Michigan Department of Treasury
4285 (Rev. 03-21)

Questions and Answers About Paying Your Withholding Tax on an Accelerated 
Schedule

Key Factors About Filing Your Withholding Tax on an Accelerated Schedule 
Required for withholding tax liability that averages $40,000 or more each month of the previous calendar 
 year (total liability of more than $480,000)
Payment schedule is changed to match your payment schedule for Federal Withholding tax
You are required to file returns on a monthly basis on or before the 20th day of the subsequent month
Payments must be made via an electronic payment method i.e. ACH Credit payment, EFT Debit payment 
 through Michigan Treasury Online (MTO)

1.  What is Accelerated Withholding Tax?               5.  When am I required to begin Accelerated 
a. Acceleratedwithholdingtaxisamodifiedpayment         Withholding Tax payments?
 schedule for remitting Michigan withholding           a. TheMichiganDepartmentofTreasurywillnotify
 tax. Public Acts 82 and 83 of 1991 require            you in writing of your change to accelerated
 taxpayers to make their payments in the same          withholding.Acceleratedwithholdingtaxpayments
 manner and according to the same schedule as          must continue unless you are notified in writing
 their federal withholding tax payments, when          of a change to your filing status. These written
 they paid a monthly average of $40,000 or more        notificationsaregenerallymailedinApril,andthe
 incometaxwithholdingintheprecedingcalendar            changesareeffectivefortheJulytaxperiod.
 year. For more information, see MCL 205.19 at         6.   What are the payment requirements and schedule 
 www.legislature.mi.gov.                               for Accelerated Withholding ?
2.   A division of a corporation does not have as      a. Accelerated withholding tax payments must be
 great a liability as the corporation itself. Is the   made according to the same schedule as your
 division required to file its withholding tax on an   Federal withholding tax payments. Accelerated
 accelerated basis?                                    withholding tax payments must be made by
a. Yes.Thecorporationisconsideredonelegalentity,       ElectronicFundsTransfer(EFT)throughMichigan
 whichincludesalldivisions.                            TreasuryOnline(MTO)website,byACHCredit,or
3.   I am required to file on an accelerated basis for byusingapprovedproprietarythird-partysoftware.
 Withholding tax, but my Sales and Use tax liability   Paymentbywiretransferwillnotbeaccepted.
 is quite small. How shall I file my other taxes?      7.   Can I send a check with my return?
a. Once any Sales, Use or Withholding (SUW) tax        a. No. Accelerated tax payments must be made by
 hasbeendeterminedan Acceleratedfiler, allother        EFT.AcceleratedpaymentsnotmadebyEFTare
 SUWtaxesmustbefiledonamonthlyfrequency.               subjecttopenaltyandinterest.
 Additionally, anAnnual Reconciliation Return is       8.   When do I have to initiate a payment for it to be 
 requiredFebruary28ofeachyear.                         timely? 
4.   Are Accelerated Withholding accounts required to  a. FortimelyreceiptofpaymentthroughMTO,filers
 file a monthly return?                                must complete their payment transaction by 8
a. Yes. A return for each month must be filed by       p.m. EST one business day prior to the due date.
 the 20th of the subsequent month. Accelerated         ACH Credit and approved proprietary third-party
 withholdingaccountscanfileanelectronicreturn          software filers will need to contact their financial
 via MTO or through approved proprietary third-        institutionforpaymenttransactionrequirements.
 party software. If neither option is available,       9.   What if the pre-payment or return due date falls 
 visit www.michigan.gov/taxes for forms that are       on a weekend or holiday?
 availableforpaperfiling.                              a. If the 20th day of the month falls on a weekend,
                                                       stateholidayorbankingholiday,theduedateisthe
                                                       nextbusinessday.

b. NOTE:Foralistingofspecificstateholidays,refer    13.  Will registering to pay other business taxes 
to Sales, Use and Withholding Tax Due Dates for     electronically eliminate the return requirement?
Holidays and Weekends(Form3149.)                    a. No. Although payments can be remitted
10. What notification is needed if I change banks?  electronically, you will still be required to file a
a. EFT Credit Filers need to provide their new      returnonamonthlybasis.
financialinstitutionwith Instructions for Payments  14. What if I pay more than one type of tax?
of Michigan Sales, Use, Withholding, and Other      a. A separate transmission must be made for each
Michigan Business Taxes Using Electronic Funds      taxtype.YoumaynotcombineSalesandUsetax
Transfer (EFT) Credit(Form2329.)                    payments into one lump sum transmission. The
b. EFT Debit filers have the capability of adding,  followingfive-charactertaxcodesshouldbeused
changing,ordeletingbankaccountand/orrouting         tocompleteyourtransmission(s):
number information through their bank account       i.    01100 Withholding - Employer and
accessedthroughMTO.Thisisdonebyselecting                  Retirement
the“OtherPaymentOptions”tablocatedinMTO,               04200Sales   Tax
thenclicking“ManagePayments,”Fromthere,you
                                                    04400Use        TaxonSalesandRentals
will be redirected to JP Morgan Chase’s website
                                                    iv 04500Use     TaxonPurchases
whereyoucanaccessthesefunctionsbyclicking
“ManageAccounts.”                                   v 02355MichiganBusiness            TaxExtensions
11.  How far in advance may I complete my payment   02655MichiganBusiness              TaxAnnual
data?                                               02670CorporateIncome               TaxAnnual
a. TaxpayersmakingpaymentsviaMTOcaninitiate         02170CorporateIncome               TaxEstimate
paymentsupto90daysinadvanceofthesettlement          02370CorporateIncome               TaxExtensions
date.                                                  07020MarihuanaRetailExcise      Tax
b. TaxpayersmakingACHcreditpaymentsorusing          15. What if I hire or change a payroll service?
approvedproprietarythird-partysoftwaretofileand     a. A taxpayer can add a payroll service provider
remit payments are advised to consult with their    for their account by completing the “Manage
financialinstitutionforfurtherinformation.          Representatives” option under the Registration
12. Can other business taxes be paid by EFT?        functioninMTO,orbycompletingandsubmitting
a. Yes. EFT Credit filers should refer to Form 2329 the Authorized Representative Declaration (Power
for a listing of the tax type codes to use in the   ofAttorneyForm151.)
transmissionofthenewtaxtype.                        16. What if I still have questions?
b. YoucanmakepaymentsforSales,Use,Withholding,      a. If you have questions concerning your account
Michigan Business, Corporate Income, and            or the accelerated process, call (517) 636-6925,
Marihuana Retail Excise taxes through Michigan      visit www.michigan.gov/AskSUW, or send
TreasuryOnline.                                     correspondence
c. Additional information regarding EFT payments    MichiganDepartmentof  Treasury 
can be found at www.michigan.gov/treasury           P.O.Box30427   
by clicking the link for Michigan Treasury          Lansing,Michigan48909
Online under “Popular Services,” or at 
www.michigan.gov/biztaxpayments.