Local Tax Code

[SensibleandHourly]

Hello Tax community, 

Any Michigan tax preparers out there that might be familiar with local code, MI - C? Box 20. 

I've been looking at the Michigan website and can't seem to find it. 

My client's W-2 last year did not have the local boxes filled, but this year, Box 18 has his wages, Box 19 is zero, and Box 20 has this mystery code. 

Thank you all, 

Dawn 

[dkh]

Is this W2 from Indiana based employer?   

[qbteachmt]

This is on the W2, right? I thought it has to be 6 characters.

https://quickbooks.intuit.com/learn-support/en-us/w2-payroll-forms/michigan-cities-local-tax-names-f...

You might need to ask that employer.

[qbteachmt · Accepted solution]

@dkh likely has it right...

http://http-download.intuit.com/http.intuit/CMO/payroll/support/payroll_updates/StateLocalDocs/local...

I teach and support QB clients, including payroll, so they have my best reference materials.

Variable rate by county This rate is entered on the “Other tab” on the employee's record in QuickBooks. Enter “C”, then the adopting county code. For county code listings, refer to Departmental Notice #1, published by the Indiana Department of Revenue.

County subject to withholding

Select the county associated with the county tax rate entered for an employee. QuickBooks uses the county name on the Local Tax Summary report to provide a county-by-county breakdown of wages paid and taxes withheld. You can use this report to assist you in preparing the Breakdown Indiana County Tax Withheld section on the WH-1 and WH-3 tax forms. To run the Local Tax Summary report, choose Reports from the QuickBooks menu bar and then choose Employees & Payroll > More Payroll Reports in Excel > Local Tax Summary.

[SensibleandHourly]

Thank you for the detailed information. The company is local but it looks like a possible affiliated company in Indiana.

Box 20 on the W-2 is spaced so that it could be considered six spaces perhaps. MI - C.

I'll see if I can get any information from the employer. The other odd thing is that the company address and client address are both in Northern Michigan and neither county assesses local taxes. 

Hmmmm.