Small Business Required Tax Returns
An Employer has the RESPONSIBILITY to file all tax returns. Assuming you pay payroll weekly or pay your payroll taxes monthly, you will have to file OVER 30 tax returns a year. If you need to file local payroll taxes, add up to 10 more tax returns for each local. Padgett can handle the filing of all the returns for you. Fortunately, almost all agencies except for a few local agencies, file electronically. Now in 2020, you have to file electronically or you are subject to a penalty.
In summary, Tax Returns for the IRS and State of Michigan are required to be filed accordingly:
- A corporate tax return, Form 1120 (CCORP): If the CCORP has a 12/31 fiscal year-end, the 1120 is due by 4-15. The deadline otherwise is 3 1/2 months after the fiscal year-end. This is in effect until such time the business dissolves. In this case, the last Tax Return is marked “Final Return”.
- The SCORP, Form 1120S: If the SCORP has a 12/31 fiscal year-end, the 1120S is due by 3-15. The deadline otherwise is 3 1/2 months after the fiscal year-end. This is in effect until such time the business dissolves. In this case, the last Tax Return is marked “Final Return”.
- A Partnership Tax Return Form 1065, is due 3-15. This is in effect until such time the business dissolves. In this case, the last Tax Return is marked “Final Return”.
- All Form 941’s for the IRS for Payroll for each quarter a business is an on-going concern, even if there is $0 wages. If payroll is discontinued and no more taxes will be submitted, mark the Form 941 as “Final”.
- The annual IRS Form 940 for FUTA, Federal Unemployment Taxes, even if $0 wages until such time payroll is discontinued and the IRS is notified. Add 4 quarterly Tax coupons if you have to make payments during the year, each quarter. If your deposit exceeds $499 for the quarter, you are required to make a #940 deposit.
- All monthly and/or quarterly State Sales, Use and Withholding Tax, must be paid-submitted online. A #5080 must be completed each month or quarter, even if $0.
- The Michigan Annual Sales and Use Tax Return, Form 5081, even if $0 until a Form 1772 is sent in notifying them of the discontinuance of taxes. The Form 5081 is the Annual Reconciliation of all State Sales, Use and Withholding Tax liability thru the year to the #5080 Sales Tax and withholding deposits. See above.
- Michigan Business Tax Return starting in Tax Year 2012, only C corps are required to file the Michigan Business Tax Return, if gross receipts are over $350,000.
- State of Michigan Unemployment Form UIA1028 Wage Detail even if $0 gross wages, until Form 1772 is filed for discontinuance of wages, if applicable.
- State of Michigan, Form MI-1120, Employers Quarterly Payroll Report, even if $0 gross wages, until such time it may be necessary to file the State of Michigan Form 1772 for payroll discontinuance.
- Local Payroll Tax Returns monthly, quarterly or annually – for each local city where an employee or business resides, if the locality requires local taxes be paid. For instance, local payroll returns must be filed for Detroit, Pontiac, etc.
- Local Annual Reconciliation of payroll taxes.
- Personal Property Tax Returns for each business location may be required.
Contact Christy at (586) 474-4855 for assistance with these forms.