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Your Responsibilities Concerning Taxes

or assets of a business covered under the Michigan Employment

Federal, State and Local Taxes

Security (MES) Act, you must complete a Business Transferor’s

Employers must register with the Internal Revenue Service

Notice to Transferee of Unemployment Tax Liability and Rate

(IRS) and the Michigan Department of Treasury for Social

(Form UIA 1027). The seller, seller’s real estate broker or other

Security tax (federal) and income tax withholding (federal and

agent must deliver the completed Form UIA 1027 to the purchaser

state). These taxes must be withheld from each employee’s

of the business at least two business days before the transfer of the

wages and paid to the appropriate taxing agency. Some cities

business. You may obtain this form at the UIA Web site at www.

also levy a city income tax. Contact the City Treasurer’s

michigan.gov/uia or by calling 1-855-484-2636 or 313-456-2300.

office for information. Employers must report all newly hired

A Disclosure of Transferor Account (Form UIA 1346), provides

employees. See the Michigan Income Tax Withholding Guide,

the information needed to complete Form UIA 1027 and may be

visit the New Hire Reporting Web site at http://mi-newhire.

obtained by calling the telephone numbers listed above. If the sale

com or call 1-800-524-9846 for more information.

to the purchaser results in the total transfer of the seller’s business,

Federal Unemployment Tax (FUTA)

a Discontinuance or Transfer of Payroll or Assets in Whole or Part

(Form UIA 1772) must be completed. This form can be obtained

Most employers must pay federal unemployment taxes. Contact

from the same Web site referenced above.

the IRS toll-free at 1-800-829-3676 for more information.

Delinquent taxes owed to the Michigan Department of Treasury

State Unemployment Insurance Tax

must be paid with this registration. Submit a letter identifying the

Employers must register with the Unemployment Insurance

business name, address, Federal Employer Identification Number

Agency (UIA) and pay state unemployment insurance taxes.

(FEIN), type of tax being paid and the period(s) the tax was due.

Unemployment taxes are paid entirely by the employer.

Payment should include tax, penalty and interest owed. Go to the

Employers have an ongoing obligation to inform the Agency of

Web site at www.michigan.gov/taxes.

any transfer of assets, organization, payroll, trade or business.

Corporate officers may be held liable for Treasury tax debts

Contact the UIA Tax Office at P.O. Box 8068, Royal Oak, MI

incurred by their corporations.

48068-8068; in Michigan, call 1-855-484-2636; out of state

Delinquent collections. Treasury and UIA may both file tax liens

call 313-456-2300 for account-specific information. More

information can also be found on the Agency's Web site at www.

against any taxpayer’s real and personal property and issue a tax

warrant or levy to seize and sell the property to pay delinquent taxes.

michigan.gov/uia.

Successors (buyer or acquirer of a business). If you buy or acquire

Workers’ Disability Compensation

either an existing or discontinued business or its stock of goods,

Most employers are required to provide workers’ disability

you can be held liable for tax debts incurred by the previous owner.

compensation coverage for their employees. A workers’

You must withhold sufficient purchase money to cover these tax

disability compensation policy is purchased from a private

debts until the previous owner produces a receipt showing the taxes

insurance company. Contact the Workers’ Compensation Agency

have been paid or a certificate stating that no taxes are due. This

at P.O. Box 30016, Lansing, MI 48909, or call 517-322-1195 for

certificate may be obtained through the Department of Treasury,

more information.

Collection Division, Tax Clearance. Upon the owner’s written

waiver of confidentiality a Limited Power of Attorney (Form 3840)

Health and Safety Standards

Treasury will release a business’s known tax liability for purposes

Employers must comply with health and safety standards

of establishing an escrow account. The Tax Clearance office can be

under the federal and state Occupational Safety and Health Act

reached at 517-636-5260.

(OSHA) and the Right-to-Know laws. Contact the Michigan

For unemployment tax purposes, a successor may be held liable

Licensing and Regulatory Affairs (LARA), MIOSHA, P.O. Box

for tax debts or the experience account incurred by the previous

30643, Lansing, MI 48909-8143, or call 517-322-1845 for more

information.

business. For more information, or to obtain clearance statements,

call UIA Employer Ombudsman at 1-855-484-2636 or access the

Immigration Law Compliance

Agency’s Web site at www.michigan.gov/uia.

Employers must verify the employment eligibility of all

--- IMPORTANT INFORMATION ---

employees hired after November 6, 1986. Contact the Office of

U.S. Immigration and Custom Enforcement at 313-568-6042 for

Use Tax on Rental or Leased Property

forms and more information.

You may elect to pay use tax on receipts from the rental or lease of the

tangible personal property instead of paying the sales or use tax on the

New Businesses

full cost of the property at the time it is acquired.

Employers are required to file tax returns on time and with the

If you elect to pay use tax on receipts from the rental or lease, you must

correct payment when required. Employers are responsible for

first obtain a Use Tax Registration before you acquire the property.

the accuracy of the returns, regardless of who may be hired

For additional information, contact the Michigan Department of Treasury at

to prepare them. Accurate and complete records must be kept

517-636-6925.

for determining tax liability properly, as required by law or

Sales Tax for Concessionaires

department rule.

If you will make retail sales at only one or two events in Michigan per year,

Selling or transferring all or part of your business. Whenever

do not complete Form 518. Instead, complete a Concessionaire's Sales Tax

Return and Payment (Form 2271). This form can be found on Treasury's

you sell or transfer any part of the payroll, accounts, services

Web site: www.michigan.gov/taxes or by calling 517-636-6925.

Form 518, Michigan Business Taxes Registration Booklet - Michigan Department Of Treasury Page 2

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