Tax Policy & Finance

Sales and Use Tax: Who Owes What?

Many Michigan businesses are well aware of the Andrie, Inc. V. Department of Treasury case that really muddied the waters on how taxpayers claim an exemption from Use Tax because the Sales Tax was already paid. It has been over three years since the Supreme Court reversed the Court of Appeals decision in Andrie and, unfortunately, the controversy surrounding who owes what tax continues. 

Contesting Retroactive Unemployment Taxes

man with stuff boxed up

The State of Michigan Unemployment Agency (MUA) has implemented numerous changes in recent years to its tax rate determination process. One of those changes could cause employers to pay additional taxes and interest on a retroactive basis. Employers unaware of these changes may suddenly find themselves having to pay back unemployment taxes and interest and penalty, even though they paid all the original taxes correctly and timely.

Chamber Supports Effort to Simplify Tax Appeals

Far too often, taxpayers are forced to endure unnecessary hardship just to comply with state taxes. The Michigan Chamber supports HB 4976 to give taxpayers an opportunity to rectify discrepancies in tax assessments without having to go through a long, expensive, and time consuming legal battle. The Chamber commends the Michigan Department of Treasury for its efforts to give taxpayers a common-sense avenue to straighten out tax issues that arise.

Best Protection from Wage Garnishment Risks

If a wage garnishment is mishandled, employers can become directly liable for their employee’s judgment debt, which could potentially be a five-figure sum. When you add this to the regrettable truth that Michigan is near the top of the list for the volume of wage garnishments issued to collect judgments from the debtor’s employer, the result is that Michigan businesses are at significant risk.

What can you do to minimize the cost and reduce the risk posed by wage garnishments?

Senate Dems Propose Massive UI Benefit Increases; Chamber Strongly Opposed

Legislation introduced last week would massively increase the 100 percent employer-financed unemployment insurance (UI) weekly maximum benefit amount and dependent allowance. It would also compensate those harmed by false fraud allegations. These changes could more than double an employer’s maximum exposure for a former employee, increasing potential benefit charges from $7,840 to $14,060 per claimant. While not contemplated by the legislation, there is no doubt that this legislation would lead to sharp UI tax increases on employers.