MICHIGAN STATE TAX CALCULATION#
State Tax Calculation - General Set Up#
Please refer to the US Federal Tax Calculation document's 'General Set Up' section for all set up requirements.At state level, the following screens should be verified set up for each state:
IPUTR#
This screen is used to:- view US Tax Rates by state and to enter the Overridden rates and Wage Base.
- suppress some SUTA Surcharge Calculation for some states by checking the 'Do not Calculate' toggle
IPUTP #
This screen is used to:- view US Tax Miscellaneous Parameters by the states that are applicable for IPRLU
IDGV#
- This screen may optionally contain specific Override rates and Wage bases by Government Registration for each Registration from the Pay Header's group
- IDGV overridden amounts take precedence over the IPUTR overridden amounts
IPRLU/IPRULS #
- Each employee must be set up with the applicable Tax Methods
- Miscellaneous Tax Parameters must be set up by the states that need to be paid
UPRLU #
This process audits the US Tax Filing information and generates IPRLU Miscellaneous Tax Parameters information according to IMCT set upIPPH #
- The Pay Header tab must specify the default Work Jurisdiction and Home Jurisdiction
- In the Pay Lines tab, the Jurisdiction field must specify the Work Jurisdiction of this pay line
- After Trial Calc or UPCALC, the Pay Amounts tab will contain all US Taxation amounts in summary that are used for the calculation of net pay
- The Pay Jurisdiction tab contains the default Work Jurisdiction and Home Jurisdiction
- After Trial Calc or UPCALC, the Pay Jurisdiction tab contains all US Taxation amounts by jurisdiction in detail
Michigan State Tax Calculation#
On IPUTR, there is a list of applicable taxes to be calculated for State of Michigan:26-000-0000-SIT-000 | Michigan State Tax |
26-000-0000-ER_SUTA-000 | Michigan State Unemployment Tax |
If UPUTR is run with list of IDTX Jurisdictions, then the following entry may exist:
26-000-1619197-CITY-000 | Big Rapids City Tax |
26-000-619906-CITY-000 | Albion City Tax |
26-000-1617959-CITY-000 | Detroit City Tax |
MI – IPRLU Set Up#
The Miscellaneous Tax Parameters must be set up for the following Miscellaneous IdentifiersTOTALALLOWANCES | Optional Enter the total number of allowances |
PREDOMINANT_CITY | Optional This is only used for Multiple Tax Jurisdictions |
e.g. set IPRLU PREDOMINANT_CITY to 1619197 for Big Rapids
In most cases, PREDOMINANT_CITY should not be entered. When this is entered, the Non-Resident tax will be calculated at Non-Resident rate.
MI – ER SUTA Rate#
ER SUTA may be bypassed on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’.There are two options to set up the ER SUTA rate by state:
- IPUTR
- Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
- This rate is applicable for the entire company within the State of Michigan.
- IDGV
MI – City Taxes#
IPUTR - Employer SUTA Surcharge Tax- Iowa Reserve Fund - The Tax Rate for the Iowa Reserve Fund is set at 0 by the government, therefore this tax is not calculated
- Iowa Administrative Surcharge Tax - The Tax Rate is set at 0 by the government, therefore this tax is not calculated
If UPUTR is run with list of IDTX jurisdictions, the following entries will exist with the default City tax rates.
26-000-1619197-CITY-000 | Big Rapids City Tax |
26-000-619906-CITY-000 | Albion City Tax |
26-000-620755-CITY-000 | Battle Creek City Tax |
26-000-1617959-CITY-000 | Detroit City Tax |
City taxes are calculated by GNIS code, please set up Pay Components for City Tax PC Usages.
MI – Trial Calc Example#
Symmetry Set Up - MI_01.jpgWork GEO: MI 26-107-1619197 Big Rapids
IPRLU Miscellaneous Tab
PREDOMINANT_CITY = 0
TOTALALLOWANCES = 0
PC 8046 Res SIT Earn | = 2183.31 |
PC 8056 Res SSP Earn | = 908.25 |
PC 6042 Res SIT | = 94.97 |
PC 6052 Res SIT Sup | = 39.51 |
PC 6703 SUI ER Contr | = 3403.85 x IPUTR 26-000-0000-ER_SUTA-000 Overridden Rate 0.103 |
= 350.60 | |
PC 6951 Res CITY Tax | = 2183.31 x IPUTR 26-000-1619197-CITY-000 Rate 0.01 |
= 21.83 | |
PC 6953 Res CITY Sup Tax | = 908.25 x IPUTR 26-000-1619197-CITY-000 Rate 0.01 |
= 9.08 |
Notes#
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