Bill > SB0426

This bill amends the Michigan Income Tax Act to clarify and modify several provisions related to tax withholding, with a particular focus on professional employer organizations (PEOs) and community colleges. The bill updates how taxes are withheld by employers, including provisions for employers who have agreements with community colleges for new job training programs. Key changes include modifications to withholding requirements for various types of income such as pension payments, employment compensation, and winnings from casinos or race meetings. The bill simplifies language around tax withholding, removes some outdated provisions related to flow-through entities, and ensures that when an employer has an agreement with a community college, a portion of withheld taxes can be redirected to support new job training programs. The bill also requires larger employers (those with more than 250 employees) to file annual tax returns electronically and mandates that employers with new job agreements provide detailed reporting on tax withholdings. Importantly, the bill is tied to another piece of legislation (Senate Bill 425) and will only take effect if that bill is also enacted into law.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0426