This 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 when they have entered into agreements under the community college act.

Furthermore, the bill modifies the requirements for employers regarding the issuance of income 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 updates the deadlines for filing annual returns and reports, particularly for employers with more than 250 employees, who are required to file electronically. Overall, the amendments aim to streamline tax processes and ensure that funds are allocated effectively to support job creation in Michigan.

Statutes affected:
Senate Introduced Bill: 206.51, 206.711