Michigan Sales, Use, And Withholding Tax Forms And Instructions (Page 12 of 16) in pdf

your gross sales. Subtract the sum of lines 5a through 5i from

Summary

the gross sales in each column. Divide the result by 17.6667

Line 17: Add lines 13, 14b, and 16 and enter the total.

and enter on line 5j.

Line 18: Penalty and interest are charged for late payment of tax.

Line 5k, Total Deductions: Enter total of lines 5a through 5j.

The penalty is 5 percent of the tax due if the late payment is received

within the ﬁ rst two months of the due date. For each subsequent

Line 6: Subtract line 5k from line 4 to determine the sales

month, or part thereof, the penalty increases by an additional 5

subject to tax.

percent of the tax due. The maximum penalty is 25 percent.

Line 8: Multiply the amount on line 6 by 6 percent (0.06) and

Interest is charged daily at a rate of 1 percent above the prime

enter on line 8.

rate. The interest rate is adjusted on January 1 and July 1.

Line 9: If you collected more tax than the amount on line 8,

Example: If the payment or return was due February 20 but is

enter the difference on line 9.

not received until June 7, calculate the penalty as follows:

Line 10, Total Tax Due: Add lines 8 and 9 and enter total. If

2/21 TO 4/20 (2 MONTHS) = 5%

line 10 is zero or you are not paying by the 20th, skip line 11

4/21 TO 5/20 (1 MONTH) = 5%

(discounts). Enter the amount from column B on the sales tax

5/21 TO 6/7 (PARTIAL MONTH) = 5%

line on your return. Enter the amount from column A on the

TOTAL PENALTY = 15%

use tax (sales/rentals) line on your return.

In addition, add interest at 1 percent above the prime rate as

Line 11: Use Chart 2 below to ﬁ gure your discount (discounts

computed on the total tax due shown on line 17. A penalty and

are not allowed on late payments). Enter the amount from

interest calculator is available on Treasury’s Web site.

your worksheet on the discount line of Form 161 or on the

Line

19,

Corporate

Income

Tax

Estimate:

See

appropriate line for sales or use tax discount on Form 165. Enter

for ﬁ ling instructions.

separate amounts for use tax and sales tax.

Line 20: Add lines 17, 18, and 19 and enter total.

The maximum discount for payments made between the 12th

and the 20th is $15,000 per tax. If you paid part of your tax

DO NOT ENTER CREDIT FIGURES ON THE RETURN.

on or before the 12th, the total combined discount allowed is

Using credit ﬁ gures on the return may result in a tax

$20,000 per tax. If you were open for business for only part of a

assessment. Carry credits forward on your worksheet instead.

month or quarter and you take the minimum discount, multiply

Line 21: Enter any credits for your account here.

the discount by the number of days you were open, then divide

the result by the number of days in the period (30 or 90).

Line 22: Subtract line 21 from line 20. This is the amount of

tax due. Enter this amount on Form 160 and make your check

Use Tax on Items Purchased for Business or Personal Use.

payable for this amount.

Line 14a: Enter taxable purchases.

IMPORTANT: Reduce each of the taxes reported on Form 160

Line 14b: Multiply line 14a by 0.06 and enter the tax due on

to reﬂ ect the amount of the credit. If the amount on worksheet

line 14b.

line 22 is less than zero, enter zero on Form 160. Do not put

amounts on any other line. Carry the rest of the credit forward

Line 15: Enter gross Michigan payroll for the month or quarter.

to the worksheet for the next ﬁ ling period.

Line 16: Enter income tax withheld here and on the withholding

line on Form 165.

LINE 11, FIGURING YOUR DISCOUNT: You can receive a discount by ﬁ ling your sales or use (on sales and rentals) taxes early or timely. Any

portion of taxes paid by the 12th of the month are discounted 3/4 of 1 percent. Taxes paid between the 12th and the 20th (including the 20th) are

discounted 1/2 of 1 percent. Discounts apply only to 2/3 (0.6667) of the sales and/or use tax collected at the 6 percent tax rate. Review the instructions

below to see if you need to do any calculation. If you do, use Chart 2 to ﬁ gure your discount. Complete the chart once for use tax and once for sales tax.

Monthly Filers: If your tax is less than $9, complete Chart 2. If paying by the 12th and your tax is $9 to $1,200, enter $6 on the worksheet, line 11.

If greater than $1,200, complete Chart 2. If paying by the 20th and your tax is $9 to $1,800, enter $6 on the worksheet, line 11. If more than $1,800,

complete Chart 2.

Quarterly Filers: If your tax is less than $27, complete Chart 2. If paying by the 12th and your tax is $27 to $3,600, enter $18 on the worksheet, line 11.

If your tax is more than $3,600, complete Chart 2. If paying by the 20th and your tax is $27 to $5,400, enter $18 on the worksheet, line 11. If your tax is

more than $5,400, complete Chart 2.

CHART 2

Paying by the 12th (Maximum Discount: $20,000)

Paying by the 20th (Maximum Discount: $15,000)

Amount you are paying early ...........

Amount you are paying timely ..................

x 0.6667

STOP. See below. * .....................

STOP. See below. * ....................................

x 0.0075

x 0.005

Discount Amount. Enter on worksheet, line 11

Discount amount. Enter on worksheet, line 11. .........

* If you pay your tax monthly and this amount is $6 or less, enter this amount on your worksheet, line 11. If you pay your tax quarterly and this amount is $18

or less, enter this amount on your worksheet, line 11. All others, ﬁ nish the chart.