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Instructions for Form 5323
2021 City of Detroit Income Tax Withholding Monthly/Quarterly Return
Purpose • When completing lines 1 though 6, enter amounts in dollars
and cents (i.e., the dollar amount in the larger data field and
The purpose of this form is for an employer to file a City of cents in the smaller data field).
Detroit Income Tax Withholding return and make payments
• Lines 1, 3 and 6 MUST BE COMPLETED. If there is no
on behalf of an employee. This form is used to make either
amount to report, enter “0” in the larger data field and “00” in the
monthly or quarterly payments, as applicable.
smaller data field. DO NOT LEAVE THESE LINES BLANK.
IMPORTANT: See the 2021 City of Detroit Income Tax Blank fields may delay processing of returns.
Withholding Guide available online at www.michigan.gov/ • Do not use a dash or any other mark to indicate no data.
citytax for additional details on an employer’s withholding These lines must be completed with a numeral.
obligations.
Taxpayer’s Business Name: The business name used here is the
Due Date same name the taxpayer will use when filing the City of Detroit
Employers are requiredtofileareturn onamonthly orquarterly Income Tax Withholding Annual Reconciliation (Form 5321).
basis, and may elect to make their payments electronically or Street Address: All correspondence regarding this return will
by paper check. Employers filing a paper return and making be mailed to the address provided on this return.
a payment by paper check should include payment with the
Federal Employer Identification Number (FEIN): The FEIN
return. Employers filing electronic payments must also file
used here is the same name the taxpayer will use when filing
a return. Employers choosing to e-file the return and make a
the Form 5321. Do not write “SAME” or leave blank. Doing so
payment by paper check should include payment with a City of
may delay processing returns or correspondence.
Detroit Income Tax Withholding E-file Payment Voucher (Form
5322). See Form 5322 for additional instructions. NOTE: If the taxpayer does not have an FEIN, the taxpayer
must obtain an FEIN before filing a City of Detroit Income Tax
Monthly returns: The City of Detroit Income Tax Withholding Withholding Return. Visit www.michigan.gov/businesstaxes
Monthly/Quarterly Return (Form 5323) and payments (if for information on obtaining an FEIN and to register a new
applicable) are due on the 15th day of the month following the business (located under “New Business Registration”). Returns
month in which the tax was withheld. received without a registered account number will not be
Quarterly returns: Form 5323 and payments (if applicable) processed until such time as a number is provided.
are due on the 15th day of the month following each quarter. Return Period Ending: Enter the filing period this return is for.
For the 2021 tax year, these due dates are April 15, July 15 and
October 15, 2021, and January 15, 2022. Line 1: Enter the total City of Detroit income tax withheld for
the return period. THIS LINE MUST BE COMPLETED.
Monthly and Quarterly filers are also required to file the City of
Detroit Income Tax Withholding Annual Reconciliation Return NOTE: Form 5323 must be filed even if there is no tax liability
(Form 5321). See Form 5321 for additional instructions. for the period. If there is no tax liability due, enter “0.00”
NOTE FOR ALL TAXPAYERS: If the taxpayer inserts Line 2: This line is used to correct errors made on prior
a “0.00” (zero) on any line for reporting withholding tax, the monthly/quarterly returns for the current calendar year only.
taxpayer is certifying that no tax is owed for that period. If • If intending to correct a previous period overpayment, write
it is determined that tax is owed, the taxpayer will be liable the number as a negative.
for the deficiency as well as penalty and interest. Form 5323 • If intending to correct a previous period underpayment, write
must be filed even if there is no tax liability for the period. the number as a positive.
If filing of City Withholding tax is no longer required, Form Line 3: Add line 1 and line 2 and enter here. If the result is
5321 must be completed to discontinue. See Form 5321 for negative, enter “0.00” and retain the difference in your records
additional instructions. for an adjustment on the next Form 5323. THIS LINE MUST
BE COMPLETED.
Electronic Filing
Line 4 and Line 5: How to compute penalty and interest:
Filing of tax returns and payments electronically is accurate,
convenient and secure. E-file returns have significantly less • If submitting a payment after the due date, include the
chance of error and are processed faster than paper returns. calculated penalty and interest in the payment amount. Penalty
When e-filing, do not mail a paper copy of Form 5323, unless is 1% of the tax due and increases by an additional 1% per
requested by Treasury to do so. month or fraction thereof, to a maximum of 25%.
• Interest is charged daily using the average prime rate, plus 1
Visit www.MIfastfile.org for more information.
percent.
Line-by-Line Instructions Interest rates are detailed online via Revenue Administrative
Lines not listed are explained on the form. Bulletins. Go online to www.michigan.gov/treasury and
select “Reports & Legal Resources.”
Important Information for Completing Form 5323:
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