46,001 - 55,000 8 80,001 - 90,000 8 55,001 - 60,000 9 90,001 - 120,000 9 60,001 - 65,000 10 120,001 and over 10 65,001 - 75,000 11 75,001 - 95,000 12 95,001 - 105,000 13 105,001 - 120,000 14 120,001 and over 15 Privacy Act and Paperwork Reduction Act Notice. We ask for the information on You are not required to provide the information requested on a form that is this form to carry out the Internal Revenue laws of the United States. The Internal subject to the Paperwork Reduction Act unless the form displays a valid OMB Revenue Code requires this information under sections 3402(f)(2)(A) and 6109 and control number. Books or records relating to a form or its instructions must be their regulations. Failure to provide a properly completed form will result in your retained as long as their contents may become material in the administration of being treated as a single person who claims no withholding allowances; providing any Internal Revenue law. Generally, tax returns and return information are fraudulent information may also subject you to penalties. Routine uses of this confidential, as required by Code section 6103. information include giving it to the Department of Justice for civil and criminal The average time and expenses required to complete and file this form will vary litigation, to cities, states, the District of Columbia, and U.S. commonwealths and depending on individual circumstances. For estimated averages, see the possessions for use in administering their tax laws, and using it in the National instructions for your income tax return. Directory of New Hires. We may also disclose this information to other countries If you have suggestions for making this form simpler, we would be happy to hear under a tax treaty, to federal and state agencies to enforce federal nontax criminal from you. See the instructions for your income tax return. laws, or to federal law enforcement and intelligence agencies to combat terrorism.
    • Reset Form MI-W4 EMPLOYEE'S MICHIGAN WITHHOLDING EXEMPTION CERTIFICATE (Rev. 8-08) STATE OF MICHIGAN - DEPARTMENT OF TREASURY This certificate is for Michigan income tax withholding purposes only. You must file a revised form within 10 days if your exemptions decrease or your residency status changes from nonresident to resident. Read instructions below before completing this form. 1. Social Security Number 2. Date of Birth Issued under P.A. 281 of 1967. 3. Type or Print Your First Name, Middle Initial and Last Name 4. Driver License Number Home Address (No., Street, P.O. Box or Rural Route) 5. Are you a new employee? Yes If Yes, enter date of hire . . . . City or Town State ZIP Code No 6. Enter the number of personal and dependent exemptions you are claiming 6. 7. Additional amount you want deducted from each pay (if employer agrees) 7. $ .00 8. I claim exemption from withholding because (does not apply to nonresident members of flow-through entities - see instructions): a. A Michigan income tax liability is not expected this year. b. Wages are exempt from withholding. Explain: _______________________________________________________ c. Permanent home (domicile) is located in the following Renaissance Zone: _________________________________ EMPLOYEE: Under penalty of perjury, I certify that the number of withholding exemptions claimed on this certificate does not If you fail or refuse to file this form, your exceed the number to which I am entitled. If claiming exemption from withholding, I certify that I anticipate that I employer must withhold Michigan income tax will not incur a Michigan income tax liability for this year. from your wages without allowance for any 9. Employee's Signature Date exemptions. Keep a copy of this form for your records. INSTRUCTIONS TO EMPLOYER: Employer: Complete lines 10 and 11 before sending to the Michigan Department of Treasury. Employers must report all new hires to the State 10. Employer's Name, Address, Phone No. and Name of Contact Person of Michigan. Keep a copy of this certificate with your records. If the employee claims 10 or more personal and dependent exemptions or claims a status exempting the employee from withholding, you must file their original MI-W4 11. Federal Employer Identification Number form with the Michigan Department of Treasury. Mail to: New Hire Operations Center, P.O. Box 85010; Lansing, MI 48908-5010. INSTRUCTIONS TO EMPLOYEE You must submit a Michigan withholding exemption If you hold more than one job, you may not claim the same certificate (form MI-W4) to your employer on or before the date exemptions with more than one employer. If you claim the that employment begins. If you fail or refuse to submit this same exemptions at more than one job, your tax will be under certificate, your employer must withhold tax from your withheld. compensation without allowance for any exemptions. Your employer is required to notify the Michigan Department of Line 7: You may designate additional withholding if you expect Treasury if you have claimed 10 or more personal and to owe more than the amount withheld. dependent exemptions or claimed a status which exempts you from withholding. Line 8: You may claim exemption from Michigan income tax You MUST file a new MI-W4 within 10 days if your residency withholding ONLY if you do not anticipate a Michigan income status changes or if your exemptions decrease because: a) tax liability for the current year because all of the following your spouse, for whom you have been claiming an exemption, exist: a) your employment is less than full time, b) your is divorced or legally separated from you or claims his/her own personal and dependent exemption allowance exceeds your exemption(s) on a separate certificate, or b) a dependent must annual compensation, c) you claimed exemption from federal be dropped for federal purposes. withholding, d) you did not incur a Michigan income tax liability for the previous year. You may also claim exemption if your Line 5: If you check "Yes," enter your date of hire permanent home (domicile) is located in a Renaissance Zone. (mo/day/year). Members of flow-through entities may not claim exemption Line 6: Personal and dependent exemptions. The total number from nonresident flow-through withholding. For more of exemptions you claim on the MI-W4 may not exceed the information on Renaissance Zones call the Michigan Tele-Help number of exemptions you are entitled to claim when you file System, 1-800-827-4000. Full-time students that do not satisfy your Michigan individual income tax return. all of the above requirements cannot claim exempt status. If you are married and you and your spouse are both Web Site employed, you both may not claim the same exemptions with Visit the Treasury Web site at: each of your employers. www.michigan.gov/businesstax
    • DO NOT STAPLE a Control number For Official Use Only 33333 OMB No. 1545-0008 b 941 Military 943 944 1 Wages, tips, other compensation 2 Federal income tax withheld Kind of Hshld. Medicare Third-party CT-1 emp. govt. emp. sick pay 3 Social security wages 4 Social security tax withheld Payer c Total number of Forms W-2 d Establishment number 5 Medicare wages and tips 6 Medicare tax withheld e Employer identification number (EIN) 7 Social security tips 8 Allocated tips f Employer’s name 9 Advance EIC payments 10 Dependent care benefits 11 Nonqualified plans 12 Deferred compensation 13 For third-party sick pay use only 14 Income tax withheld by payer of third-party sick pay g Employer’s address and ZIP code h Other EIN used this year 15 State Employer’s state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax Contact person Telephone number For Official Use Only ( ) Email address Fax number ( ) Under penalties of perjury, I declare that I have examined this return and accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete. Signature Title Date Form W-3 Transmittal of Wage and Tax Statements 2009 Department of the Treasury Internal Revenue Service Send this entire page with the entire Copy A page of Form(s) W-2 to the Social Security Administration. Do not send any payment (cash, checks, money orders, etc.) with Forms W-2 and W-3. Reminder ● Upload a file for employers who use payroll/tax software to print Form(s) W-2, if the vendor software creates a file that can be Separate instructions. See the 2009 Instructions for Forms W-2 uploaded to SSA. and W-3 for information on completing this form. For more information, go to www.socialsecurity.gov/employer and select “First Time Filers” or “Returning Filers” under “BEFORE YOU Purpose of Form FILE.” A Form W-3 Transmittal is completed only when paper Copy A of Form(s) W-2, Wage and Tax Statement, are being filed. Do not file When To File Form W-3 alone. Do not file Form W-3 for Form(s) W-2 that were Mail any paper Forms W-2 under cover of this Form W-3 submitted electronically to the Social Security Administration (see Transmittal by March 1, 2010. Electronic fill-in forms or uploads are below). All paper forms must comply with IRS standards and be filed through SSA’s Business Services Online (BSO) Internet site machine readable. Photocopies and hand-printed forms are not and will be on time if submitted by March 31, 2010. acceptable. Use a Form W-3 even if only one paper Form W-2 is being filed. Make sure both the Form W-3 and Form(s) W-2 show Where To File Paper Forms the correct tax year and Employer Identification Number (EIN). Make Send this entire page with the entire Copy A page of Form(s) W-2 a copy of this form and keep it with Copy D (For Employer) of to: Form(s) W-2 for your records. Social Security Administration Electronic Filing Data Operations Center The Social Security Administration strongly suggests employers Wilkes-Barre, PA 18769-0001 report Form W-3 and W-2 Copy A electronically instead of on Note. If you use “Certified Mail” to file, change the ZIP code to paper. SSA provides two e-file options: “18769-0002.” If you use an IRS-approved private delivery service, add “ATTN: W-2 Process, 1150 E. Mountain Dr.” to the address and change ● Free online, fill-in Forms W-2 for employers who file 20 or fewer the ZIP code to “18702-7997.” See Publication 15 (Circular E), Form(s) W-2. Employer’s Tax Guide, for a list of IRS-approved private delivery services. For Privacy Act and Paperwork Reduction Act Notice, see the back of Copy D of Form W-2. Cat. No. 10159Y
    • a Employee’s social security number 22222 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld c Employer’s name, address, and ZIP code 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips d Control number 9 Advance EIC payment 10 Dependent care benefits e Employee’s first name and initial Last name Suff. 11 Nonqualified plans 12a C o d e 13 Statutory Retirement Third-party 12b employee plan sick pay C o d e 14 Other 12c C o d e 12d C o d e f Employee’s address and ZIP code 15 State Employer’s state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name Wage and Tax W-2 2009 Department of the Treasury—Internal Revenue Service Form Statement Copy 1—For State, City, or Local Tax Department
    • U.S. Department of Justice OMB No. 1115-0136 Immigration and Naturalization Service Employment Eligibility Verification Please read instructions carefully before completing this form. The instructions must be available during completion of this form. ANTI-DISCRIMINATION NOTICE: It is illegal to discriminate against work eligible individuals. Employers CANNOT specify which document(s) they will accept from an employee. The refusal to hire an individual because of a future expiration date may also constitute illegal discrimination. Section 1. Employee Information and Verification. To be completed and signed by employee at the time employment begins. Print Name: Last First Middle Initial Maiden Name Address (Street Name and Number) Apt. # Date of Birth (month/day/year) City State Zip Code Social Security # I am aware that federal law provides for I attest, under penalty of perjury, that I am (check one of the following): A citizen or national of the United States imprisonment and/or fines for false statements or A Lawful Permanent Resident (Alien # A use of false documents in connection with the An alien authorized to work until / / completion of this form. (Alien # or Admission #) Employee's Signature Date (month/day/year) Preparer and/or Translator Certification. (To be completed and signed if Section 1 is prepared by a person other than the employee.) I attest, under penalty of perjury, that I have assisted in the completion of this form and that to the best of my knowledge the information is true and correct. Preparer's/Translator's Signature Print Name Address (Street Name and Number, City, State, Zip Code) Date (month/day/year) Section 2. Employer Review and Verification. To be completed and signed by employer. Examine one document from List A OR examine one document from List B and one from List C, as listed on the reverse of this form, and record the title, number and expiration date, if any, of the document(s) List A OR List B AND List C Document title: Issuing authority: Document #: Expiration Date (if any): / / / / / / Document #: Expiration Date (if any): / / CERTIFICATION - I attest, under penalty of perjury, that I have examined the document(s) presented by the above-named employee, that the above-listed document(s) appear to be genuine and to relate to the employee named, that the employee began employment on (month/day/year) / / and that to the best of my knowledge the employee is eligible to work in the United States. (State employment agencies may omit the date the employee began employment.) Signature of Employer or Authorized Representative Print Name Title Business or Organization Name Address (Street Name and Number, City, State, Zip Code) Date (month/day/year) Section 3. Updating and Reverification. To be completed and signed by employer. A. New Name (if applicable) B. Date of rehire (month/day/year) (if applicable) C. If employee's previous grant of work authorization has expired, provide the information below for the document that establishes current employment eligibility. Document Title: Document #: Expiration Date (if any): / / l attest, under penalty of perjury, that to the best of my knowledge, this employee is eligible to work in the United States, and if the employee presented document(s), the document(s) l have examined appear to be genuine and to relate to the individual. Signature of Employer or Authorized Representative Date (month/day/year) Form I-9 (Rev. 11-21-91)N Page 2
    • VOID CORRECTED PAYER’S name, street address, city, state, ZIP code, and telephone no. 1 Rents OMB No. 1545-0115 $ Miscellaneous 2 Royalties 2009 Income $ Form 1099-MISC 3 Other income 4 Federal income tax withheld $ $ Copy 1 PAYER’S federal identification RECIPIENT’S identification 5 Fishing boat proceeds 6 Medical and health care payments For State Tax number number Department $ $ RECIPIENT’S name 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest $ $ Street address (including apt. no.) 9 Payer made direct sales of 10 Crop insurance proceeds $5,000 or more of consumer products to a buyer (recipient) for resale $ City, state, and ZIP code 11 12 Account number (see instructions) 13 Excess golden parachute 14 Gross proceeds paid to payments an attorney $ $ 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer’s state no. 18 State income $ $ $ $ $ $ Form 1099-MISC Department of the Treasury - Internal Revenue Service
    • Do Not Staple 6969 OMB No. 1545-0108 Form 1096 Annual Summary and Transmittal of Department of the Treasury Internal Revenue Service U.S. Information Returns 2008 FILER’S name Street address (including room or suite number) City, state, and ZIP code Name of person to contact Telephone number For Official Use Only ( ) Email address Fax number ( ) 1 Employer identification number 2 Social security number 3 Total number of 4 Federal income tax withheld 5 Total amount reported with this Form 1096 forms $ $ 6 Enter an “X” in only one box below to indicate the type of form being filed. 7 If this is your final return, enter an “X” here W-2G 1098 1098-C 1098-E 1098-T 1099-A 1099-B 1099-C 1099-CAP 1099-DIV 1099-G 1099-H 1099-INT 1099-LTC 32 81 78 84 83 80 79 85 73 91 86 71 92 93 1099-MISC 1099-OID 1099-PATR 1099-Q 1099-R 1099-S 1099-SA 5498 5498-ESA 5498-SA 95 96 97 31 98 75 94 28 72 27 Return this entire page to the Internal Revenue Service. Photocopies are not acceptable. Under penalties of perjury, I declare that I have examined this return and accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete. Signature Title Date Preaddressed Form 1096. If you received a preaddressed Form Instructions 1096 from the IRS with Package 1096, use it to transmit paper What’s new. After December 1, 2008, tape cartridges will no longer Forms 1099, 1098, 5498, and W-2G to the Internal Revenue Service. be accepted at the Enterprise Computing Center—Martinsburg If any of the preprinted information is incorrect, make corrections on (ECC—MTB). The only acceptable method of filing information the form. returns with ECC—MTB will be electronically through the FIRE If you are not using a preaddressed form, enter the filer’s name, system. See Pub. 1220, Specifications for Filing Forms 1098, 1099, address (including room, suite, or other unit number), and TIN in the 5498, and W-2G Electronically. spaces provided on the form. Where to file. The following changes have been made under When to file. File Form 1096 as follows. Where To File. ● With Forms 1099, 1098, or W-2G, file by March 2, 2009. ● The general addresses have been changed to a three-line format. ● With Forms 5498, 5498-ESA, or 5498-SA, file by June 1, 2009. ● Form 1098-C is now filed at the Internal Revenue Service Center in Austin, Texas, or Kansas City, Missouri, based on the filer’s Where To File location. Send all information returns filed on paper with Form 1096 to the Purpose of form. Use this form to transmit paper Forms 1099, following: 1098, 5498, and W-2G to the Internal Revenue Service. Do not use If your principal business, Form 1096 to transmit electronically. For electronic submissions, see Use the following office or agency, or legal Pub. 1220, Specifications for Filing Forms 1098, 1099, 5498, and three-line address residence in the case of an W-2G Electronically. individual, is located in Caution: If you are required to file 250 or more information returns of any one type, you must file electronically. If you are required to file electronically but fail to do so, and you do not have an approved Alabama, Arizona, Arkansas, Connecticut, Delaware, waiver, you may be subject to a penalty. For more information, see Florida, Georgia, Kentucky, Louisiana, Maine, part F in the 2008 General Instructions for Forms 1099, 1098, 5498, Massachusetts, Mississippi, New Hampshire, Department of the Treasury and W-2G. New Jersey, New Mexico, New York, North Carolina, Internal Revenue Service Center Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Austin, TX 73301 Who must file. The name, address, and TIN of the filer on this form must be the same as those you enter in the upper left area of Forms Virginia, West Virginia 1099, 1098, 5498, or W-2G. A filer is any person or entity who files any of the forms shown in line 6 above. For more information and the Privacy Act and Paperwork Reduction Act Notice, Cat. No. 14400O Form 1096 (2008) see the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.
    • Form 1096 (2008) Page 2 Alaska, California, Colorado, District of Columbia, Box 5. No entry is required if you are filing Forms 1099-A or 1099-G. Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, For all other forms, enter the total of the amounts from the specific Department of the Treasury boxes of the forms listed below. Maryland, Michigan, Minnesota, Missouri, Montana, Internal Revenue Service Center Nebraska, Nevada, North Dakota, Oklahoma, Kansas City, MO 64999 Form W-2G Box 1 Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming Form 1098 Boxes 1 and 2 Form 1098-C Box 4c If your legal residence or principal place of business is outside the Form 1098-E Box 1 United States, file with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301. Form 1098-T Boxes 1, 2, 4, 5, 6, and 10 Form 1099-B Boxes 2 and 3 Transmitting to the IRS. Group the forms by form number and Form 1099-C Box 2 transmit each group with a separate Form 1096. For example, if you Form 1099-CAP Box 2 must file both Forms 1098 and 1099-A, complete one Form 1096 to transmit your Forms 1098 and another Form 1096 to transmit your Form 1099-DIV Boxes 1a, 2a, 3, 8, and 9 Forms 1099-A. You need not submit original and corrected returns Form 1099-H Box 1 separately. Do not send a form (1099, 5498, etc.) containing Form 1099-INT Boxes 1, 3, and 8 summary (subtotal) information with Form 1096. Summary information for the group of forms being sent is entered only in Form 1099-LTC Boxes 1 and 2 boxes 3, 4, and 5 of Form 1096. Form 1099-MISC Boxes 1, 2, 3, 5, 6, 7, 8, 10, 13, and 14 Box 1 or 2. Complete only if you are not using a preaddressed Form Form 1099-OID Boxes 1, 2, and 6 1096. Make an entry in either box 1 or 2; not both. Individuals not in Form 1099-PATR Boxes 1, 2, 3, and 5 a trade or business must enter their social security number (SSN) in box 2; sole proprietors and all others must enter their employer Form 1099-Q Box 1 identification number (EIN) in box 1. However, sole proprietors who Form 1099-R Box 1 do not have an EIN must enter their SSN in box 2. Use the same EIN Form 1099-S Box 2 or SSN on Form 1096 that you use on Forms 1099, 1098, 5498, or W-2G. Form 1099-SA Box 1 Box 3. Enter the number of forms you are transmitting with this Form Form 5498 Boxes 1, 2, 3, 4, 5, 8, 9, and 10 1096. Do not include blank or voided forms or the Form 1096 in your Form 5498-ESA Boxes 1 and 2 total. Enter the number of correctly completed forms, not the number Form 5498-SA Box 1 of pages, being transmitted. For example, if you send one page of three-to-a-page Forms 1098 with a Form 1096 and you have Final return. If you will not be required to file Forms 1099, 1098, correctly completed two Forms 1098 on that page, enter “2” in box 5498, or W-2G in the future, either on paper or electronically, enter 3 of Form 1096. an “X” in the “final return” box. Box 4. Enter the total federal income tax withheld shown on the Corrected returns. For information about filing corrections, see the forms being transmitted with this Form 1096. 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G. Originals and corrections of the same type of return can be submitted using one Form 1096.
    • Reset Form Michigan Department of Treasury 165 (Rev. 7-08) Amended Return Annual Return for Sales, Use and Withholding Taxes Amendment Date Taxpayer Name Account Number Return Year Date Due File this return by February 28. Do not use this form to replace a monthly or quarterly return. A. Use Tax: Sales & Rentals B. Sales Tax Sales and Use Tax 6% 6% 1. Gross sales (including sales by out-of-state vendors subject to use tax) .. 1. 1. 2. Rentals of tangible property and accommodations .................................... 2. 2. 3. Communication services ............................................................................. 3. 3. 4. Add lines 1, 2, and 3 ..................................................................................... 4. 4. ALLOWABLE DEDUCTIONS (i) 5a. Resale .......................................................................................................... 5a. 5a. (i) b. Industrial processing or agricultural producing .......................................... b. b. (i) c. Interstate commerce .................................................................................... c. c. d. (i) d. Exempt services ........................................................................................... d. (i) e. Sales on which tax was paid to Secretary of State ....................................... e. e. (i) f. Food for human/home consumption ........................................................... f. f. (i) g. Bad debts ..................................................................................................... g. g. (i) h. Michigan motor fuel or diesel fuel tax .......................................................... h. h. (i) i. Other. Identify: ____________________________ .................................... i. i. (i) j. Tax included in gross sales (line 1) ............................................................. j. j. k. Total allowable deductions. Add lines 5a - 5j .............................................. k. k. 6. Taxable balance. Subtract line 5k from line 4 .............................................. 6. 6. 7. Tax Rate ........................................................................................................ 7. x .06 7. x .06 8. Gross tax due. Multiply line 6 by line 7 ......................................................... 8. 8. (i) 9. Tax collected in excess of line 8 ................................................................... 9. 9. 10. Add lines 8 and 9 .......................................................................................... 10. 10. (i) 11. TOTAL discount allowed (see instructions) .............................................. 11. 11. 12. Total tax due. Subtract line 11 from line 10 .................................................. 12. 12. (i) 13. Tax payments in current year (after discounts) ............................................ 13. 13. Use Tax on Items Purchased for Business or Personal Use (see back)* (i) 14. Enter your purchases taxable at the 6% rate .................................. 14a. x .06= 14b. (i) 15. Tax payments made in the current year ............................................................................................................ . 15. Withholding Tax (i) 16. Gross Michigan payroll and other taxable compensation for the year ............................................................. 16. (i) 17. Number of W-2s, 1099s, and/or 4119 Forms enclosed ................. 17. (i) 18. Total Michigan income tax withheld per W-2s, 1099s and 4119 Forms .......................................................... 18. 19. Total Michigan income tax withholding paid during current tax year ................................................................ 19. Summary 20. Total sales, use and withholding taxes due. Add lines 12A, 12B, 14b and 18 ................................................ 20. 21. Total sales, use and withholding taxes paid. Add lines 13A, 13B, 15 and 19 .................................................. 21. 22. If line 21 is greater than line 20, enter overpayment ....................... 22. 23. Amount of line 22 to be credited to your account. We will notify you when your credit is verified and available ........... 23. (i) 24. Amount of line 22 to be refunded to you ......................................... 24. (i) 25. If line 21 is less than line 20, enter balance due .............................................................................................. 25. (i) 26. If this return is filed late, enter penalty and interest. (See instructions.) .......................................................... 26. 27. TOTAL PAYMENT DUE. Add lines 25 and 26. Make check payable to "State of Michigan." ........................... 27. Complete and sign the back of this return.
    • Form 165, Page 2 Account Name Account Number Type of Business Ownership (check one only) Individual Michigan Corporation Trust or Estate (Fiduciary) Husband - Wife Subchapter S Joint Stock Club or Investment Company Partnership Professional Social Club or Fraternal Organization Registered Partnership, Agreement Date: Other (Explain) Limited Partnership Non-Mich. Corporation Subchapter S Limited Liability Company Domestic (Michigan) Professional Foreign (Non-Michigan) Reason for Amending Return. Include your account number in the explanation. Signature (you are required to complete all information requested below) I declare under penalty of perjury that this return is true and complete to I declare under penalty of perjury that this return is based the best of my knowledge. on all information of which I have any knowledge. I authorize Treasury to discuss my return with my preparer. Yes No Preparer's Signature, Address, Telephone and Preparer's ID Number Taxpayer's Signature Taxpayer's Social Security Number Telephone Number ( ) Taxpayer's Title (Owner/Officer/Member/Manager/Partner) Date Print Name of Corporate Officer Responsible for Return Telephone Number ( ) Be Aware of Recent Changes in Postal Regulations When Mailing Your Tax Return Effective May 2007, the U.S. Post Office calculates postage based on the weight, size and thickness of an envelope. Consult with the Post Office before mailing to avoid delays in delivery; items with insufficient postage will be returned to the sender by the Post Office. If you are enclosing payment with your return: If you are not enclosing payment: MAIL TO: Michigan Department of Treasury MAIL TO: Michigan Department of Treasury Department 78172 Lansing, MI 48930 P.O. Box 78000 Detroit, MI 48278-0172 *Use Tax on Items Purchased for Business or Personal Use Use lines 14 and 15 to report purchases made for use in your business or for items removed from your inventory for personal or business use. Do not repeat the amounts from Column A, lines 1 - 4 here. To check your Sales, Use and Withholding transactions and ask questions about your account on-line, visit www.michigan.gov/businesstax
    • L DETACH HERE L Michigan Dept. of Treasury 160 (Rev. 9-08) Combined RETURN for Sales Tax 01 Michigan Withholding 06 Michigan Taxes I D Use Form 163 for all address changes. File this return even if no tax is due. Sales Tax Discount 02 MBT Estimates 07 J D Account Office Use Use Tax E (Sales/Rentals) E T Number 91 03 97 T A Return Period Due Date A C Use Tax C ENTER BELOW 2009 20 09 Discount 04 97 H H Company Name H Use Tax 05 97 H (Purchases) E Taxpayer's Signature Date E R R E Voucher 98 Penalty & 99 E I Title Telephone Number Payment Do not subtotal lines on the return. Interest J Mail to: Michigan Department of Treasury, Dept 77003 Detroit MI 48277 - 0003. Make check payable to: "State of Michigan" and include your account number on your check. Total Payment DEPT 77003 DETROIT MI 48277-0003 91 1 10 090 7 4 23 K DETACH HERE K Monthly filers ONLY enter month number 1-12 Quarterly filers ONLY enter quarter number 1-4 CAUTION: Failure To Cut Form At "DETACH HERE" Line(s) Can Result In Previously Approved Form(s) Not Being Accepted 9U25BB 2.000