The bill amends the Income Tax Act of 1967 by updating sections 51f and 711 to enhance the distribution of withholding tax capture revenues. Specifically, it mandates that a portion of these revenues, attributable to certified new jobs, must be deposited into the "good jobs for Michigan fund" and the "more jobs for Michigan fund," as established under the Michigan strategic fund act. The bill clarifies the definitions of terms such as "authorized business," "certified new jobs," and "withholding tax capture revenues" in relation to these funds. Additionally, it introduces a requirement for employers to delineate the taxes withheld and paid to the state versus those paid to community colleges under specific agreements.

Furthermore, the bill modifies the requirements for individuals and employers regarding tax withholding statements and annual reconciliation returns. It specifies that these statements must be issued within 30 days if employment is terminated before the end of the calendar year. The bill also emphasizes that employers with more than 250 employees must file their annual returns electronically and outlines the obligations of individuals receiving income subject to withholding to provide accurate information for tax purposes. Overall, the amendments aim to streamline tax processes and ensure proper allocation of funds related to job creation initiatives in Michigan.

Statutes affected:
Senate Introduced Bill: 206.51, 206.711