Income Statement Remittance Guide

Overview

Income statements are Internal Revenue Service (IRS) forms required to be filed by persons or businesses who pay compensation to persons or businesses. The IRS determines the type of federal form required and the State of Michigan follows these federal guidelines.

The Michigan Department of Treasury requires issuers to file state copies of the following income statements: 

  • W-2 when issued to a Michigan resident employee, to report work performed in Michigan, or to report Michigan income tax withheld.
  • W-2C if withholding was erroneously underreported on the original W-2.
  • W-2G when required to report certain gambling winnings of, and withholding for, nonresidents of Michigan.
  • 1099s (specifically, 1099-R, 1099-MISC, and 1099-NEC) whenever issued to a Michigan resident, without regard to where the issuer is domiciled, where the resident’s work or services were performed, or whether or not withholding is indicated on the form.

Most state copies of income statements are due to Treasury on or before January 31. Form 1099-MISC is the exception: paper filed due February 28, electronically filed due March 31.

 

 Income Statement Filing Options in Michigan

FIRE/CFSF Program. Michigan participates with the federal Combined Federal/State Filing (CF/SF) Program. This means that the IRS shares certain income statements with Michigan, which automatically satisfies a Michigan taxpayer’s filing requirement with Treasury. In order for a taxpayer or their service provider to take advantage of this program, they must apply with the IRS and remit income statements electronically through the IRS’ Filing Information Returns Electronically (FIRE) System. The IRS issues Publication 1220 each year, which provides guidance on this electronic remittance process, including accepted forms and formats.

Note: While state and local reporting positions for Form 1099-NEC are included in the 2020 version of Publication 1220, the IRS specifically states that this information will not be shared with states through the CF/SF Program. It is unclear if this decision is specific to 2020 or for all tax years moving forward. Please see filing options below to send 1099-NEC information directly to Treasury. 

Michigan Treasury Online (MTO).  Business taxpayers and their service providers who need to send state copies of income statements directly to Treasury are encouraged to do so electronically using MTO. While electronic submission is available to all taxpayers, those issuing 250 or more income statements must use MTO to electronically send a magnetic media formatted file.

MTO Option 1: Upload all income statements for a particular business.
After logging in to MTO using your personal user profile, access the Sales, Use, and Withholding (SUW) portal under Tax Services. If you have not already, connect to the registered business tax account (or accounts in the event of multiple clients) that issued income statements. After creating this relationship, click the name of the business on the SUW Dashboard. Select Additional Services under SUW Actions and click Wage Statements. This MTO page is where you can upload W-2 and 1099 information; all accepted file sizes and formats are listed. Click Upload. Select the applicable tax year of the income statements and click Select a W2 File to choose a computer file. Click Upload to send the file to Treasury. You will receive a confirmation number.    

MTO Option 2: Upload specially formatted W-2 information.

EFW2 is a type of electronic data file format used by employers and service providers to send W-2 forms to the federal Social Security Administration (SSA). Every year, the SSA publishes a document called “Specifications for Filing Forms W-2 Electronically (EFW2)”, which provides filing instructions and specifications on preparing data files in the EFW2 format.

MTO’s EFW2 portal provides a way to send Treasury a copy of the federal file and satisfy Michigan W-2 reporting requirements. After logging in to MTO using your personal user profile, access the EFW2 Upload portal under Guest Services. Review the file size and format requirements. Click Upload. Select the applicable tax year of the income statements and click Select a W2 File to choose a computer file. Click Upload to send the file to Treasury. You will receive a confirmation number.    

Magnetic Media. Treasury accepts Publication 1220 and EFW2 income statement data in physical format for taxpayers with fewer than 250 income statements. Taxpayers issuing 250 or more income statements must use MTO to electronically send a magnetic media formatted file. Please refer to Form 447, Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s for guidance on magnetic media.

Paper Form Mailing: Treasury accepts mailed state copies of income statements to: Michigan Department of Treasury Lansing, MI 48930. Do not include the SUW annual return.

 

 MTO – Reminders

Taxpayers with 250 or more income statements:

  • Follow Publication 1220 or EFW2 format in electronic submissions.
  • Ensure no missing or incomplete records.
  • Do not change PDF file format to text (TXT) file format; upload in the original file format unless you need to compress size to a smaller file (ZIP).
  • Upload multiple files per year if necessary.

Taxpayers with fewer than 250 income statements:

  • Publication 1220 or EFW2 format not required but encouraged if voluntarily participating in federal electronic remittance programs.
  • You can scan physical income statement state copies, convert to PDF format, and upload electronically.
  • ZIP multiple PDF files together and upload 1 file if possible.
  • Upload multiple files per year if necessary.

 

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