Withholding Tax Guide - City Of Grayling - Income Dax Division- 2005
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3CITY OF GRAYLING
P.O. BOX 549
1020 CITY BLVD.
GRAYLING, MICHIGAN 49738
Employer
THIS PUBLICATION CONTAINS:
1. Instructions for withholding
the Grayling income tax
from employee’s pay.
2. Withholding examples at
1% and 1/2%.
CITY OF GRAYLING
INCOME TAX DIVISION
CITY OF GRAYLING
WITHHOLDING TAX GUIDE
Effective January 1, 2005
WITHHOLDING RATES
organization, governmental body or unit or
A new employer should immediately sub-
agency, or any other entity…that employs 1
mit this information to the Grayling Income
Grayling adopted the Michigan Uniform
or more persons on a salary, bonus, wage,
Tax Dept. by letter, telephone, or filing form
City Income Tax Ordinance, effective July 1,
commission or other basis, whether or not
GR-SS-4, Employer’s Withholding Registration.
1972. This publication contains instructions
the employer is in a business.”
and examples for withholding under the new
If a new employer has not received a
ordinance. There are two withholding rates:
Example: A construction firm from Ohio is
Federal number, the city will assign a temporary
one percent (1%); or half of one percent
doing work in Grayling. Even though it has
number. This will be in effect until the Federal
(1/2%).
no Grayling business location, the firm is
number is assigned, at which time the employ-
required to withhold.
er must immediately advise the city.
Use the 1% rate for:
1) Grayling residents working in Grayling.
WHO TO WITHHOLD FROM
An employer who has locations both in
2) Grayling residents working outside of
and out of the city must withhold from all
Employers are required to withhold from the
the city who are not subject to with-
employees working for him in the city, and
following employees:
holding for the city where they work.
from all Grayling residents working for him
1) All residents of the City of Grayling,
outside the city.
Use the 1/2% rate for:
whether or not they work inside the city;
2) All nonresidents of the City of Grayling
A non-profit organization in the city is
1) Nonresidents of Grayling working in
who have Grayling as their predominant
required to withhold from its employees
Grayling.
place of employment.
(even though it is not engaging in business
2) Grayling residents working outside the
activity in the usual sense.)
city who are also subject to withholding
An employee is anyone from whom an
for the place where they work.
employer withholds for either Federal Income
WHO MUST REGISTER
The withholding rates are applied after
Tax or social security tax.
Every employer must register by filing his
allowing for the exemptions claimed by the
Federal Employer Identification number with
employee for himself, his spouse and his
PREDOMINANT PLACE OF EMPLOYMENT
the city. The city will use the Federal number
dependents.
Nonresidents of Grayling are subject to with-
for employer identification.
holding if Grayling is their predominant place of
WHO HAS TO WITHHOLD
employment.
Also required are:
Every employer is required to withhold
The Ordinance defines predominant place
1) complete name of employer;
who:
of employment as “that city imposing a tax
2) address to which quarterly reporting
1) has a location in the city, or
under a uniform city income tax ordinance
forms should be mailed;
2) is doing business in the city even
other than the city of residence, in which the
3) approximate number of employees;
though he has no location in the city.
employee estimates he will earn the greatest
4) date the employer started business or
percentage of his compensation from the
first became subject to the Grayling
An employer is any “individual, partner-
employer, which percentage is 25% or more.
income tax withholding.
ship, association, corporation, non-profit
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