Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.3 - Employer

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) The term
				"employer" is defined in section 8(3) of Act No. 281 of the Public Acts of
				1967, as amended, being S206.8(3) of the Michigan Compiled Laws.
(2) The term "employer" means any person for
				whom an individual performs or performed any service, of whatever nature, as
				the employee of such person.
(3) It
				is not necessary that the services be continuing at the time the wages are paid
				in order that the status of employer exist. Thus, for purposes of withholding,
				a person for whom an individual has performed past services for which he is
				still receiving wages from such person is an employer.
(4) An employer may be an individual, a
				corporation, a partnership, a trust, an estate, a joint-stock company, an
				association, or a syndicate, group, pool, joint venture, or other
				unincorporated organization, group, or entity. A trust or estate, rather than
				the fiduciary acting for, or on behalf of, the trust or estate, is generally
				the employer.
(5) The term
				"employer" embraces not only individuals and organizations engaged in a trade
				or business, but also organizations exempt from income tax, such as religious
				and charitable organizations, educational institutions, clubs, social
				organizations and societies, as well as the governments of the United States,
				the states, territories, Puerto Rico, and the District of Columbia, including
				their agencies, instrumentalities, and political subdivisions.
(6) The term "employer" also means any person
				paying wages on behalf of a nonresident alien individual, foreign partnership,
				or foreign corporation, not engaged in trade or business within the United
				States, including Puerto Rico as if a part of the United States.
(7) If the person for whom the services are
				or were performed does not have legal control of the payment of the wages for
				such services, the term "employer" means, except for the purpose of the
				definition of "wages," the person having such control. For example, where
				wages, such as certain types of pensions or retirement pay, are paid by a trust
				and the person for whom the services were performed has no legal control over
				the payment of such wages, the trust is the employer.
(8) The term "employer" also means a person
				making a payment of a supplemental unemployment compensation benefit when it is
				treated as if it were wages under the internal revenue code, 26 U.S.C. S3401.
				For example, if supplemental unemployment compensation benefits are paid from a
				trust which was created under the terms of a collective bargaining agreement,
				the trust shall generally be deemed to be the employer. However, if the person
				making such payment is acting solely as an agent for another person, the term
				"employer" shall means such other person and not the person actually making the
				payment.
(9) It is a basic purpose
				to centralize in the employer the responsibility for withholding, returning,
				and paying the tax, and for furnishing the statements required under chapter 7
				of the Michigan income tax act of 1967.