Employer'S Withholding Tax Forms And Instructions

2016 COMMON INCOME TAX WITHHOLDING FORMS (FINAL VERSION)

City of {City Name}

Income Tax Department

INSTRUCTIONS FOR

FORM CF-501, EMPLOYER'S MONTHLY DEPOSIT OF INCOME TAX WITHHELD, AND FORM

CF-941, EMPLOYER'S QUARTERLY RETURN OF INCOME TAX WITHHELD

A. MONTHLY DEPOSITS AND QUARTERLY RETURNS

Most Michigan cities levying an income tax require monthly deposit of income tax withheld for the first or

second month of a quarter in which the amount withheld exceeds $100.00. Monthly deposits are made using

Form CF-501. Remittance in full payable to the {City Name} is required. Monthly deposits are due on the last

day of the month following the month. Example: The monthly deposit, Form CF-501, for May is due June 30.

Quarterly returns of income tax withheld are filed using Form CF-941. Remittance payable to {City Name} is

required. Quarterly returns and payments are due on the last day of the month following the end of the quarter.

The quarterly return, Form CF-941, for the first quarter is due April 30.

Mail monthly deposits, Form CF-501, and quarterly returns, Form CF-941, to the {Address for city listed in

Appendix G}.

A monthly deposit is not required if less than $100 is withheld during a month.

A quarterly return, Form CF-941, is required even though no tax was withheld during a quarter. Under such

circumstances, a quarterly return, form CF-941, must be filed showing zero tax withheld.

If the payment of wages has been temporarily discontinued for any reason, such as the seasonal nature of the

business, the employer must continue to file returns.

If you would like to get information on how to file your payments by ACH debit or credit please call

{phone number listed in Appendix H for city}.

B. INITIAL RETURNS

Registration forms can be found on the city’s website, {city’s website address per Appendix H}.

If you cannot wait for forms to timely file your first return, include a letter with your withholding tax payment

providing the following information: Name of Business Owner(s), Type of Ownership, Federal Employer

Identification Number (FEIN), d.b.a., physical address, mailing address and period covered.

If you have applied for, but not yet received, an FEIN, write "FEIN Pending" in place of the FEIN. A temporary

number will be assigned. Notify the Income Tax Department as soon as you receive your FEIN.

If a business is sold or transferred at any point during a reporting period, both the old and new employer must

file returns for the period. Neither employer should report tax withheld by the other; both employers should use

their own FEIN numbers. Also see instructions for Final Returns.

C. FINAL RETURNS – NOTICE OF CHANGE OR DISCONTINUANCE

If no wages are to be paid in the future, complete and file a Notice of Change or Discontinuance, Form CF-IT-6.

If the business has been sold or transferred, provide the name of the new owner(s), the date transferred and their

FEIN. Also, provide the name, address and telephone number of the person who will have custody of the books

and records of the discontinued business.

When discontinuing a business, the Employer's Annual Reconciliation of Income Tax Withheld, Form CFW-3,

and a W-2 form for each employee must be filed. These forms are due by the end of the month following the end

of the quarter of discontinuance.

D. ALL EMPLOYERS

Pre-printed forms should be used in filing returns. Forms can be obtained at {city’s website address per

Appendix H}.

Verify the name, address and FEIN on the monthly deposit and quarterly return forms (CF-501 and CF-941). If

an error is noted, the necessary corrections should be made on the form, and a Notice of Change or

Discontinuance should be completed and filed.

DO NOT TAKE CREDIT FOR A PRIOR YEAR'S WITHHOLDING OVERPAYMENT! A claim for

refund of any prior year's overpayment must be submitted. See Form CFW-3 for instructions for filing a refund

claim.

Calculate and remit penalty and interest on all delinquent tax payments and delinquent returns. A sample Penalty

and Interest Worksheet, including penalty and interest rates and instructions, is reproduced on the back cover of

this booklet. Attach a copy of the penalty and interest worksheet to all delinquent returns and remit the penalty

and interest with the tax withheld.

Printed 11/20/2015

Page 22 of 66

Employer'S Withholding Tax Forms And Instructions - 2016 Page 3

Related Articles

Related forms

Related Categories