518 Michigan PDF Form

Federal, State and Local Taxes

Employers must register with the Internal Revenue Service (IRS) and the Michigan Department of Treasury for Social Security tax (federal) and income tax withholding (federal and state). These taxes must be withheld from each employee’s wages and paid

to the appropriate taxing agency. Some cities also levy a city income tax. Contact the City Treasurer’s office for information.

Employers must report all newly hired employees. See the Michigan Income Tax Withholding Guide, visit the New Hire Reporting website at http://mi-newhire.com or call 1-800-524- 9846 for more information.

Federal Unemployment Tax (FUTA)

Most employers must pay federal unemployment taxes. Contact the IRS toll-free at 1-800-829-3676 for more information.

State Unemployment Insurance Tax

Employers must register with the Unemployment Insurance Agency (UIA) and pay state unemployment insurance taxes. Unemployment taxes are paid entirely by the employer. Employers have an ongoing obligation to inform the Agency of any transfer of assets, organization, payroll, trade or business. Contact the

UIA Tax Office at PO Box 8068, Royal Oak MI 48068-8068; in Michigan, or out of state, call 1-855-484-2636 for account-specific

information. More information can be found on the Agency’s website at www.michigan.gov/uia.

Workers’ Disability Compensation

Most employers are required to provide workers’ disability compensation coverage for their employees. A workers’

disability compensation policy is purchased from a private insurance company. Contact the Workers’ Compensation Agency at PO Box 30016, Lansing MI 48909, or call 517-322-1195 for

more information.

Health and Safety Standards

Employers must comply with health and safety standards under

the federal and state Occupational Safety and Health Act (OSHA) and the Right-to-Know laws. Contact the Michigan Licensing and Regulatory Affairs (LARA), MIOSHA, PO Box 30643, Lansing

MI 48909-8143, or call 517-322-1845 for more information.

Immigration Law Compliance

Employers must verify the employment eligibility of all employees hired after November 6, 1986. Contact the Office of

U.S. Immigration and Custom Enforcement at 313-568-6042 for forms and more information.

New Businesses

Employers are required to file tax returns on time and with the

correct payment when required. Employers are responsible for the accuracy of the returns, regardless of who may be hired

to prepare them. Accurate and complete records must be kept

for determining tax liability properly, as required by law or department rule.

Selling or transferring all or part of your business. Whenever you sell or transfer any part of the payroll, accounts, services or assets of a business covered under the Michigan Employment Security (MES) Act, you must complete a Business Transferor’s Notice to Transferee of Unemployment Tax Liability and Rate

(Form UIA 1027). The seller, seller’s real estate broker or other

agent must deliver the completed Form UIA 1027 to the purchaser of the business at least two business days before the transfer of the business. You may obtain this form at the UIA website at www. michigan.gov/uia or by calling 1-855-484-2636. A Disclosure of Transferor Account (Form UIA 1346), provides the information needed to complete Form UIA 1027 and may be obtained by calling the telephone numbers listed above. If the sale to the purchaser results in the total transfer of the seller’s business, a Discontinuance or Transfer of Payroll or Assets in Whole or Part (Form UIA 1772) must be completed. This form can be obtained from the same website referenced above.

Delinquent taxes owed to the Michigan Department of Treasury

must be paid with this registration. Submit a letter identifying the business name, address, Federal Employer Identification Number

(FEIN), type of tax being paid and the period(s) the tax was due.

Payment should include tax, penalty and interest owed. Go to the website at www.michigan.gov/taxes.

Corporate officers may be held liable for Treasury tax debts incurred by their corporations.

Delinquent collections. Treasury and UIA may both file tax liens

against any taxpayer’s real and personal property and issue a tax warrant or levy to seize and sell the property to pay delinquent taxes.

Successors (buyer or acquirer of a business). If you buy or acquire either an existing or discontinued business or its stock

of goods, you can be held liable for tax debts incurred by the

previous owner. You must withhold sufficient purchase money

to cover these tax debts until the previous owner produces a

receipt showing the taxes have been paid or a certificate stating that no taxes are due. This certificate may be obtained through

the Department of Treasury, Tax Clearance Section. Upon the

owner’s written waiver of confidentiality; under the Authorization

for Disclosure section, at the bottom of page 2 of the Request for

Tax Clearance Appliation (Form 5156), Treasury will release a business’s know tax liability for purposes of establishing an

escrow account to a third party. The Tax Clearance Section can be reached at 517-636-5260.

For unemployment tax purposes, a successor may be held liable for tax debts or the experience account incurred by the previous business. For more information, or to obtain clearance statements, call UIA Employer Ombudsman at 1-855-484-2636 or access the Agency’s website at www.michigan.gov/uia.

--- IMPORTANT INFORMATION ---

Use Tax on Rental or Leased Property

You may elect to pay use tax on receipts from the rental or lease of the tangible personal property instead of paying the sales or use tax on the full cost of the property at the time it is acquired.

If you elect to pay use tax on receipts from the rental or lease, you must

first obtain a Use Tax Registration before you acquire the property.

For additional information, contact the Michigan Department of Treasury at 517-636-6925.

Sales Tax for Concessionaires

If you will make retail sales at only one or two events in Michigan per

year, do not complete Form 518. Instead, complete a Concessionaire’s Sales Tax Return (Form 5089). This form can be found on Treasury’s Web site at www.michigan.gov/taxes or by calling 517-636-6925.

By reading and completing the Michigan Business Taxes Registration Booklet, you can register for any/all of the following business taxes and licenses:

•Sales Tax

•Use Tax

•Income Tax Withholding

•Corporate Income Tax

•Unemployment Insurance Tax.

State unemployment insurance taxes are paid to the Unemployment Insurance Agency (UIA). All other taxes are paid to the Michigan Department of Treasury.

If you need a Motor Fuel License, call 517-636-4600. If you need a IFTA license, call 517-636-4580. If you need a Tobacco Products License, call 517-636-4630. The following are some suggestions of

other places to contact for further help.

Determine Your Business’s Legal Structure

Contact an attorney, accountant or other business professional to

determine the appropriate structure for your business. You may wish to contact the Michigan Licensing and Regulatory Affairs (LARA), at 517-241-6470 for more information about starting a

business.

Register Your Business Name

Depending on the legal structure chosen, the business name may

be registered with the local county clerk’s office or the State of

Michigan. Sole proprietorships and partnerships should contact the county clerk’s office. Corporations, limited partnerships and limited liability companies (LLCs) should contact the Michigan Licensing and Regulatory Affairs (LARA) at 517-241-6470.

Obtain a Federal Employer Identification Number (FEIN)

This number is issued by the IRS and is required if you will have employees. It is also mandatory for your UIA registration. If you do not have an FEIN, contact the IRS at 1-800-829-3676 to request Form SS-4. You can also obtain Form SS-4 at the IRS website at www.irs.ustreas.gov/formspubs/index.html. When you have completed the form, you may call 1-800-829-4933 and provide the information from the form to the agent. The agent may assign your FEIN while you are on the telephone. To complete your FEIN registration, mail the form to the address shown on the form or fax it to 1-829-292-5760.

Obtain Special Licenses

Some occupations, professions and business activities require certification or licensing at the state or local level. An abbreviated

list of state licensing contacts is provided below.

Department of Agriculture

You may also contact your local library, chamber of commerce or the nearest Small Business Development Center for information about state licenses. You can reach the Michigan Small Business Development Center Network at 1-877-873-4567. More information can also be found on the Network’s website at medc. michigan.org. Also check with your county and city clerks for

information about local licenses.

Forms and Information

New business forms can be found on Treasury’s website at www.michigan.gov/businesstaxes or call 517-636-6925 to have forms mailed to you. If you need assistance or more information, contact the appropriate party listed below.

Registration: Call 517-636-6925.

UIA: In Michigan, call toll-free 1-855-484-2636. Questions may also be faxed to 313-456-2130. For questions regarding a specific

account number, call 1-855-484-2636. More information can also be found on UIA’s website at www.michigan.gov/uia.

Unemployment Insurance Agency - Tax Office

Employers may now register for a UIAAccount Number using an online e-Registration application.

The process is easy, secure, convenient and much faster than registering by mail. After completing the on-line registration, you can receive your new UIAAccount Number in as little as three days.

www.michigan.gov/business

Unemployment Insurance Agency - Tax Office

Whenever you contact UIA for tax assistance, please have your ten- digit UIA Account Number, or if you do not have a UIA Account

Number, then your Federal Employer Identification Number (FEIN)

available. Contact Tax Status regarding registering a new business, the sale/discontinuance of a business or seasonal designation. Tax Maintenance provides assistance with tax rates, overpayments, and

940 certifications. Contact Tax Collections about assessments, payment

plans, and tax liens. For general assistance, you may call 1-855-484- 2636 within Michigan or outside of Michigan.

This form is provided under PA 122 of 1941 and the Michigan Employment Security Act. Filing is mandatory if you are required to pay business taxes in Michigan.

Complete this Registration Form if you:

•Start a new business or reinstate an old business.

•Purchase or acquire an existing business.

•Need to register for any of the Michigan taxes listed below.

•Change the type of ownership of your business (e.g., change from sole proprietorship to partnership, or incorporate a sole proprietorship or partnership). Submit to the Unemployment Insurance Agency documents for changes in ownership, management or control, or change in management through arm’s-length transactions.

Do not complete this Registration Form if you:

•Make sales at fewer than three events in Michigan during a calendar year. Instead, file a Concessionaire’s Sales Tax Return and Payment (Form 2271).

•Wish to apply for an ID number for your bank account. Use your Social Security number for this purpose.

Register for Sales Tax if you:

•Sell tangible personal property to the end user from a Michigan location (wholesalers do not need to register).

For more information regarding Sales Tax, go to www. michigan.gov/businesstaxes or call 517-636-6925.

Register for Use Tax if you:

•Lease tangible personal property in Michigan.

•Sell telecommunication services.

•Provide transient hotel or motel room rentals.

•Buy goods for your own use from out-of-state unlicensed

vendors.

•Launder or clean textiles under a sole rental or service agreement with a term of at least five days.

For more information regarding Use Tax, go to www.michigan. gov/businesstaxes or call 517-636-6925.

Register for Employer and Retirement Withholding Tax if you:

•Are an employer withholding federal income tax from employee compensation (see Federal Employer’s Tax Guide Circular E).

•Effective January 1, 2012, Michigan's tax treatment of pension and retirement benefits changed and these benefits will be

subject to income tax for many recipients. Michigan law now requires the administrators of pension and retirement benefits to withhold income tax on payments that will be subject to tax.

For more information regarding Withholding Tax, go to www. michigan.gov/businesstaxes or call 517-636-6925. Individual

owners and partners may not remit withholding on their wages through their business account numbers. They must file quarterly

income tax estimates. For information about quarterly estimates, call 517-636-4486.

Corporate Income Tax

Michigan's Corporate Income Tax (CIT) imposes a 6 percent

income tax on entities that are treated as C Corporations for federal

income tax purposes. Insurance companies and financial institutions

pay special taxes.

3

Register for Corporate Income Tax if you:

•Have apportioned or allocated gross receipts greater than

$350,000 (with the exception of insurance companies and financial institutions).

For more information regarding business taxes, visit Treasury’s website at www.michigan.gov/taxes or call 517-636-6925.

Register for Motor Fuel Tax if you:

•Operate a terminal or refinery for gasoline, diesel or aviation fuel or import from a foreign country.

•Transport fuel across a Michigan border for hire.

•Are a position holder in a fuel terminal.

•Sell diesel fuel for use in watercraft.

•Sell LPG for highway use.

•Sell aviation fuel for resale.

For more information regarding Motor Fuel Tax, visit Treasury's

website at www.michigan.gov/taxes or call 517-636-4600.

Register for IFTA Tax if you:

•Operate a diesel-powered vehicle for transport across Michigan’s borders, having three or more axles, or having two axles and a gross vehicle weight over 26,000 pounds.

For more information regarding IFTATax, visitTreasury’s website at www.michigan.gov/IFTA or call 517-636-4580.

Register for Tobacco Products Tax if you:

•Sell cigarettes or other tobacco products for resale.

•Purchase any tobacco products from unlicensed out-of-state sources.

•Sell cigarettes or other tobacco products in a vending machine.

For more information regarding Tobacco Tax, go to at www. michigan.gov/tobaccotaxes or call 517-636-4630. If, after

reviewing your registration, Treasury determines that you need to file a Tobacco Tax License, you will be contacted with instructions

on how to apply for a license.

Register for State Unemployment Tax if you:

•Have employees performing services in Michigan.

•Plan to have employees working or performing services in

Michigan.

•Have acquired all/part of the payroll, accounts, services or assets of a business having employees in Michigan.

All employers must complete a Liability Questionnaire (UIA ScheduleA) and a Successorship Questionnaire (UIASchedule B).

For more information, visit Treasury’s website at www.michigan

.gov/taxes or UIA’s website at www.michigan.gov/uia.

For specific information regarding missing UIApayments, reports, penalties, and/or interest, in Michigan, call 1-855-484-2636. Be

sure to have your UIA Account Number, or if you do not have a

UIA Account Number, then your Federal Employer Identification Number (FEIN) available.

Mailing Instructions

Mail your completed registration and UIA schedules to: Michigan Department of Treasury

PO Box 30778 Lansing MI 48909

Mail your application at least six weeks, but not more than three

months, before you intend to start your business to allow your registration to be processed. Treasury will forward your application to UIA.

Treasury will mail your personalized Sales, Use and Withholding Tax returns. UIA will issue your unemployment account number.

Lines not listed are explained on the form.

Reason for This Application. Check the reason why you are

completing this application. If more than one reason applies, in most cases, check all that apply. The sole exception arises if you

are registering for withholding on an employee payroll, and for withholding on pension payments to retirees, and one of those

will be performed by a third party (e.g., a payroll service). In that case, file a separate Form 518 for the each of the two functions, so

as to identify clearly which party (taxpayer or payroll service) is handling each function.

Line 1, Federal Employer Identification Number (FEIN). The

Internal Revenue Service (IRS) issues the FEIN. If you need an

FEIN, contact the IRS at 1-800-829-3676 and ask for Form SS-4,

or visit the IRS website at www.irs.ustreas.gov/formspubs/index. html to download the form.

Line 2, Company Name. If your company is a partnership or corporation, include the appropriate indicator in this box: LLP, LLC, Corp, Inc, PC or LC. If your business is a sole proprietorship, enter

the owner’s name here and the business name on line 3.

Line 4, Legal Address. Enter the street address where your books and records are kept for audit purposes. You must also receive

mail there.

Line 5, Mailing Address. This may be a Post Office box or any

other address where you want business tax forms mailed.

Line 6, Physical Address. Enter the Michigan physical address if the actual location of your business is different from the legal

address, line 4.

Line 7, Business Ownership Type Code. Enter the business type code from the list below that precisely describes the business entity being registered.

Limited Liability Companies (LLC)

Select a code based on how the LLC files its federal income tax

Corporation incorporated under law of any other state or country

Corporate ID Number. This item is only applicable if you have a

Michigan business entity.Anon-Michigan entity will not be issued a LARA Corporate ID number.

Line 9, Business Code. Locate the six-digit code that best describes your business on the list of North American Industrial Classification

System (NAICS) codes found at: http://www.census.gov/eos/www/ naics. Enter that code on Line 9. You must supply a NAICS code.

Line 10, Business Activity. Briefly describe the specific business activity or affairs the business will be transacting or conducting

in Michigan.

Line 11, Products You Sell. Briefly describe what products you will sell to the final consumer.

Lines 12 to 15, Taxes. Check the box for each tax type you expect

to pay. Indicate in the space next to each tax type the date your

liability for that tax begins. For Sales Tax, Use Tax and Employer and Retirement Withholding, check the box that indicates how much each month you expect to pay of that tax. Please note that a

C Corporation (or entity taxed federally as such) is required to pay the Michigan Corporate Income Tax if its apportioned or allocated gross receipts exceed $350,000 in a year.

Line 16, Unemployment Insurance Tax. If you will be paying

this tax, you should already have received an FEIN from the

IRS. Be sure to enter this number on Line 1 and complete the

attached Unemployment Insurance Agency (UIA) Schedule A and

Schedule B. If this is the only tax you will be paying, send these

forms and other requested documents to Unemployment Insurance

Agency, Tax Office at:

Line 17a, Motor Fuel Tax. Check this box if your business will

be selling motor fuel or if your business will include operation of a commercial vehicle transporting motor fuel.

Line 17b, IFTA Tax. Check this box if your commercial vehicle qualifies for IFTA and you will have interstate travel.

Line 18, Tobacco Tax. Check this box if you will be selling tobacco

products to other businesses or will be purchasing untaxed tobacco from an unlicensed source.

Line 19, Number of Locations. Enter the number of Michigan locations that will need a Sales Tax License.

Line 20, Fiscal Year. Enter the two-digit number that corresponds to the month in which you close your tax books. For instance, if your tax year is from July to June, enter “06” for June.

Line 21, Seasonal Business. Complete this only if your business is not open the entire year. Enter two two-digit numbers corresponding

to the months your business opens and closes, respectively. For example, if your business is open from October to May, enter “10” on the first line and “05” on the second line. NOTE: Seasonal businesses are required to file monthly returns for the months

that they are open.

Do not submit this form solely for the purpose of making sales

at only one or two events in Michigan per year. Instead, submit a Concessionaire’s Sales Tax Return (Form 5089). This form can be

Started a New Business

Reinstating an Existing Account

Hired Employee/Hired Michigan Resident

Incorporated/Purchased an Existing Business

Acquired/Transferred All/Part of a Business

Added a New Location(s)

PEO: Client Level Reporting

Report Wages After Total Transfer/Sale of Business

Other (explain)_________________________

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.

17a.

17b.

18.

19.

Motor Fuel. Treasury will review your registration and contact you for any additional information.

IFTA Tax. Apply for a license first at www.michigan.gov/IFTA. You may contact IFTA at 517-636-4580. Tobacco Tax. Complete line 27. Treasury will review your registration and will contact you for more information.

518, Page 2

20.

21.

22.

23.

on Treasury’s Web site at www.michigan.gov/taxes, or by calling 1-517-636-6925.

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. Access Michigan Treasury Online (MTO) at mto.treasury.michigan.gov or attach Authorized Representative Declaration (Power of Attorney) (Form 151). This form can be obtained on Treasury’s Web site at www.michigan.gov/taxes, or by calling 1-517-636-6925.

Enter the name of your payroll service provider:_____________________________________________________________

If you are incorporating an existing business, or if you purchased an existing business, list previous business names, addresses, and FEINs, if known.

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

26.IFTA Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/IFTA) a. Do you own a diesel-powered vehicle used for transport across Michigan’s borders with three

27.Tobacco Tax: (if you answer Yes to any of the questions below, see Web site michigan.gov/tobaccotaxes) Do you intend to:

Complete all the information for each owner (sole proprietor or member), partner, or corporate officer. 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. A signature is REQUIRED for each person listed in boxes 28-31. 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.

Questions regarding this form should be directed to Treasury at 517-636-6925. Submit this form six weeks before you intend to start your business. MAIL TO: Michigan Department of Treasury, PO Box 30778, Lansing, MI 48909.

(See instructions to determine if applicable) If Agricultural, skip to Section 2.

If Domestic/Household,skip to Section 3.

Source

Start Date

End Date

C.

D .

Check this box if you elect to be a contributing employer. Leaving this box unchecked 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 1C, above).and must provide the amount (or estimate of their gross annual payroll here:

SECTION 2

2.AGRICULTURAL EMPLOYERS ONLY

A.If you have had a total cash payroll of $20,000 or more for agricultural 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 weeks in the current or preceding calendar year, enter the date the 20th

SECTION 4

ALL EMPLOYERS

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