Employer'S Withholding Tax Forms And Instructions - City Of Grand Rapids

CITY OF GRAND RAPIDS

INCOME TAX DEPARTMENT

PENALTY AND INTEREST WORKSHEET

FOR DELINQUENT WITHHOLDING TAX RETURNS

RETURN PERIOD

DUE DATE

TAX DUE

INTEREST

PENALTY

MINIMUM P & I

TOTAL DUE

Attach a copy of completed worksheet to each delinquent return.

INTEREST CALCULATION INSTRUCTIONS:

Interest is due from the due date of a return until the tax is paid.

Interest Rates:

For period 1/1/2003 through 6/30/2003 the interest rate is 5.8% per year or 0.0001589 per day.

For period 7/1/2003 through 12/31/2003 the interest rate is 5.4% per year or 0.0001479 per day.

For period 1/1/2004 through 6/30/2004 the interest rate is 5% per year or 0.0001366 per day.

For period 7/1/2004 through 12/31/2004 (Use rate for first six months of 2004 or call for rate.)

Interest rates are set by the Michigan Department of Treasury. The interest rate changes every six months. For the

current interest rate or rates for past periods, visit the Michigan Department of Treasury web site at

,1607,7-121-1750_2143_3248---,00.html and look for the most recent Revenue

Administrative Bulletin on Interest Rates.

Interest Computation: For Interest Rate Period:

1/1/2003 to 6/30/2003:

Number of days after due date: _____ times 0.0001589 times tax due = $_________

7/1/2003 to 12/31/2003:

Number of days after due date: _____ times 0.0001479 times tax due = $_________

1/1/2004 to 6/30/2004:

Number of days after due date: _____ times 0.0001366 times tax due = $_________

7/1/2004 to 12/31/2004:

Number of days after due date: _____ times 0.0001366 times tax due = $_________

Total interest.

Add the interest calculated on the lines above and

enter on the INTEREST line of the worksheet.

Total Interest

$_________

PENALTY CALCULATION INSTRUCTIONS:

Penalty is due upon failure to file a return or failure to timely pay tax due.

Penalty Rate: One percent (1%) of the tax due per month (or portion thereof) per return.

A p

one percent of the tax due

enalty of

is applied on the first day after the due date of the return.

one percent of the tax due

An additional penalty of

is added on the first day of each subsequent month.

Maximum penalty is 25% of the tax due per return.

Penalty Computation:

Number of months delinquent times 1% (.01) times the tax due = $ _________

Enter the penalty calculated on the PENALTY line of the worksheet.

MINIMUM PENALTY AND INTEREST CALCULATION:

The minimum amount of penalty and interest combined is $2.00 per return.

Calculation of minimum penalty and interest:

If total penalty and interest is greater than $2.00 minimum does not apply.

If total penalty and interest is less than $2.00, enter $2.00 on the MINIMUM P & I line of the worksheet.

Employer'S Withholding Tax Forms And Instructions - City Of Grand Rapids - 2004 Page 4

Related Articles

Related forms

Related Categories