UHY LLP News Alert - Changes to flow-through withholding requirements

Events Calendar

Property Taxes

Were the property taxes calculated correctly on your property tax bill? Could your property tax bill get reduced? Property taxes often represent a significant operating expense for businesses but opportunities to reduce the property tax bills are sometimes overlooked.

Contact your UHY professional today.

Quick Links

Archive

Have you missed an issue or recently joined our mailing list?

All past newsletters can be downloaded from our archive for your reading pleasure.

Changes to flow-through withholding requirements

Up until January 1, 2012 Michigan's Income Tax Act required withholding at a rate of 4.35% on the income allocable to members, partners and shareholders who were non-resident individuals, regardless of income levels of the flow-through entity.

As of January 1, 2012 this requirement was extended to also require flow-through entities to withhold at a rate of 6% on the income allocable to its members, partners or shareholders that are either C Corporations or another flow-through entity.

Generally, this withholding requirement will only be applicable if the flow-through entity has Michigan business income greater than $200,000. In addition, if the flow-through entity that has a flow-through entity as a member, shareholder or partner is able to identify the ultimate taxpayer of the distributive share of income from the entity, the withholding rate may be reduced to 4.35% for a non-resident individual or zero for a resident individual.

Withholding is required to be submitted quarterly on Form 4917 for all affected flow-through entities, with an annual reconciliation on Form 4918.

The State of Michigan is currently sending out notices to all business that it has identified as having a reporting requirement. If you receive one of these notices it means that your business is included in the Treasury's withholding registry. Those that receive this notice but do not have a 2012 withholding requirement are required to file a Notice of Change or Discontinuance (Form 163) to remove their business from the Treasury's withholding registry.

For more information or questions on this topic, please contact your professional at UHY LLP in Farmington Hills (248) 355-1040 or Sterling Heights (586) 254-1040 or visit us on the Web at uhy-us.com.

Events Calendar

CORE Business Management Webinar

Start your week out right with an executive-level, 55-minute webinar. The CORE Business Management complimentary webinar series is packaged to provide busy executives with the understanding, business direction and recommended strategies to help address, achieve and maintain business profitability and viability. Each session will run from 8:05 AM-9:00 AM EST. The series targets strategy, tools and methodologies to achieve and sustain a viable business based on strengthening a company's processes leading to increase profitability, market share and operational control.

02/20 What Does It Cost? An Activity-Based Approach

03/05 Strategic Marketing: Transition & Position for Market Growth

03/19 Strategic Supply Chain Management

04/02 Grants, Credits & Other Revenue Enhancing Strategies

04/16 Reshoring/Backshoring: A Manufacturing Opportunity?

04/30 Developing & Implementing a Strategic Marketing Plan

05/14 Web, Mobile and Emerging Technologies

05/28 Retooling Your Economic Engine

06/11 Social Media as a Marketing Tool

CPE credit is offered.The CORE webinar series will be presented by Alan Lund, Consulting Principal. Alan has over 30 years of experience providing business process analysis and profit improvement services. To register please contact Alan Lund via email alund@uhy-us.com or phone 248-204-9447.

PEO Briefing Webinar Series

Tuesday, February 21, 2012

12:00 PM-1:00 PM EST

Please join us for this quick hitting lunch hour geared towards PEO business owners, chief executives and chief financial officers. Topics will include PEO benchmarking, hot tax topics and a financial accounting update. CPE credit will be offered.

Pre-registration for this complimentary webinar is required. Space is limited. Multiple registrations are welcome. Please contact Courtney Gray via phone 586-843-2533 or email cgray@uhy-us.com to register.

Webinar log-in instructions will be announced at a later date.

Fifth Annual D.M.G.C. Texas Hold Em' Tournament & Chili Cook-Off

Proceeds this year benefit The Mary Gregory Memorial Scholarship Foundation

Thursday, March 1, 2012

Sterling Heights Lions Club Hall * 12828 Canal Road, Sterling Heights, MI 48313

Registration at 6:00 PM * Game starts promptly at 7:00 PM

Chili Cook-Off

Anyone can enter Chili Cook-Off * Bring your Crock-Pot * Prizes for best, worst and hottest chili

Cash and checks only * Sorry, no credit cards

Email Courtney to save your spot * Cash contribution requested at door * $100 buy-in * Must be 18 to play * Top-notch, non-cash prizes * Must be 21 to purchase alcohol

Also...SAVE THE DATE for the 17th Annual Dan McCarty Golf Classic

Saturday, June 9, 2012 * Twin Lakes Golf and Swim Club

Registration starts at 7:00 AM * Shotgun start at 8:00 AM * Sponsorship opportunities available * Proceeds benefit Lupus Alliance of America * More information to come

Published by UHY LLP News.

Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.