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| Fi19. Under the Michigan Income Tax Act, MCL 206.367, a film production company that seeks a film production credit must either withhold Michigan income tax on the payments it makes to a PEO/PSC or, alternatively, it must insure that the PEO/PSC ha |
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It is expected that a film production company seeking a film production
credit in Michigan will have a physical presence and employees in this state. An
accompanying registration with the Michigan Department of Treasury should exist
to enable the film production company to submit the Michigan income tax withheld
from employee wages. The film production company should report and pay Michigan
income tax withheld from payments made to PEO/PSCs using the same returns and
payment processes used for reporting and paying their employee withholding.
A PEO/PSC should issue W-2s to their employees with an allocated portion of the
amount withheld by the film production company reported on the W-2 for each
employee. A PEO/PSC should also submit copies of those W-2s to the Michigan
Department of Treasury accompanied by a letter explaining the situation and
identifying the film production companies that withheld and submitted payment to
the Department.
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