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Michigan Department of Treasury
4285 (Rev. 03-15)

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
Filing frequency is changed to match your payment schedule for Federal withholding tax
Payments must be made using Electronic Funds Transfer (EFT)

1. What is Accelerated Withholding Tax? 5. Are Accelerated Withholding accounts required to
Accelerated withholding tax is a modified payment file a monthly paper return?
schedule for remitting Michigan withholding tax. Yes. Accelerated withholding accounts can file an
Public Acts 82 and 83 of 1991 require taxpayers who electronic return via MTO or through approved
paid a monthly average of $40,000 or more income tax proprietary third party software. If neither option is
withholding in the preceding calendar year to make available, visit www.michigan.gov/taxes for forms
their payments in the same manner and according to that are available for paper filing.
the same schedule as their federal withholding tax 6. What notification is needed if I change banks?
payments. EFT Credit Filers need to provide their new financial
2. When am I required to begin Accelerated institution with Instructions for Payments of Michigan
Withholding Tax payments? Sales, Use, Withholding, and Other Michigan Business
The Michigan Department of Treasury will notify you Taxes Using Electronic Funds Transfer (EFT) Credit
in writing of your change to accelerated withholding. (Form 2329).
Accelerated withholding tax payments must continue EFT Debit filers have the capability of adding,
unless you are notified in writing of a change to your changing, or deleting bank account and/or routing
filing status. These written notifications are generally number information through their bank account
mailed in April. accessed through MTO. This is done by selecting
3. What are the payment requirements and schedule the “Additional Payment Options” tab located in
for accelerated withholding? MTO, then clicking “Pay” and then logging into Pay
Accelerated withholding tax payments must be made Connexions and clicking on “Manage Accounts”.
according to the same schedule as your Federal 7. How far in advance may I complete my payment
withholding tax payments. Accelerated withholding data?
tax payments must be made by Electronic Funds Taxpayers making payments via MTO can initiate
Transfer (EFT) through Michigan Treasury Online payments up to 90 days in advance of the settlement
(MTO) website, by ACH Credit, or by using approved date. Taxpayers making ACH credit payments, or
proprietary third party software. Payment by wire using approved proprietary third party software to file
transfer will not be accepted. The return must be and remit payments are advised to consult with their
filed by the 20th of the subsequent month. For financial institution for further information.
timely receipt of payment through MTO, filers must 8. What if I hire or change a payroll service?
complete their payment transaction by 8 p.m. ET, one
A taxpayer can register or change a payroll service
business day prior to the due date. ACH Credit and
provider for their account by completing the “Taxpayer
approved proprietary third party software filers will
Representatives” portion of the MTO registration, or
need to contact their financial institution for payment
by completing and submitting the Payroll Service
transaction requirements.
Provider Combined Power of Attorney Authorization
4. What if the due date falls on a weekend or holiday? and Corporate Officer Liability (COL) Certificate for
If the due date falls on a weekend, state holiday, or Businesses (Form 3683).
banking holiday, the due date is the next business day.
NOTE: For a listing of specific state holidays, refer
to Sales, Use and Withholding Tax Due Dates for
Holidays and Weekends (Form 3149).

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8. Can other taxes be paid by EFT? Instructions for Payments of Michigan Sales, Use or
Michigan sales, use and withholding taxes, Michigan Withholding Taxes Using EFT Credits (Form 2329).
business tax, single business tax annual, and EFT Debit filers may add, change, or delete bank
flow through withholding payments may be paid account and routing number information by selecting
electronically. Manage My EFT Account from the Web payment
If you elect to voluntarily remit your sales and use taxes system or the appropriate option when calling the
by EFT, you will be required to electronically transmit automated payment system number (1-877-865-2860).
these taxes monthly to avoid late fees. Voluntary EFT 13. How far in advance may I complete my payment
tax payments not remitted monthly are subject to late data?
fees. EFT debit filers may make their payments up to
Additional information regarding voluntary EFT 90 days in advance of the settlement date for that
payments can be found on Questions and Answers transaction. EFT credit filers should consult their
About Paying Your Sales, Use, Withholding and financial institution for further instruction.
Michigan Business Taxes by Electronic Funds Transfer 14. What if I hire or change a payroll service?
(EFT) (Form 2437) available at www.michigan.gov/ To register or change a payroll service provider for
biztaxpayments. your account, submit a completed Payroll Service
9. Will registering to pay other business taxes by EFT Provider Combined Power of Attorney Authorization
eliminate the paper return requirement? and Corporate Officer Liability (COL) Certificate for
Once registered to pay your sales, use and withholding Business (Form 3683) found on Treasury’s Web site.
taxes electronically, you are no longer required to 15. A division of a corporation does not have as great
submit a Combined Return for Michigan Taxes a liability as the corporation itself. Is the division
(Form 160). The Annual Return for Sales, Use and required to file its withholding tax on an accelerated
Withholding Taxes (Form 165) is still required by basis?
February 28th of each year. Yes. The corporation is considered one legal entity,
10. Can I send a check and return? which includes all divisions.
No. Accelerated tax payments must be made by EFT. 16. How do I add an additional tax to be paid by EFT?
Accelerated payments not made by EFT are subject EFT debit filers should complete and return Form 4515
to penalty and interest. as instructed. EFT Credit filers should refer to Form
11.What if I pay more than one type of tax? 2329 for a listing of the tax type codes to use in the
A separate transmission must be made for each tax transmission of the new tax type.
type. You may not combine sales and use tax payments If you have questions concerning your account,
into one lump sum transmission. The following five- completion of the application, or transmission of
character tax codes should be used to complete your EFT payments, call the EFT Unit at (517) 636-6925.
transmission(s): You may send a fax to (517) 636-4356 or send
01100 Withholding - Employer and Retirement correspondence to:
04200 Sales Tax
04400 Use Tax on Sales and Rentals Michigan Department of Treasury
04500 Use Tax on Purchases Return Processing - EFT Unit
02355 Michigan Business Tax Extensions P.O. Box 30427
02655 Michigan Business Tax Annual Lansing, Michigan 48909
02670 Corporate Income Tax Annual
02170 Corporate Income Tax Estimate
02370 Corporate Income Tax Extensions
02010 Flow Through Withholding Corporation
Quarterly
02020 Flow Through Withholding Individual
Quarterly
02675 Flow Through Withholding Annual
12. What notification is needed if I change banks?
EFT Credit filers supply your new bank with

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