Filing Frequency Changes to Michigan Sales, Use, and Withholding Accounts

Each year, the Michigan Department of Treasury reviews all Sales, Use, and Withholding (SUW) accounts and determines if the business' total tax liability for the calendar year warrants a filing frequency change. Depending on the business' growth and tax liability, a taxpayer's filing frequency could increase or decrease.

Beginning January 1, 2018, there will be new filing frequency thresholds for SUW tax returns. The frequency is based on the taxpayer's prior year actual SUW tax liability.

2018 Filing Frequency Thresholds

  Filing Frequency         Prior Withholding Liability      
  Annually   $0 - 750
  Quarterly   $750.01 - 12,000
  Monthly   More than $12,000

As a result of the new thresholds, some taxpayers will move from a monthly to a quarterly filing frequency. This change will reduce their filing obligations and enable the Department of Treasury to administer SUW more efficiently. Please note - a taxpayer experiencing enough business and tax liability growth could move to a higher filing frequency; however, the new threshold amounts alone will not cause a taxpayer to move to a higher filing frequency.

The Department of Treasury has begun the filing frequency review and any SUW taxpayers that require a filing frequency change will receive a notice - similar to this - near the end of November 2017. Save the notice for your records and update your filing frequency accordingly. Form 5081 is required for all taxpayers who file on a quarterly or monthly basis.

To learn more, or if you have questions regarding your SUW liability, please contact your Beene Garter professional.