LAPEER MICHIGAN 
                                                                            
                                       WITHHOLDING TAX GUIDE 
                                                                            
WHO MUST WITHHOLD                                                                 FROM WHOM TO WITHHOLD 
Every employer is required to withhold who:                                       Employers are required to withhold from the following employees: 
 1) has a location in the city;                                                     1) All residents of the City of Lapeer whether or not they work 
 2)  is  doing  business  in  the  city  even  though  the  employer                   inside the city: 
      has no location in the city.                                                  2) All nonresidents of the City of Lapeer who have the City of 
                                                                                       Lapeer as their predominant place of employment. 
An  employer  is  defined  as  any,  “Individual,  partnership,                         
association,  corporation,  nonprofit  organization,  governmental                An  employee  is  anyone  from  whom  an  employer  withholds  for 
body or unit or agency, or any other entity whether or not taxable                either Federal income tax or social security tax. 
under  this  ordinance,  that  employs  one  or  more  persons  on  a              
salary,  bonus,  wage,  commission  or  other  basis,  whether  or  not           PREDOMINANT PLACE OF EMPLOYMENT 
such employer is engaged in business.”                                            Nonresidents of the City of Lapeer are subject to withholding only if 
                                                                                  the City of Lapeer is their predominant place of employment. 
Example: A construction firm from Ohio is doing work in the City of                
Lapeer.  Even though it has no City of Lapeer business location,                  The Ordinance defines predominant place of employment as “that 
the firm is required to withhold.                                                 city imposing a tax under a uniform city income tax ordinance other 
                                                                                  than the city of residence, in which the employee estimates he will 
The employer that has business locations in and out of the city is                earn  the  greatest  percentage  of  his  compensation  from  the 
required to withhold for all employees working in the City of Lapeer              employer, which percentage is 25% or more.” 
and from all City of Lapeer residents working outside the City.                    
                                                                                  Therefore, the City of Lapeer is a nonresident’s predominant place 
A nonprofit organization in the city is required to withhold from its             of employment if: 
employees (even though it is not engaging in business activity in                   1) The nonresident employee earns a greater percentage of 
the usual sense).                                                                      compensation  in  the  City  of  Lapeer  than  any  other 
                                                                                       Michigan  City  with  an  income  tax,  except  the  employee’s 
REGISTRATION                                                                           city of residence. 
Every employer required to withhold Lapeer City Income Tax must                     2) This  greater  percentage  constitutes  25%  or  more  of  the 
register  by  filing  its  Federal  Employer  Identification  Number  with             nonresident employee’s total compensation from you. 
the  City.    The  City  will  use  the  Federal  number  for  employer            
identification.                                                                   An  employee  can  have  only  one  predominant  place  of 
                                                                                  employment. 
Also required are:                                                                 
 1)   Complete name of the employer.                                              If a job is located in another city that levies an income tax and the 
 2)   The correct mailing address for forms and correspondence.                   individual  is  a  resident  of  the  City  of  Lapeer,  the  employer  may 
 3)   The approximate number of employees                                         withhold separately for both the City of Lapeer and that city where 
 4)   The  date  the  employer  started  business  or  first  became              the job is located.  The rate to be withheld for the City of Lapeer 
      subject to the Lapeer Income tax withholding.                               would be reduced by the amount withheld for the city where the job 
 5)   The signature and title of the responsible person.                          is located. The rate adjustment can be no more than .5%.  The City 
                                                                                  of Lapeer resident will still pay a total of 1.0 %, which may include 
The employer must submit their information to the City of Lapeer at               .5%  withheld  to  this  city  and  .5%  withheld  to  another  city.  The 
https://www.municonnect.com/lapeer/login_biz.aspx  by  clicking  on               resident  would  need  to  file  a  nonresident  annual  return  for  the 
SS-4 towards top of page.                                                         other city to be able to claim the credit paid to another city on their 
                                                                                  resident City of Lapeer return.  
If a new employer has not received a Federal number, the city will                 
assign  a  temporary  number.    This  number  will  be  used  until  the          
Federal  number  is  assigned,  at  which  time  the  employer  must              LW-4 FORMS REQUIRED 
immediately advise the city.                                                      To  determine  each  employee’s  place  of  residence  and 
                                                                                  predominant place of employment each employee must fill out an 
WITHHOLDING RATES                                                                 LW-4 Employee’s Withholding Certificate.  Only one Form LW-4 is 
There are two withholding rates:                                                  required  for  each  employee  even  though  the  employee  may  be 
                                                                                  subject to withholding for two cities. 
The 1% rate is for:                                                                 
 1. City of Lapeer residents working in the City of Lapeer;                       When properly filled out, the Form LW-4 will give the employee’s 
 2. City of Lapeer residents working in another City that does                    city of residence and the two cities, or communities, in which the 
      not have a local income tax.                                                employee  earns  the  greatest  percentage  of  his  compensation.  
                                                                                  Most employees will only have one city of employment. They will 
The .5% rate is for                                                               circle 100% as the percentage of compensation earned in that city. 
 1. Nonresidents of the City of Lapeer  working in the City of                     
      Lapeer.                                                                     The Form LW-4 is also the employee’s statement of the number of 
 2. City of Lapeer residents working in another City that also                    exemptions claimed for self, spouse and dependents.   
      has a local income tax.                                                      
                                                                                  Employers  withholding  for  the  City  of  Lapeer  may  obtain  any 
The  withholding  rates  are  applied  after  allowing  for  the                  quantity of LW-4 forms as needed from the city free of charge.  
exemptions claimed by the employee. 
 
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They are also available on the City of Lapeer website at:                        percent from the employee’s total compensation without benefit of 
https://www.ci.lapeer.mi.us/forms/income_tax.php                                 exemptions. 
                                                                                  
Do not mail LW-4 forms to the city.  These are for the employer’s                 
use and must be retained by the employer.                                        CALCULATING THE AMOUNT TO WITHHOLD 
                                                                                 The  Lapeer  City  Income  Tax  is  a  straight  percentage  on 
FROM WHAT PAY TO WITHHOLD                                                        compensation after an adjustment for personal exemptions.  Each 
The  Ordinance  requires  that  the  City  of  Lapeer  income  tax  be           exemption is valued at $600 per year.  For various pay periods the 
withheld  from  all  compensation  (salaries,  wages,  commissions,              exemption translates to the amounts in the table below. 
bonuses, etc.) for services rendered or work performed by City of                 
Lapeer residents, regardless of whether such services or work are                              Weekly           $11.54 
performed in or out of the city.  Withholding is also required from all                        Bi-weekly        $23.08 
compensation for services rendered or work performed in the city                               Semi-monthly     $25.00 
by  nonresidents  where  Lapeer  is  the  predominant  place  of                               Monthly          $50.00 
employment. 
                                                                                               Per Diem         $1.64 
Vacation,  holiday,  sick  pay  and  bonus  pay  to  nonresidents  who            
perform part but not all of the work or services in the City of Lapeer           The amounts in the table above are used to adjust gross pay for 
are taxable in the same ratio as their normal activities.                        payroll withholding.  The adjustment is the number of exemptions 
                                                                                 on form LW-4 times the exemption value.  On a weekly payroll for 
Example: A  nonresident  employee,  who  is  subject to  withholding             a wage earner with 3 exemptions the adjustment is 3 times $11.54 
on 60% of their earnings, because 60% of their work is performed                 = $34.62. 
in the City of Lapeer, is also subject to withholding on 60% of their             
vacation,  holiday,  bonus  and  salary  or  wage  payments  during              EXAMPLE:  Gross pay is $200.00 per week and the wage earner 
periods of sickness.                                                             lives  in  Lapeer  and  claims  3  exemptions.    The  amount  taxed  is 
                                                                                 $200.00  minus  $34.62  =  $165.38.  Apply  the  1.0%  resident  rate 
PAYMENTS NOT SUBJECT TO WITHHOLDING                                              (.01 times $165.38 = $1.65).  Withhold $1.65 from the employee 
Withholding does not apply to:                                                   for the week. 
 1) Wages paid domestic help;                                                     
 2) Fees paid independent contractors who are not employees                      The above method is applicable to all City of Lapeer withholding 
    of the payer.                                                                for regular payrolls.   
 3) Payments to a nonresident employee for work or services                       
    performed in the City of  Lapeer, if the predominant place                   This  booklet contains tables  for weekly,  bi-weekly,  semi-monthly, 
    of employment is not Lapeer;                                                 monthly and per diem periods. 
 4) Payment  to  a  nonresident  employee  for  work  or  services                
    rendered outside the city;                                                   WITHHOLDING REQUIRED FOR RESIDENTS 
 5) Pensions  and  annuities,  workmen’s  compensation  and                      The  withholding  rate  for  City  of  Lapeer  residents  not  subject  to 
    similar benefits;                                                            withholding in any other city is one percent (1%).  This is applied to 
 6) Amounts  paid  for  sickness,  personal  injuries  or  disability            the total compensation after allowance for exemptions. 
    (so  called  excludable  sick-pay)  to  the  same  extent  that               
    these amounts are exempt from the federal income tax, but                    If  a  resident  of  the  City  of  Lapeer’s  predominant  place  of 
    the employer must withhold from such payments if federal                     employment is in another taxing city the employer would withhold 
    tax is withheld;                                                             at the nonresident rate of that taxing city. 
 7) Amounts  paid  to  an  employee  as  reimbursement  for                       
    expenses incurred in performing services.                                    WITHHOLDING REQUIRED ON NONRESIDENTS 
                                                                                 Nonresidents, with their predominant place of employment in the 
Individuals with income as described above in items 1, 2, and 3 are              City of Lapeer, have a withholding rate of .5% (multiply by .005). 
not  subject  to  withholding  on  such  income,  however  they  are              
required to file an annual return to report such income if they are              DUE DATES 
City of Lapeer residents, or are nonresidents earning such income                L-941payments  are  due  on  or  before  the  last  day  of  the  month 
in the City of Lapeer                                                            following the close of each calendar quarter (by April 30, July 31, 
                                                                                 October 31, and January 31).   
EXEMPTIONS                                                                        
Exemptions  of  $600  per  year  are  allowed  for  the  employee  and           The City of Lapeer does not require monthly withholding payments 
spouse.  Additional exemptions are allowed if either the employee                but  you  may  make  monthly  payments  if  you  so  desire.  Monthly 
or  spouse  is  65  or  over,  blind  or  handicapped  according  to  the        payment coupons are available on our on-line withholding tool. 
federal rule as described in MCL141.631 of PA 284 of 1964.                        
                                                                                 REPORTING AND PAYING AMOUNTS WITHHELD 
Individuals who may be claimed as an exemption on the individual                  
return  of  another  may  still  have  a  personal  exemption  for               All  employers  are  required  to  use  our  online  withholding  tool  at: 
themselves (this is different from the federal rule).                            https://www.municonnect.com/Lapeer/login_biz.aspx 
                                                                                  
Exemptions for dependents other than the ones referred to above                  If  you  need  to  be  assigned  a  PIN,  please  contact  our  office  at 
are governed by the applicable federal rules.                                    incometax@ci.lapeer.mi.us or 810-667-7155 
                                                                                  
The withholding may be determined by either a direct percentage                  The  pre-printed  L-941  and  LW-3  forms  available  on  this  website 
computation or by referring to the tables included  in this booklet.             must  be  used  whenever  possible.    If  the  preprinted  data  is 
Use the number of exemptions on the completed LW-4 Employee’s                    incorrect,  mark  through  the  errors  and  write  in  the  correct 
Withholding Certificate.  Employees should be instructed to claim                information.  Always  be  sure  the  correct  withholding  period  is 
their actual and true number of exemptions.                                      entered on the deposit form. 
                                                                                  
If  an  employee  fails  or  refuses  to  file  a  form  LW-4  with  the         Check/Money Order Payments:  Form L-941 must be submitted 
employer  the  ordinance  requires  the  employer  to  withhold  one             with  payments  made  by  check  or  cash.  If  payments  have  been 

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made monthly  the  3  rd monthly  payment  of  each  quarter  must  be               An LW-3 Annual Reconciliation form must accompany the W-2 or 
submitted on Form L-941.                                                             LW-2  forms  when  they  are  filed  with  the  City  of  Lapeer.    These 
                                                                                     forms are available from our on-line withholding tool or the City of 
EFT Payments:  EFT payments are set-up through the online                            Lapeer website or by calling the City of Lapeer income tax office. 
withholding tool.  Form L-941 coupons are not required when                           
making EFT payments.                                                                           All returns and remittances are to be mailed to: 
                                                                                                   City of Lapeer Income Tax Department 
ACH Credit Payments:     Contact the Lapeer City Income Tax office                                        576 Liberty Park 
for information to set-up ACH Credit Payments.  Form L-941                                                Lapeer, MI  48446. 
coupons are not required when making ACH credit payments.                             
                                                                                      
Payments made by check or money order should be sent with                            If  an  employer  wishes  to  submit  a  listing  or  magnetic  media  to 
the appropriate L-941 payment coupon to:                                             Lapeer,  in  lieu  of  W-2’s  or  LW-2’s,  contact  the  City  of  Lapeer 
                                                                                     Income  Tax  Department  to  get  the  proper  file  formatting 
                   Lapeer City Income Tax                                            instructions. 
                         576 Liberty Park                                             
                         Lapeer, MI  48446                                           Any employer who goes out of business or permanently ceases to 
                                                                                     be an employer must file LW-2’s and an LW-3 by the date his final 
              MAKE CHECKS PAYABLE TO:                                                withholding payment is due. 
                      Lapeer City Treasurer                                           
                                                                                     ANY FURTHER QUESTIONS 
CORRECTION OF ERRORS                                                                 The  City  Commission  has  adopted  Rules  and  Regulations  which 
Employer’s errors of over or under withholding should be corrected                   supplement the Income Tax Ordinance.  Copies of the Ordinance 
as follows:                                                                          and Rules and Regulations may be obtained on request.  In case 
 1)     If  the  error  is  discovered  in  the  same  quarter  in  which  it        of variance between this booklet and the Ordinance, the Ordinance 
        was  made,  the  employer  shall  make  the  necessary                       prevails. 
        adjustment on a subsequent payment.  Only the corrected                       
        amount  should  be  included  in  the  quarterly  return  to  the            Questions and requests for forms should be addressed to:  
        city.                                                                        City of Lapeer Income Tax Department 
 2)     If  the  error  is  discovered  in  a  subsequent  quarter  of  the          576 Liberty Park 
        same  calendar  year,  the  employer  shall  make  the                       Lapeer, MI  48446.   
        necessary  adjustment  on  a  subsequent  payment  and                        
        report it as an adjustment on the next quarterly return.                     Telephone number is (810) 667-7155. 
 3)     If the error is discovered in the following calendar year, the                
        employer  shall  notify  the  City  of  Lapeer  Income  Tax                   
        Department of the error.                                                     INTERNET ACCESS TO FORMS AND INSTRUCTIONS 
                                                                                     City Income tax forms and instructions are available to download 
If an error is discovered in the withholding of a former employee,                   off  the  Internet.  The  City  of  Lapeer  website  address  is: 
notify the City of Lapeer Income Tax Department.                                     www.ci.lapeer.mi.us. 
 
ANNUAL REPORTING 
An  annual  report  must  be  made  on  federal  form  W-2  or  City  of 
Lapeer  form  LW-2  for  each  employee  subject  to  City  of  Lapeer 
income  tax  whether  the  tax  was withheld  or  not.   The W-2 must 
give the following information: 
 1)     The  name,  address,  and  federal  identification  number  of 
        the withholding employer. 
 2)     The  name,  home  address  and  social  security  number  of 
        the employee. 
 3)     The  total  gross  wages  paid  to  the  employee  for  the  year 
        even  if  the  total  wages  did  not  have  City  of  Lapeer  tax 
        withheld. 
 4)     The  total  City  of  Lapeer  tax  withheld  for  the  year.    The 
        amount  of  tax  withheld  must  be  clearly  labeled  as  being 
        City  of  Lapeer  tax  withheld,  and  the  label must  be  in  the 
        appropriate  box  on  the  withholding  statement.    Failure  to 
        properly  and  clearly  label  the  City  of  Lapeer  tax  withheld 
        makes  the  form  unacceptable.    Improperly  labeled  forms 
        do not satisfy the withholding tax reporting requirements of 
        the City of Lapeer Income Tax Ordinance, and will not be 
        accepted  as  the  basis  for  a  refund  when  attached  to  an 
        individual city income tax return. 
 
The City of Lapeer will furnish LW-2 forms.  They may be obtained 
from the City of Lapeer Income Tax Department.  The LW-2 is a 
four-part  form  comparable  to  the  federal  W-2  form.    Employers 
wishing to purchase one of the commercially available W-2 forms 
in  order  to  combine  the  city,  state  and  federal  reporting  in  one 
operation are permitted to do so, providing one copy is submitted 
to the City of Lapeer by the employer, and one is submitted by the 
employee  with the  employee’s  annual  City  of  Lapeer  Income  tax 
return. 
 
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