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Posted on: January 4, 2021

Income Tax Office Provides Employers with 2020 Year-End Reporting Reminders & 2021 Withholding Hints

EAST LANSING, Mich. — With the start of a new year, the East Lansing Income Tax Office has issued some 2020 year-end reporting reminders and helpful hints for 2021 withholding for employers.

Year-End Reporting Reminders
Employers must provide all W-2 forms noting East Lansing withholding along with an East Lansing W-3 form, which reconciles the payments made to the City with the amount withheld from employees. If the amount withheld is more than the amount paid, employers will need to submit payment at the time of filing. If the payments exceed the amount withheld, employers can submit a written request for a refund. This information for 2020 is due by March 1, 2021. Employers can submit this information electronically using the instructions located on the City’s Income Tax website at https://www.cityofeastlansing.com/1915/Income-Tax-Forms (see Employer Withholding section). Employers that are already using the Employer Withholding Tool to submit their payments electronically can use that same tool to upload their year-end information.

During the Year
If the amount withheld is more than $100 per month, employers are reminded that they are required to pay this amount monthly. Payments can only be made quarterly if the amount is less than $100 per month. The City has been flexible with this requirement for the first two years of the income tax; however, moving forward, failure to comply with this requirement may result in penalty and interest assessments.

The City has an option for employers to pay withholding electronically rather than by check. If employers are interested in this option, there is detailed information available on the City’s Income Tax website at https://www.cityofeastlansing.com/1931/Employer-Withholding-Tool.

Other Items
Some employees who have an East Lansing mailing address are not residents of East Lansing and therefore are not required to pay the 1 percent resident rate. An interactive map is available at https://www.cityofeastlansing.com/incometax, which can be used to verify whether addresses are located inside or outside of the City’s limits.

In addition to the income tax ordinance applying to individuals, it also requires all corporations, partnerships and sub-s corporations to file and pay local income tax on their annual earnings earned within the City of East Lansing. Those with questions regarding this requirement are encouraged to review this with their tax preparer or call the East Lansing Income Tax Office at (517) 319-6862.

Additional income tax information for individuals/employees will be issued by the East Lansing Income Tax Office later this month.

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