Your Responsibilities Concerning Taxes
Federal, State and Local Taxes
(Form UIA 1027). The seller, seller’s real estate broker or other
agent must deliver the completed Form UIA 1027 to the purchaser
Employers must register with the Internal Revenue Service (IRS)
of the business at least two business days before the transfer of the
and the Michigan Department of Treasury for Social Security tax
business. You may obtain this form at the UIA Web site at www.
(federal) and income tax withholding (federal and state). These
michigan.gov/uia or by calling 1-855-484-2636 or 313-456-2300.
taxes must be withheld from each employee’s wages and paid
A Disclosure of Transferor Account (Form UIA 1346), provides
to the appropriate taxing agency. Some cities also levy a city
the information needed to complete Form UIA 1027 and may be
income tax. Contact the City Treasurer’s ofce for information.
obtained by calling the telephone numbers listed above. If the sale
Employers must report all newly hired employees. See the
to the purchaser results in the total transfer of the seller’s business,
Michigan Income Tax Withholding Guide, visit the New Hire
a Discontinuance or Transfer of Payroll or Assets in Whole or Part
Reporting Web site at http://mi-newhire.com or call 1-800-524-
(Form UIA 1772) must be completed. This form can be obtained
9846 for more information.
from the same Web site referenced above.
Federal Unemployment Tax (FUTA)
Delinquent taxes owed to the Michigan Department of Treasury
Most employers must pay federal unemployment taxes. Contact
must be paid with this registration. Submit a letter identifying the
the IRS toll-free at 1-800-829-3676 for more information.
business name, address, Federal Employer Identication Number
(FEIN), type of tax being paid and the period(s) the tax was due.
State Unemployment Insurance Tax
Payment should include tax, penalty and interest owed. Go to the
Employers must register with the Unemployment Insurance
Web site at www.michigan.gov/taxes.
Agency (UIA) and pay state unemployment insurance taxes.
Corporate ofcers may be held liable for Treasury tax debts
Unemployment taxes are paid entirely by the employer. Employers
incurred by their corporations.
have an ongoing obligation to inform the Agency of any transfer
of assets, organization, payroll, trade or business. Contact the
Delinquent collections. Treasury and UIA may both le tax liens
UIA Tax Ofce at PO Box 8068, Royal Oak MI 48068-8068; in
against any taxpayer’s real and personal property and issue a tax
Michigan, call 1-855-484-2636; out of state call 313-456-2300 for
warrant or levy to seize and sell the property to pay delinquent
account-specic information. More information can be found on
the Agency’s Web site at www.michigan.gov/uia.
Successors (buyer or acquirer of a business). If you buy or
acquire either an existing or discontinued business or its stock
Workers’ Disability Compensation
of goods, you can be held liable for tax debts incurred by the
Most employers are required to provide workers’ disability
previous owner. You must withhold sufcient purchase money
compensation coverage for their employees. A workers’
to cover these tax debts until the previous owner produces a
disability compensation policy is purchased from a private
receipt showing the taxes have been paid or a certicate stating
insurance company. Contact the Workers’ Compensation Agency
that no taxes are due. This certicate may be obtained through
at PO Box 30016, Lansing MI 48909, or call 517-322-1195 for
the Department of Treasury, Tax Clearance Section. Upon the
owner’s written waiver of condentiality; under the Authorization
Health and Safety Standards
for Disclosure section, at the bottom of page 2 of the Request for
Tax Clearance Appliation (Form 5156), Treasury will release
Employers must comply with health and safety standards under
a business’s know tax liability for purposes of establishing an
the federal and state Occupational Safety and Health Act (OSHA)
escrow account to a third party. The Tax Clearance Section can
and the Right-to-Know laws. Contact the Michigan Licensing and
be reached at 517-636-5260.
Regulatory Affairs (LARA), MIOSHA, PO Box 30643, Lansing
MI 48909-8143, or call 517-322-1845 for more information.
For unemployment tax purposes, a successor may be held liable
for tax debts or the experience account incurred by the previous
Immigration Law Compliance
business. For more information, or to obtain clearance statements,
Employers must verify the employment eligibility of all
call UIA Employer Ombudsman at 1-855-484-2636 or access the
employees hired after November 6, 1986. Contact the Ofce of
Agency’s Web site at www.michigan.gov/uia.
U.S. Immigration and Custom Enforcement at 313-568-6042 for
forms and more information.
--- IMPORTANT INFORMATION ---
Use Tax on Rental or Leased Property
You may elect to pay use tax on receipts from the rental or lease of
Employers are required to le tax returns on time and with the
the tangible personal property instead of paying the sales or use tax
correct payment when required. Employers are responsible for
on the full cost of the property at the time it is acquired.
the accuracy of the returns, regardless of who may be hired
If you elect to pay use tax on receipts from the rental or lease, you must
to prepare them. Accurate and complete records must be kept
rst obtain a Use Tax Registration before you acquire the property.
for determining tax liability properly, as required by law or
For additional information, contact the Michigan Department of
Treasury at 517-636-6925.
Selling or transferring all or part of your business. Whenever
Sales Tax for Concessionaires
you sell or transfer any part of the payroll, accounts, services or
If you will make retail sales at only one or two events in Michigan per
assets of a business covered under the Michigan Employment
year, do not complete Form 518. Instead, complete a Concessionaire’s
Security (MES) Act, you must complete a Business Transferor’s
Sales Tax Return (Form 5089). This form can be found on Treasury’s
Web site at www.michigan.gov/taxes or by calling 517-636-6925.
Notice to Transferee of Unemployment Tax Liability and Rate