Bill > HB4324

This bill amends Michigan's Income Tax Act to improve transparency and information for taxpayers regarding worker classification and to enhance the state income tax return. Starting with the 2025 tax year, the bill requires the Michigan Department of Treasury to include a page in the tax instruction booklet that explains the rules and factors for classifying workers as either employees or independent contractors. Additionally, the bill mandates that the department send a notice to individuals listed on Form 1099-MISC providing similar classification information. The notice and instruction booklet will include contact information for the Michigan Department of Labor and Economic Opportunity's Wage and Hour Division and the Michigan Department of Attorney General, enabling workers to report potential payroll fraud if they believe they have been incorrectly classified as an independent contractor. The bill also makes minor technical changes to the tax return, such as requiring certain language modifications and adding a space for taxpayers to indicate their willingness to participate in the anatomical gift donor registry. These changes aim to provide greater clarity and support for workers in understanding their employment classification and potential rights.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4324