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.
Tax Policy & Finance
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.
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.
The Michigan Chamber of Commerce issued the following statement in response to legislation introduced today in both the State House and Senate that would preempt local governments from imposing a tax on food and beverages.
Bills to return the taxation of dental prosthetics in Michigan to tax exempt status were introduced in both the State House and Senate last week. The Michigan Chamber supports "re-exempting" dental prosthetics from the sales tax to help control health care costs.
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?
Lawmakers have returned to Lansing and are expected to have a busy fall. Here is a glimpse of the issues the Michigan Chamber expects them to tackle in the coming months.
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.