United States

Michigan: Pass-through Entity Withholding Eliminated For Tax Years Beginning After July 1, 2016

Jun 20, 2016
From KPMG TaxWatch

Loading the player...

Beginning next year, pass-through entities will no longer be required to withhold Michigan income taxes. House Bill 5131, which was signed into law on June 8, 2016, eliminates the requirement for pass-through entities (such as S corporations, partnerships, limited partnerships, limited liability partnerships, and limited liability companies) to withhold taxes effective for tax years that begin on or after July 1, 2016.

Most partnerships will be subject to withholding for the entire 2016 tax year. Specifically, for tax years that began before July 1, 2016, pass-through entities generally must continue to withhold tax at the rate of 4.25 percent for each nonresident individual partner and 6.0 percent for each partner that is a corporation or pass-through entity. Please contact Dale Kim at 212-954-3920 or Mike Bozimowski at 313-230-3183 with questions on Michigan House Bill 5131.

For more information about TWIST or to view archived episodes, please visit our TWIST homepage.

 Subscribe to TWIST via iTunes, or  Subscribe via RSS.

To receive TWIST e-mails each Monday morning, make sure that state, local and indirect is checked off as one of your topics of interest on the KPMG TaxWatch registration site.

The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.