Accounting Setup for Startups

TABLE OF CONTENTS
Part 3

CHAPTER 1: ACCOUNTING AND BOOKKEEPING

Chart of Accounts ........................................................................................................... 1
Cash or Accrual Accounting ........................................................................................... 2
Accounting Records and Record-Keeping ..................................................................... 3
A Word About Computers .............................................................................................. 3
Internal Control ............................................................................................................... 4
Illustrative Chart of Accounts.......................................................................................... 5

CHAPTER 2: PAYROLL TAXES

Available Publications .................................................................................................... 7
Tax Deposit Requirements ............................................................................................. 7
Federal Unemployment Taxes ....................................................................................... 8
Michigan Unemployment Taxes ..................................................................................... 8
Supplemental Wages ..................................................................................................... 8
Fringe Benefits ............................................................................................................... 9
Other Tax Requirements .............................................................................................. 10
Tax Rates ..................................................................................................................... 11

CHAPTER 3: INCOME TAXES

Income Tax Forms ....................................................................................................... 12
Estimated Tax Payments ............................................................................................. 13
Due Dates .................................................................................................................... 13
Extensions .................................................................................................................... 14
First Corporate Return.................................................................................................. 14
Tax Planning ................................................................................................................ 14
State Taxes .................................................................................................................. 15
Conclusion.................................................................................................................... 15

EXHIBITS

OFFICE LOCATIONS ............................................................................................................. 16

CHAPTER 1

ACCOUNTING AND BOOKKEEPING

Most operators of a new and growing business have a flair for the environment in
which the business operates. They may be a great salesperson, an outstanding
mechanic, carpenter, lawyer, or inventor. Unfortunately most people don’t like to
keep the books. As an owner of a business, you must remember that your
company’s books and financial statements represent a score sheet which tells
how you are progressing, as well as an early warning system which lets you
know when and why the business may be going amiss. Financial statements,
and the underlying records, will provide the basis for many decisions made by
outsiders such as banks, landlords, potential investors, and trade creditors as
well as taxing authorities and other governing bodies. The necessity for good,
well-organized financial records cannot be over-emphasized. One of the
greatest mistakes made by owners of small businesses is not keeping good
financial records and making improper or poor business decisions based on
inadequate information.

Quality financial information does not necessarily translate into complicated
bookkeeping or accounting systems. Far too often owners of businesses
become overwhelmed by their accounting system to the point where it is of no
use to them. An accounting or bookkeeping system is like any tool used in your
business, it needs to be sophisticated enough to provide the information you
need to run your business and simple enough for you to run it (or supervise the
bookkeeper). Questions you should ask in developing an accounting and
financial reporting system are:

1. Who will be the users of the financial information?

2. What questions do I need answered to manage the business?

3. What questions should be answered for government or regulatory taxing
authorities?

As your business grows, you should work closely with Yeo & Yeo CPA’s to
ensure that your accounting system is providing you with appropriate information.

Chart of Accounts

The basic road map into any accounting system is the chart of accounts. It is this
chart which helps establish the information which will be captured by your
accounting system, and what information will subsequently be readily retrievable
by the system. This tool, like the rest of the accounting systems, needs to be
dynamic and should grow as the size and needs of your business changes.

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To help establish a good working chart of accounts, you need to answer some
questions, in conjunction with your accountant, as to how your business will
operate, and what is important to you. Some of these considerations might be:

1. Will your business have inventory to account for? If so, will it be purchased in
final form or will there be production costs?

2. Are fixed assets a significant portion of your business?

3. Will you sell only one product or service or will there be several types of
business?

4. Will you have accounts receivable from customers which you will need to
track?

5. Are you going to sell in only one location or will you do business in several
locations?

6. Are the products you sell subject to sales tax?

7. Do you need to track costs by department?

8. What type of government controls or regulatory reporting are you subject to?

Each one of these questions can have several answers and will probably
generate more questions. Each answer will have an impact on how the chart of
accounts is structured. It may seem that developing a chart of accounts is not
particularly high on your list of things to do as you start a new business; however,
the amount of time and money which a well organized accounting system may
save you can be significant as the need to generate information for various
purposes increases. An example of a basic chart of accounts follows this
section.

Cash or Accrual Accounting

One of the decisions to be made, as you start a business, is whether to keep
your records on a cash or accrual basis of accounting. The cash basis of
accounting has the advantage of simplicity and almost everyone understands it.
Under the cash basis of accounting you record sales when you receive the
money and account for expenses when you pay the bills. The increase in the
money in “the cigar box” at the end of the month is how much you made.

Unfortunately, as we all know, the business world is not always so easy. Sales
are made to customers and you sometimes must extend credit. Your business
will incur liabilities which are due even though you may not have received the
invoice or have the cash available to pay them.

Under the accrual basis of accounting, revenue is recognized when earned and
expenses are recognized when incurred. Most users of financial statements
such as bankers and investors are accustomed to accrual basis statements
prepared under generally accepted accounting principles. Once you become
familiar with them, they provide a much better measuring device for your
business operations than cash basis statements.

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Whether you use the cash or accrual basis, it is possible to keep books for
income tax purposes on a different basis than for financial statements. It may be
more advantageous (less tax) for you to do so. Your accountant can advise you
on the advantages and feasibility of doing this in your particular circumstances.

Accounting Records and Record-Keeping

Another question which the owner of a business must answer is “Who will keep
the books of the business?” Will you do it yourself, will the receptionist or a
secretary double as a part-time bookkeeper, will you have a bookkeeper that
comes in periodically, or will the volume of activity be such that a full-time
bookkeeper will be required?

Very often the owners of a business decide to keep the books themselves and
underestimate the commitment they have made to other phases of the operation
and the time required to maintain a good set of financial records and books of
account. As a consequence, the record keeping is often low priority and must be
caught up later. This approach, though rarely planned, can require a substantial
expenditure of time and money. It is important for the owners of a business to
maintain control and stay involved in the financial operations of the enterprise;
this can be achieved by maintaining close control over the check signing function
and scrutinizing certain records. Your company’s accountant can help develop a
good program of record keeping duties for you, your employees and any outside
bookkeepers you may engage.

A Word About Computers

The computer is probably the single most valuable invention for bookkeeping and
accounting since the advent of double entry bookkeeping. If your business
includes any of the following, then a computer would be a useful tool in your
business:

1. Many repetitious or routine tasks,

2. Lots of paperwork; i.e., payroll checks, invoices, purchase orders, mailing
labels,

3. Lots of general correspondence, or

4. Written reports, contracts, newsletters, catalogues or brochures.

Your accountant knows both your business and computers so he or she can take
much of the confusion out of the selection process by assisting you in the
purchase and installation of your computer and software.

There are a number of very good, easy to use accounting software systems
which are commercially available, but none of them will solve the problems of
inaccurate or poor quality financial records. All they will do is generate bad
information faster. This is one of the reasons that the computer has also
probably caused more headaches for the owners of modern businesses than any
other single cause. If you want to use a computer based accounting package,

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either in your own business, with a service bureau or through your accountant, it
is imperative that you generate accurate information to be entered into the
system.

The real value of the computer becomes apparent once it is running smoothly in
your business. Your accountant can then function in the capacity for which
he/she was trained not as a “number cruncher”, but as your business advisor,
consultant, and strategist. Both of you can focus not on producing reports for
various regulatory agencies but on analyzing your business to make it more
profitable.

Yeo & Yeo is not only an accounting firm, we also have a Computer Consulting
division. The consultants in this area can help you with computer problems as
they arise, teach you about different programs and how to use them in our
computer training classes held at our Saginaw office, along with a number of
other computer services.

Internal Control

What is internal control? It is the system of checks and balances within a
business enterprise which helps to ensure that the company’s assets are
properly safeguarded and that the financial information produced by the company
is accurate and reliable. When you’re operating as a “one person shop” or at
least handling all of the company’s financial transactions, maintaining good
internal accounting control is relatively straightforward.

However, when your company grows to the size where you must delegate some
of the functions, it becomes more difficult to ensure that all the transactions are
being accounted for properly.

No matter the size of your business, you should always be able to answer “yes”
to the following questions:

1. When my company provides goods or services to our customers, am I sure
that the sale is recorded and the revenue is recorded in accounts receivable
or the cash is collected?

2. When cash is expended by my company, am I sure we received goods or
services?

The methods used to ensure that these two questions can be answered
affirmatively will vary widely. The solution in your particular instance may be as
simple as numbering the sales invoices and being sure ALL INVOICES ARE
ACCOUNTED FOR or reviewing all invoices and timecards before signing
company checks. These are fundamentals in a well run business. As the
company grows, you will need to consider concepts such as segregation of
authority as well as employee fidelity bonds or controlled access storerooms.
These are essential stepping stones to maintaining good control in your
business.

No matter what the size of your enterprise, you should consider controlling your
business and safeguarding hard earned assets as a priority from the outset.

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Illustrative Chart of Accounts

Current Assets:

1000 Cash
1120 Accounts Receivable
1125 Allowance for Uncollectibles
1130 Inventory
1140 Prepaid Rent
1150 Prepaid Expenses

Fixed Assets:

1310 Equipment
1320 Furniture and Fixtures
1330 Automobile
1340 Leasehold Improvements
1350 Accumulated Depreciation

Intangible Assets:

1410 Goodwill
1420 Organizational Costs
1430 Accumulated Amortization
1440 Deposits

Current Liabilities:

2100 Notes Payable
2110 Accounts Payable
2120 Interest Payable
2130 Salaries Payable
2140 Income Tax Payable
2150 Sales Tax Payable
2160 Federal Withholding and FICA Tax Payable
2170 State Withholding Tax Payable
2180 Federal Unemployment Tax Payable
2190 State Unemployment Tax Payable
2200 Advances from Customers

Long-Term Liabilities:

2410 Mortgage Payable
2420 Credit Line Payable

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Stockholder’s Equity:

3510 Capital Stock
3650 Retained Earnings

Revenue:

4000 Sales
4100 Returns and Allowances

Cost of Goods Sold:

5100 Purchases
5110 Freight
5120 Direct Labor

Expenses:

6010 Advertising
6020 Bank Charges
6030 Contract Labor
6040 Depreciation and Amortization
6050 Dues and Subscriptions
6060 Employee Benefits
6070 Insurance
6080 Interest Expense
6090 Janitorial
6100 Legal and Professional Fees
6110 Meals and Entertainment
6120 Office Expense
6130 Payroll
6140 Postage and Shipping
6150 Rent
6160 Repairs and Maintenance
6170 Supplies
6180 Taxes – Income
6190 Taxes – Payroll
6200 Taxes – Other
6210 Telephone
6220 Travel
6230 Utilities

Other Revenue:

7010 Interest Income
7020 Other Income

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CHAPTER 2

PAYROLL TAXES

Irrespective of the form of business in which you operate, if you are going to have
employees, then you will have to contend with payroll taxes. The brief summary
which follows will give you some guidance in the rules and regulations of the
various taxing authorities.

Available Publications

Circular E, Publication 15, Employer’s Tax Guide, covers the payroll tax reporting
and deposit requirements and can be obtained through the local office of the
Internal Revenue Service.

You can obtain a Circular E in one of the following three ways:

Visiting the IRS website www.irs.gov,
Calling 1-800-TAX-FORM, or
Visiting your local IRS office.

Tax Deposit Requirements

Federal withheld income and FICA taxes (employer and employee portion) now
must adhere to new rules issued for 1993 and subsequent tax years. A lookback
period of July 1 to June 30 has been established for ongoing businesses and a
corresponding period will be used for subsequent years. New businesses will
choose deposit rules based upon anticipated tax liability.

1. Monthly Depositor. An employer that reported employment taxes of
$50,000 or less during the lookback period generally must make only monthly
deposits for the entire calendar year. The deposit for a month must be made
on or before the 15th day of the following month.
2. Semi-Weekly Wednesday/Friday Depositor. An employer that reported
employment taxes of more than $50,000 during the lookback period is a semi-
weekly depositor for the entire year. Such employers must make deposits on
or before Wednesdays or Fridays depending on the timing of their payrolls.
Specifically, employment taxes from payments to employees made on
Wednesdays, Thursdays or Fridays must be deposited on or before the
following Wednesday. Taxes from Saturday, Sunday, Monday or Tuesday
payments to employees must be deposited by the following Friday.

3. Nonbanking Days. Semi-weekly depositors will always have at least three
banking days to make a deposit. If any of the three weekdays following the
close of a semi-weekly period is a bank holiday, the employer will have an
additional banking day to make the deposit. For example, if Monday is a bank
holiday, deposits from the prior week Wednesday through Friday period can
be made by the following Thursday, rather than by the regular Wednesday

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deposit day. In addition, Saturdays and Sundays are treated as nonbanking
days.

4. One Day Depositor. If a monthly or semi-weekly depositor accumulates
employment taxes of $100,000 or more during a deposit period (monthly or
semi-weekly), it must deposit the taxes by the next banking day. This rule
overrides the normal rules for determining deposit dates discussed above. A
monthly depositor that must make a one day deposit under this rule
immediately becomes a semi-weekly depositor for the rest of the calendar
year and the following year.

Federal Unemployment Taxes

To determine your quarterly liability for FUTA, multiply by .011 that part of the
first $7,000 of each employee’s annual wages that you paid during the quarter. If
the resultant liability for all employees for the quarter is $500 or less, there is no
requirement to deposit it currently, you merely add it to your liability for the
following quarter.

If your liability for any calendar quarter (plus any undeposited taxes for an earlier
quarter) is more than $500, you are required to deposit the taxes with a Federal
tax deposit coupon, at an authorized financial institution or Federal Reserve Bank
by the end of the following month.

If the tax reported on your annual Federal Unemployment Tax Return, Form 940,
less deposits for the year:

1. Is more than $500, you must deposit all of the tax by January 31st, or

2. Is less than $500, you may pay the taxes when you file Form 940.

Michigan Unemployment Taxes

To determine your quarterly liability for the Unemployment Insurance Agency,
multiply by your tax rate (usually 2.7% for startups) that part of the first $9,000 of
each employee’s annual wages that you paid during the quarter.
You are required to pay the taxes with a completed form UIA 1020 by the 25th of
the month following the end of every quarter.
You are also required to file form UIA 1017, listing the gross compensation paid
to each employee for the quarter.

Supplemental Wages

If supplemental wages – such as bonuses, commissions, overtime pay – are
included in the same payment with regular wages, tax to be withheld is
determined as if the total of the supplemental and regular wages were a single
payment for the regular payroll period.

If supplemental wages are not paid with the same payment as the regular wages,
the employer may:

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1. Withhold at a flat rate of 25% for Federal and 4.35% for Michigan, or

2. Combine the supplemental wage with the last regular wage, determine the tax
on the total wage, and subtract the amounts already withheld on the regular
wage payment.

Fringe Benefits

Gross income does not include fringe benefits that qualify for exclusion, as
described in the categories listed below. Fringe benefits that qualify for the
exclusion are exempt from income tax and Social Security tax withholding (FICA
and payment of Federal Unemployment Tax (FUTA)). Conversely, benefits,
which do not qualify, are subject to these taxes. An example of a common non-
qualifying benefit subject to tax is the automobile allowance.

No-additional-cost service. This is a service provided to an employee that is
excludable if the service is offered for sale to the public in the ordinary course of
the line of business of the employer in which the employee is working and the
employer does not incur substantial additional cost. For example, employers
who furnish airline travel or hotel rooms to employees working in these lines of
businesses in such a way that the nonemployee customers are not displaced and
they incur no substantial additional cost in providing those services to the
employees, the cost is excludable from the employee’s gross income.

Qualified employee discount. Any employee discount is an excludable
qualified employee discount if: (1) in the case of property, it does not exceed the
gross-profit percentage of the price at which the property is being offered to
customers; (2) in the case of service, it does not exceed 20% of the price at
which the service is being offered.

Working condition fringe. Any employer-provided property or services are
excludable benefits to the extent that they are deductible as ordinary and
necessary business expense had the employee paid for them. Under certain
conditions, the fair market value of a qualified automobile demonstration used by
a full time auto salesperson is an excludable working condition fringe.

De minimis fringe. Property or services not otherwise tax-free are excludable if
their value is so small as to make accounting unreasonable or administratively
impractical. An operation of any eating facility for employees is an excludable de
minimis fringe if it is located on or near the employer’s business premises and
the revenue derived normally equals or exceeds the direct operating costs of the
facility.

Qualified Moving Expenses Reimbursement. An employee may exclude from
gross income an amount received from an employer for payment of qualified
moving expenses.

Transportation Fringe Benefits. Beginning in 1995, an employee may exclude
from gross income certain maximum amounts received from an employer as
reimbursements for transit passes, vanpooling expenses, and qualified parking
expenses.

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Other Tax Requirements

Whenever a wage payment is made, the employer must provide the employee
with a statement of the gross wages and specific deductions (if any). Use the
Form W-4 submitted by the employee and the tax tables provided in the
employer’s tax guides to determine the correct income tax to withhold. If the
employee fails to submit a Form W-4, the employer must withhold at the rate
applicable to a single person who has no withholding exemptions.

An employer must also complete a Form I-9 on each employee and obtain the
necessary citizenship or other employment eligibility status verification.

When making a reimbursement or payment of moving expenses to or for an
employee, the employer must complete and furnish the employee with a
Form 4782 for each move.

The employer must also furnish a Form W-2 to each employee showing
remuneration and withheld taxes for each calendar year. Flat rate expense
account allowance, disability insurance paid by the employer, and moving
expense reimbursements are among the items to be included as other
compensation on a Form W-2. Upon request, a Form W-2 must be furnished to
a terminated employee within 30 days after the request or the final wage
payment whichever is later. All other Forms W-2 should be given to the
employees by January 31st, of the following year.

The payroll tax requirements and the work related to compliance are quite
cumbersome and complicated. Once a business employs more than a few
people, we recommend that a qualified payroll service be used because it has
generally been our experience that the cost of the service far outweighs the
personnel and management time required to operate the payroll system in
house.

Yeo & Yeo has payroll specialists who can assist you in doing payroll for your
business and preparing payroll taxes.

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Tax Rates

The following charts contain tax rates and the taxable wage basis for employers
and employees. The limits and maximum contributions for 2009 given are per
employee.

Social Security Tax (FICA)

Medicare Soc. Sec. Total

Tax rate for employer 1.45% 6.2% 7.65%

Tax rate for employee 1.45% 6.2% 7.65%

On wages not to exceed No Limit $106,800.00

Maximum employer contribution No Limit $ 6,621.60

Maximum employee contribution No Limit $ 6,621.60

Federal Unemployment Tax (FUTA)

Federal Unemployment Tax (employer 6.2%
only): Gross Federal tax rate

Less credit for Michigan UIA 5.1%
(If timely payment is made)
Net Federal tax rate 1.1%

On Wages not to exceed $ 7,000.00

Maximum employer contribution (per $ 77.00
employee)

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CHAPTER 3

INCOME TAXES

Eventually you will have to deal with income taxes. The income tax laws are
extensive and can be confusing for an individual starting a business. This
chapter does not cover all the tax ramifications of a new business; however, it
provides some guidance on complying with the laws. A qualified CPA or tax
attorney should be consulted when you are dealing with income taxes. Income
taxes have a direct result and a potentially significant impact on the cash flow of
your business.

Income Tax Forms

Each type of legal entity is required to file a different type of income tax form.

Sole Proprietorship. A sole proprietorship is considered to be a component of
the individual’s personal tax situation. The tax form required is the Schedule-C
which is included with the owner’s Form 1040. In addition, if the business has
net taxable income, then a Schedule SE must be prepared to determine the
amount of self-employment tax that is due. Michigan follows these same rules
with the exception of the self-employment tax which is not levied under the
Michigan tax laws.

Partnership. A partnership is not a taxable entity at the federal level. It is,
however, a taxable entity at the state level and is required to file Michigan
Business Tax Form 4567. At the federal level, a partnership is treated as a
conduit through which taxable income is passed to the individual partners for
inclusion in their respective tax returns. The partnership is required to file
Federal Form 1065. No tax is due with the Federal Form 1065. However,
included with the forms is a schedule K-1 which lists the various items of income
and credits to be included on the individual partner’s federal and state returns.

Corporation. A corporation is considered a taxable entity and is required to file
a Federal Form 1120 and Michigan Business Tax Form 4567. An example of a
properly filled out Form 1120 and Michigan Business Tax Form 4567 is in the
Exhibit Section.

S Corporation. An S Corporation is a type of corporation that is specially
treated under the tax laws. The government taxes this type of entity in the same
manner as a partnership, with certain exceptions. The tax forms required are
Federal Form 1120S and Michigan Business Tax Form 4567.

Limited Liability Company. This is a form of business organization and if
properly structured, is treated as a partnership for Federal income tax and
Michigan Business Tax purposes.

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Estimated Tax Payments

In addition to the regular tax forms the law requires that if an estimate of the tax
is not properly prepaid on a quarterly basis, a non-deductible underpayment
penalty will be levied. Since an estimate is based on forecasting the future, and
liable to human error, the tax laws provide two safe-harbors to avoid the penalty
for underpayment. If your payments for each quarter equal the lesser of 110% of
the prior year’s tax or 100% of the current year’s tax, then the penalty can be
avoided. Estimates are filed using the following forms:

Corporate Federal tax deposit Form 8109 deposited with your bank.
Michigan Business Tax Form 4548 or deposited through a
phone call to EFT system.

Individual Federal Form 1040-ES.
Michigan Form 1040-ES.

For the State of Michigan, no penalties and interest will be charged if timely
estimated payments equal at least 85% of your current year liability and the
amount of each payment approximates the tax liability for the period. If prior
year’s tax is $20,000 or less, the estimated tax may be based on the prior year’s
amount in four equal payments, the sum of which equals the previous year’s tax
liability.

Due Dates

The due dates of the various Federal and Michigan forms are:

Corporate Federal Form 1120 is due the 15th day of the 3rd
month after the end of the tax year. The Federal tax
deposit Form 8109 is due the 15th day of the 4th, 6th,
9th, and 12th months of the tax year.

Partnership Federal Form 1065 is due the 15th day of the 4th
month after the end of the tax year (April 15th for most
partnerships).

S Corporation Federal Form 1120S is due the 15th day of the 3rd
month after the end of the tax year. Federal tax
deposit Form 8109 is due the 15th day of the 4th, 6th,
9th, and 12th months of the tax year.

Sole Proprietorship Federal Form 1040 is due April 15th. Estimated tax
payment Forms (Federal Form 1040-ES) are due
quarterly on April 15th, June 15th, September 15th, and
January 15th.

Limited Liability
Company May be classified as a partnership or corporation for
Federal income tax purposes. Filing dates also vary
by state.

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All business types are required to file a Michigan Business Tax Return. The
estimates for the Michigan Business Taxes are due the 15st of the 4th, 7th, 10th
and 13th months of the business calendar year.

Extensions

The business owner may request an extension of time to file the tax returns.
However, these extensions do not extend the time for paying the tax.

First Corporate Return

The first tax return a corporation files is very important. As part of that return
elections are made which will dictate the way the corporation is taxed for many
years to come. Some of the more significant elections that may need
consideration are outlined below:

1. Election to capitalize and amortize costs incurred to organize the business.
These can be legal, accounting or similar fees paid to commence operations.
Such costs are not normally considered expenses of the corporation and are
not deductible unless this election is made.

2. Election to accrue vacation pay earned but not taken by employees at the end
of the tax year. Without this election, vacation pay is not deductible until the
year it is taken.

The elections discussed above are only a few of those that may need to be
considered in an initial return. A qualified tax practitioner can help plan how best
to utilize elections to take advantage of some of the following provisions of the
Federal and Michigan tax laws including:

A. Net-operating loss carryovers
B. Research and development tax credits
C. Business energy tax credits
D. Michigan tax credits

Tax Planning

Proper tax planning is essential in order to make the most of the income tax laws.
You will probably need to develop a relationship with a qualified professional who
has experience with the taxation of your type of business. Tax planning is not a
one-time shot right before the return is due. Tax planning is a year-round
endeavor requiring communication on both sides – you and your CPA. Proper
planning ensures that there are no surprises when the return is filed.

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State Taxes

If your company will be doing business in more than one state, it is essential that
you familiarize yourself with the tax laws and filing requirements of those states.
Each state has its own rules and regulations; if you are in non-compliance, you
may be barred from doing business in that state.

Conclusion

Income tax laws are quite complicated. The amount you may save by attempting
to tackle your own taxes, particularly as they relate to a business, can be greatly
overshadowed by the expense you may incur if you make a mistake. This axiom
takes on greater significance when the return is for a corporation – especially the
first return. However, a far greater consideration than potential mistakes, is
missing opportunities which may be available to you and your business.

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Reset Form
Michigan Department of Treasury
518 (Rev. 11-07) Type or print in blue or black ink.

Registration for Michigan Taxes
Check the box that best describes the reason for this application.
Started a New Business Acquired/Transferred All/Part of a Business
Reinstated an Existing Account(s) Added a New Location(s)
1. Federal Employer Identification Number, if known
Hired Employee / Hired Michigan Resident Flow-thru Entity Withholding
Incorporated / Purchased an Existing Business Other (explain)
2. Company Name or Owner's Full Name (include, if applicable, Corp, Inc, PC, LC, LLC, LLP, etc.). Required.

3. Business Name, Assumed Name or DBA (as registered with the county)

4. Address for all legal contacts (street and number - no PO boxes) Business Telephone
Legal
Address
City State ZIP Code
(Required)

5. Address, if different from Box 4, where all tax forms will be sent, unless otherwise instructed If this address is for an accountant or
other representative, attach Form 151,
Mailing Power of Attorney.
Address City State ZIP Code

6. Address of the actual Michigan location of the business, if different from above (street and number--no PO boxes). See instructions.
Physical
Address City State ZIP Code

7. Enter the Business Ownership Type code from Page 4 (Required) 7.
If your business is a limited partnership, you must name all general partners beginning on line 27.
Check this box if you are an Employee Leasing Company (Professional Employer Organization (PEO)). Attach a list of your clients.

8. If you are a Michigan entity and line 7 is 34, 40, 41 or 42, enter your Michigan
Department of Labor and Economic Growth (DLEG) Corporate ID Number 8.
Check this box if you have applied for and not yet received your ID number.
Date of Incorporation _______________________ State of Incorporation_______________________
9. Enter Business Code (SIC) that best describes your business from the list in this booklet 9.
10. Define your business activity 11. What products, if any, do you sell (sold to final consumer)?

Check the tax(es) below for which Date that liability will begin Estimated monthly payment for each tax
you are registering. At least one for each box checked at left. Required if box at left is checked.
box (12-15) must be checked. Month Day Year

12. Sales Tax 12a. 12b. Up to $65 Up to $300 Over $300

13. Use Tax 13a. 13b. Up to $65 Up to $300 Over $300

14. Income Tax Withholding
(See line 22.) 14a. 14b. Up to $65 Up to $300 Over $300
Michigan Business Tax is required only if annual gross
15. Annual Gross Receipts
receipts in Michigan exceed $350,000 with the exception
over $350,000 (MBT) 15a. of insurance companies and financial institutions.

Check the box if these other taxes also apply:
16. Unemployment Insurance Tax. Attach UIA Schedule A and UIA Schedule B. Corporations, LLCs, LLPs: Enclose a copy
of your Articles of Incorporation or Organization. You must complete all items on this form accurately and completely.
Failure to do so may subject you to the penalties provided under the Michigan Employment Security (MES) Act.
17. Motor Fuel/IFTA Tax. Complete line 25. Treasury will review your registration and send any necessary tax application
forms.
18. Tobacco Tax. Complete line 26. Treasury will review your registration and send any necessary tax application forms.

19. Enter the number of business locations you will operate in Michigan (Required) 19.
If more than 1, attach a list of names and addresses.
Continued on reverse side.

518, Page 2

20. Enter the month, numerically, that you close your tax books (for example, enter 08 for August) 20.
21. Seasonal Only: (Your business is not open continuously for the entire year)
a. Enter the month, numerically, this seasonal business opens 21a.

b. Enter the month, numerically, this seasonal business closes 21b.

Note: If you are registering to sell at only one or two events in Michigan per year, do not submit this registration
form. Instead, file a Concessionaire's Sales Tax Return and Payment (Form 2271). This form can be obtained on
Treasury's Web site at www.michigan.gov/taxes, or by calling 1-517-636-4660.

22. Check this box if you use a payroll service that produces your payroll checks and sends income tax withholding
payments to the State and Federal Governments. Attach a Payroll Service Provider Combined Power of Attorney
Authorization and Corporate Officer Liability (COL) Certificate for Business (Form 3683). This form can be obtained
on Treasury's Web site at www.michigan.gov/taxes, or by calling 1-517-636-4660.

Enter the name of your payroll service provider:

23. If you are incorporating an existing business, or if you purchased an existing business, list previous business names and
addresses, if known.
Previous Business Name and Address

Previous Business Name and Address

24. If you purchased an existing business, what assets did you acquire? Check all that apply.
Land Building Furniture and Fixtures Equipment Inventory Accounts Payable Goodwill None

25. Motor Fuel/IFTA Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/taxes) Yes No
a. Will you operate a terminal or refinery? 25a.
b. Do you own a diesel-powered vehicle used for transport across Michigan's borders with three
or more axles or two axles and a gross vehicle weight over 26,000 lbs? 25b.
c. Will you transport fuel across Michigan's borders? 25c.
26. Tobacco Tax: (if you answer Yes to any of the questions below, see Web site www.michigan.gov/taxes)
a. Will you sell tobacco products to someone who will offer them for sale? 26a.
b. Will you operate a tobacco products vending machine? 26b.
(1) If yes, do you supply tobacco products for the machine? 26b1.
(2) If you do not supply the tobacco products, name the supplier

Complete all the information for each owner or partner. For limited partnership you must list all general partners. For limited
liability companies you must list all members. For corporations you must list all officers, but do not include shareholders who
are not officers. Attach a separate list if necessary.

I certify that the information provided on this form is true, correct and complete to the best of my knowledge and belief.
27. Name (Last, First, Middle, Jr/Sr/III) Title Date of Birth Phone Number

Driver License / MI Identification No. Social Security Number Signature







Questions regarding this form should be directed to MAIL TO: Michigan Department of Treasury FAX TO: 517-636-4520
the Department at 517-636-4660. Submit this form six P.O. Box 30778
weeks before you intend to start your business. Lansing, MI 48909-8278

Michigan Unemployment Insurance Agency
518 Schedule A (Rev. 8/05)

UIA Schedule A - Liability Questionnaire
Issued under authority of the Michigan Employment Security Act of 1936, as amended, MCL 421.1 et seq.
Filing is mandatory for all employers. You must complete all items on this form accurately and
completely. Failure to do so may subject you to the penalties provided under the MES Act.

UIA Account Number, if already assigned Federal Employer Identification No. (required)

An employing unit becomes liable to pay Michigan unemployment taxes when the employing unit meets any of the following criteria:
Pays $1,000 or more in gross wages for covered employment in a calendar year.
Employs one or more employees in 20 different weeks within a calendar year.
Acquires all or part of an existing Michigan business.
Pays at least $1,000 in cash, not including room and board, for domestic service within a calendar quarter.
Pays at least $20,000 in cash, not including room and board, for agricultural service within a calendar quarter, OR
employs at least 10 agricultural workers in each of 20 different weeks in the current or preceding calendar year.
Elects coverage under the terms of the Michigan Employment Security (MES) Act.
Is subject to federal unemployment tax.
When any one of the above criteria is met, you must submit Form 518, Registration for Michigan Taxes, and UIA Schedule A -
Liability Questionnaire and UIA Schedule B - Successorship Questionnaire. You must also begin quarterly filing of Form UIA
1020, Employer's Quarterly Tax Report, Form UIA 1020-R, Reimbursing Employer's Quarterly Payroll Report and Form UIA 1017,
Wage Detail Report. Unemployment taxes are due and payable beginning with the first calendar quarter in which you had payroll.
Due dates for tax and wage reports are April 25, July 25, October 25 and January 25.

Providing inaccurate or incomplete information in this Registration, or UIA Schedules A or B, will be evidence of
intentional misrepresentation and may subject you to the civil and/or criminal penalties provided in Sections 54 and
54b of the Michigan Employment Security (MES) Act.
Month Day Year

On what date did/will you first employ anyone in Michigan?

Complete only one of the seven items below that best describes your business.

1. EMPLOYERS OTHER THAN DOMESTIC OR AGRICULTURAL Month Day Year

A. If you have had a gross payroll of $1,000 or more within a calendar year,
enter the date it was reached or will be reached.

B. If you have had 20 or more calendar weeks in which one or more persons Month Day Year
performed services for you within a calendar year, enter the date the 20th
week was reached or will be reached. The weeks do not have to be
consecutive nor the persons the same.
2. AGRICULTURAL EMPLOYERS
A. If you have had a total cash payroll of $20,000 or more for agricultural Month Day Year
services performed within a calendar quarter in either the current or
preceding calendar year, not including room and board, enter the date the
$20,000 was reached or will be reached.

B. If you have had at least 10 agricultural workers in each of 20 different Month Day Year
weeks in the current or preceding calendar year, enter the date the 20th
week was reached or will be reached. The weeks do not have to be
consecutive nor the persons the same.
3. DOMESTIC/HOUSEHOLD EMPLOYERS
A. If you have had a cash payroll of $1,000 or more for domestic services Month Day Year
within a calendar quarter in either the current or preceding calendar year,
not including room and board, enter the date the $1,000 was reached or will
be reached.
4. NONPROFIT EMPLOYERS
Nonprofit organizations finance their unemployment liability by either (1) paying unemployment taxes on the taxable wages of
their employees (contributing) or (2) making a specific prior election to reimburse the UIA for any unemployment benefits paid
to their former employees (reimbursing). A nonprofit organization that does not elect to be reimbursing will be, by default,
contributing. To elect reimbursing status, see paragraphs 4A-4D.

A. Nonprofit employers electing reimbursing status must provide the UIA with a copy of the documentation from the Internal
Revenue Service (IRS) granting 501(c)(3) status.

Check this box if you elect to be a reimbursing employer. Attach a copy of your IRS 501(c)(3) documentation.
Failure to check this box will result in the establishment of your liability as a contributing employer.
Continued on page 2

518 Schedule A, Page 2

4. NONPROFIT EMPLOYERS (continued)
B. If you are a nonprofit employer electing reimbursing status, enter $
the amount (or estimate) of your gross annual payroll

C. Bonding Requirements. Section 13a of the Michigan Employment Security (MES) Act requires that nonprofit
employers electing reimbursing status on or after December 21, 1989, and that have, or expect to have, a gross payroll
of more than $100,000 during any calendar year must notify the UIA of that fact immediately and must provide a
surety bond, irrevocable letter of credit, or other banking device approved by the UIA, in an amount to be determined
by the UIA to secure the employer's obligations under the MES Act. If you exceed $100,000 in gross payroll in a later
year, you are obligated to notify the UIA, and provide the bond at that time.

D. If your organization is funded more than 50 percent by a grant, list the source and duration of the grant.
Source Start Date End Date

5. GOVERNMENTAL AGENCIES, INDIAN TRIBES AND TRIBAL UNITS
Governmental entities generally reimburse unemployment insurance benefits paid to former employees on a dollar-for-dollar
basis unless they elect to make quarterly "contribution" payments.

A. If you are a governmental agency, or Indian tribe or tribal unit,
identify the type (i.e., city, township, commission, authority, tribe, etc.)
Month Day

B. Enter your fiscal year beginning date

Under the MES Act, a governmental agency or Indian tribe finances its unemployment liability by (1) reimbursing the
UIA for any unemployment benefits paid to their former employees (reimbursing) or (2) electing to pay unemployment
taxes on the taxable wages of its employees (contributing).

C. Check this box if you elect to be a contributing employer. Failure to check this box will result in the establishment
of your liability as a reimbursing employer. Indian tribes and tribal units are subject to the same bonding
requirements as nonprofit employers (see Line 4C, above).

6. FEDERAL UNEMPLOYMENT TAX ACT (FUTA) SUBJECTIVITY. Select this option ONLY if you are NOT liable for UIA taxes
under any of the other employer types (1-5 above). State

If you are already subject to FUTA, enter the state, other than Michigan, where you became liable

Note: "Subject to FUTA" refers to filing Form 940 with the IRS. If you are required to file Form 940 (FUTA) with the IRS in
other states, you are required to file and pay state unemployment taxes in Michigan.

7. ELECTIVE COVERAGE. For employers who would not otherwise be liable for unemployment taxes, such as churches.

Check this box if you wish to elect coverage under the MES Act. Approval is subject to UIA review; some qualifiers
apply. Your election, if granted, will apply to all your employees.

Give your reason for electing coverage in the space provided below. If you are an individual owner or partnership electing to
cover family members, specify their relationship to the owner or partners. You may not elect coverage for your parents or
spouse, nor for your child under the age of 18. Individual owners and partners cannot elect coverage for themselves. You may
not elect coverage for domestic employment below the statutory requirements stated above. Election of coverage remains in
effect for a minimum of two calendar years.

Print Name of Owner/Officer Signature of Owner/Officer

Title Telephone Number Date

Print Name of Owner/Officer Signature of Owner/Officer


Attach this schedule to Form 518, Registration for Michigan Taxes and mail it to the Michigan Department of Treasury.

Michigan Unemployment Insurance Agency
518 Schedule B (Rev. 11-07)

UIA Schedule B - Successorship Questionnaire
Issued under authority of the Michigan Employment Security Act of 1936, as amended, MCL 421.1 et seq. Filing is mandatory for employers.

You must complete all items on this form accurately and completely. Failure to do so may subject you to the penalties
provided under the Michigan Employment Security (MES) Act. Attach additional sheets if necessary.

Successorship Reporting Requirement. If you acquired any part of the Michigan assets, trade or business of another
employer, as defined in Part 3 of this form, by purchase, rental, lease, inheritance, merger, foreclosure, bankruptcy, gift or any
other form of transfer, you must provide the following information. If you made multiple acquisitions, you must file a separate
UIA Schedule B for each acquisition (photocopies of this form are acceptable). If you made no acquisitions, you are still
required to complete this schedule. If subsequent to completing this registration form, you transfer the assets (by sale or
transfer), organization (payroll/employees), trade (customers/accounts), or business (products/services), in whole or in part, to a
new or previously existing business in Michigan, it is mandatory that you notify this Agency immediately by completing an
additional Schedule B.
UIA Account Number Federal Employer Identification No.
(if already assigned) (required)

PART I: QUESTIONS ABOUT PRIOR OR CURRENT BUSINESS FORMATIONS, ACQUISITIONS OR MERGERS
For each of the following five business formation, acquisition or merger types, the employer must indicate the pertinent business
name, address and UIA Account Number in the space provided.
1. In the past 6 years, you formed, acquired or merged with a business by any means. If not applicable, check box
Business Name and Address UIA Account Number

a. If you formed a new business, what did you acquire from the previously existing business? (check all that apply)
Land Buildings Furniture/Fixtures Equipment Inventory Accounts Receivable Goodwill
Employees Trade Customer Accounts None
b. If you purchased, acquired or merged with an existing business by any means (including lease), what assets did you acquire?
(check all that apply)
c. What was the business activity of the previous business?

2. At the current time, you are forming, or acquiring, a business by any means. If not applicable, check box

a. If you formed a new business, what did you acquire from a previously existing business? (check all that apply)
b. If you are purchasing or acquiring an existing business by any means (including by lease), what assets are you acquiring?
(check all that apply)
c. Will any owner or owners of the previous business continue to operate or manage the business being registered by this form?
Yes No If yes, provide name, title and business address below.

d. What was the business activity of the previous business?

e. What will be the business activity, if any, of the previous business after the new business being registered is formed?

f. What will be the business activity of the new business being registered by this form?

518 Schedule B, Page 2

PART I: QUESTIONS ABOUT PRIOR OR CURRENT BUSINESS FORMATIONS, ACQUISITIONS OR MERGERS (continued)

3. At the current time, you are incorporating an existing business entity. If not applicable, check box

a. What was the business activity of the business entity you are incorporating?

b. What will be the business activity of the new business being registered by this form?

4. At the current time, you are merging, by any means, with one or more business entities. If not applicable, check box

a. If you are purchasing or acquiring an existing business by merger, what are you acquiring? (check all that apply)
b. If you are forming a new business, what are you acquiring from a previously existing business? (check all that apply)
c. Will any owner or owners of the merging business continue to operate or manage the business being registered by this form?
Yes No If yes, provide name, title and business address below.

d. What was the business activity of the merging business?

e. What will be the business activity of the continuing business being registered by this form?

5. You are intending to form a business at a future time, by any means. If not applicable, check box

Yes No

If yes, please explain:

518 Schedule B, Page 3

PART II: FORMER OWNER INFORMATION
Former Owner's Name Former Owner's UIA Account Number or FEIN, if known.

Corporate Name or DBA Area Code & Telephone Number

Current Street Address (not a P.O. Box)

City, State, ZIP

PART III: ACQUISITION INFORMATION

What Percent? Date Acquired
1. Did you acquire all, part, or none of the assets of any
former business? All Part % None

2. Did you acquire all, part, or none of the organization
(employees/payroll/personnel) of any former business?

a. If all or part, indicate the percent and date acquired. All Part % None
b. Did you acquire all or part of the
employees/payroll/personnel of any former business
by leasing any of those employee/payroll/personnel? Yes No (If yes, provide a copy of your lease agreement)

3. Did you acquire all, part, or none of the trade
(customers/accounts/clients) of any former business? All Part % None
4. Did you acquire all, part, or none of the former owner's
Michigan business (products/services) of any former All Part % None
business?
Month Day Year
5. Was the Michigan business described in 1-4 above being
operated at the time of acquisition? If no, enter the date Yes No
it ceased operation.

6. Are you conducting/operating the Michigan business you Yes No
acquired?

7. Is your Michigan business substantially owned or
controlled in any way by the same interests that owned
or controlled the organization, business or assets of a Yes No
former business?

8. Did you hold any secured interest in any of the
Michigan assets acquired? Yes No If yes, enter balance owed $

9. Enter the reasonable value of the Michigan organization,
trade, business or assets acquired? $

Providing inaccurate or incomplete information in this Registration, or UIA Schedules A or B, will be evidence of
intentional misrepresentation and may subject you to the civil and/or criminal penalties in Sections 54 and 54b of the
Michigan Employment Securities (MES) Act.

Print Name of Owner/Officer Signature of Owner/Officer/Authorized Agent


Print Name of Owner/Officer Signature of Owner/Officer/Authorized Agent


Attach this schedule to Form 518, Registration for Michigan Taxes and mail it to the Michigan Department of Treasury.

Michigan Department of Treasury and Unemployment Insurance Agency (UIA)
151 (Rev. 8-05)

Power of Attorney
Issued under authority of the Revenue Act and the Michigan Employment Security (MES) Act.
Complete this form if you wish to appoint someone to represent you to the State of Michigan on tax, benefit or debt matters, or if you
wish to revoke or change your current Power of Attorney representation. Read the instructions on page 2 before completing this form.

PART 1: TAXPAYER INFORMATION
Taxpayer Name and Address (include spouse's name if joint return) If a business, enter DBA, trade or assumed name.

Telephone Number Fax Number

FEIN or Treasury Account No. UIA Account No.

Taxpayer SSN Spouse SSN E-mail Address

PART 2: REPRESENTATIVE INFORMATION AND AUTHORIZATION DATES
Your authorized representative may be an organization, firm, or individual. If your representative is not an individual, designate a contact person.
Submit a separate form for each representative.
Representative Name and Address Contact Name (if applicable) E-mail Address

Telephone Number Fax Number

Beginning Authorization Date (mm/dd/yyyy) Ending Authorization Date (mm/dd/yyyy) *

PART 3: TYPE OF AUTHORIZATION
GENERAL AUTHORIZATION
Authorizes my representative to: (1) inspect or receive confidential information, (2) represent me and make oral or written Treasury UIA**
presentations of fact and/or argument, (3) sign returns, (4) enter into agreements, and (5) receive mail from Treasury or UIA
(includes forms, billings, and notices). This authorization applies to all tax/non-tax matters and for all years or
periods.
Section A - Treasury Section B - UIA**
LIMITED AUTHORIZATION All Only as All Only as
Select the type of authorization by checking the appropriate boxes in Tax/Nontax Specified Tax/Nontax Specified
Matters Below Matters Below
Section A and Section B.
1. Inspect or receive confidential information
2. Represent me and make oral or written presentation of fact or argument
3. Sign returns
4. Enter into agreements
5. Receive mail from Treasury or UIA (includes forms, billings and notices)

Tax Type (Income, Unemployment, Sales, Student Loan, etc.) Form Type (MI-1040, UIA 1020, 1020-R, 1017, etc.) or Assessment No. Year(s) or Period(s)

PART 4: CHANGE IN POWER OF ATTORNEY
Treasury UIA**
CHANGE IN POWER OF ATTORNEY REPRESENTATION: This form replaces all earlier Powers of Attorney,
except those attached, on file for the same tax/non-tax matters and years or periods covered by this Power of Attorney.
REVOKE PREVIOUS AUTHORIZATION: I revoke all Powers of Attorney submitted and will represent myself in all
tax matters.

PART 5: TAXPAYER'S SIGNATURE
If signed by a corporate officer, partner or fiduciary on behalf of the taxpayer, I certify that I have the authority to execute this Power of Attorney.
Signature Name or Title Printed or Typed Date

Spouse's Signature Name or Title Printed or Typed Date

* If no Ending Authorization Date is provided, the above-named representative will be authorized to represent you until you notify the Michigan Department of Treasury or
Unemployment Insurance Agency (UIA) in writing that this Power of Attorney is revoked.
** Unemployment Insurance Agency is abbreviated throughout this form as UIA.

950109
Form 941 for 2009: Employer’s QUARTERLY Federal Tax Return
Department of the Treasury — Internal Revenue Service
(Rev. April 2009) OMB No. 1545-0029

(EIN) —
Employer identification number
Report for this Quarter of 2009
(Check one.)

Name (not your trade name)
1: January, February, March

Trade name (if any) 2: April, May, June

3: July, August, September
Address
Number Street Suite or room number
4: October, November, December

City State ZIP code
Read the separate instructions before you complete Form 941. Type or print within the boxes.
Part 1: Answer these questions for this quarter.
1 Number of employees who received wages, tips, or other compensation for the pay period
including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), Dec. 12 (Quarter 4) 1

2 Wages, tips, and other compensation 2 .
3 Income tax withheld from wages, tips, and other compensation 3 .
4 If no wages, tips, and other compensation are subject to social security or Medicare tax Check and go to line 6.
5 Taxable social security and Medicare wages and tips:
Column 1 Column 2

5a Taxable social security wages . .124 = .
5b Taxable social security tips . .124 = .
5c Taxable Medicare wages & tips . .029 = .
5d Total social security and Medicare taxes (Column 2, lines 5a + 5b + 5c = line 5d) 5d .
6 Total taxes before adjustments (lines 3 + 5d = line 6) 6 .
7 CURRENT QUARTER’S ADJUSTMENTS, for example, a fractions of cents adjustment.
See the instructions.
7a Current quarter’s fractions of cents .
7b Current quarter’s sick pay .
7c Current quarter’s adjustments for tips and group-term life insurance .
7d TOTAL ADJUSTMENTS. Combine all amounts on lines 7a through 7c 7d .
8 Total taxes after adjustments. Combine lines 6 and 7d 8 .
9 Advance earned income credit (EIC) payments made to employees 9 .
10 Total taxes after adjustment for advance EIC (line 8 – line 9 = line 10) 10 .
11 Total deposits for this quarter, including overpayment applied from a
prior quarter and overpayment applied from Form 941-X or
Form 944-X .
12a COBRA premium assistance payments (see instructions) .
12b Number of individuals provided COBRA premium
assistance reported on line 12a

13 Add lines 11 and 12a 13 .
14 Balance due. If line 10 is more than line 13, write the difference here 14 .
15
For information on how to pay, see the instructions.
Overpayment. If line 13 is more than line 10, write the difference here . Check one
Apply to next return.
Send a refund.
You MUST complete both pages of Form 941 and SIGN it. Next

For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 17001Z Form 941 (Rev. 4-2009)

950209
Name (not your trade name) Employer identification number (EIN)

Part 2: Tell us about your deposit schedule and tax liability for this quarter.
If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see Pub. 15
(Circular E), section 11.
Write the state abbreviation for the state where you made your deposits OR write “MU” if you made your
16 deposits in multiple states.

17 Check one: Line 10 is less than $2,500. Go to Part 3.

You were a monthly schedule depositor for the entire quarter. Enter your tax liability
for each month. Then go to Part 3.

Tax liability: Month 1 .
Month 2 .
Month 3 .
Total liability for quarter . Total must equal line 10.
You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941):
Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941.

Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank.

18 If your business has closed or you stopped paying wages Check here, and

enter the final date you paid wages / / .

19 If you are a seasonal employer and you do not have to file a return for every quarter of the year Check here.
Part 4: May we speak with your third-party designee?
Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions
for details.
( ) –
Yes. Designee’s name and phone number

Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS.

No.

Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN it.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Print your
Sign your name here
name here Print your
title here

Date / / Best daytime phone ( ) –

Paid preparer’s use only Check if you are self-employed
Preparer’s
Preparer’s name
SSN/PTIN

Preparer’s signature Date / /
Firm’s name (or yours EIN
if self-employed)

Address Phone ( ) –

City State ZIP code
Page 2 Form 941 (Rev. 4-2009)

850108
Form 940 for 2008: Employer’s Annual Federal Unemployment (FUTA) Tax Return
Department of the Treasury — Internal Revenue Service OMB No. 1545-0028

(EIN) —
Employer identification number
Type of Return
(Check all that apply.)

Name (not your trade name)
a. Amended

Trade name (if any) b. Successor employer

c. No payments to employees
Address in 2008
Number Street Suite or room number
d. Final: Business closed or
stopped paying wages
City State ZIP code

Read the separate instructions before you fill out this form. Please type or print within the boxes.
Part 1: Tell us about your return. If any line does NOT apply, leave it blank.
1 If you were required to pay your state unemployment tax in ...

1a One state only, write the state abbreviation 1a
- OR -
1b More than one state (You are a multi-state employer) 1b Check here. Fill out Schedule A.
Skip line 2 for 2008 and go to line 3.
2 If you paid wages in a state that is subject to CREDIT REDUCTION 2 Check here. Fill out Schedule A
(Form 940), Part 2.
Part 2: Determine your FUTA tax before adjustments for 2008. If any line does NOT apply, leave it blank.

3 Total payments to all employees 3 .
4 Payments exempt from FUTA tax 4 .
Check all that apply: 4a Fringe benefits 4c Retirement/Pension 4e Other
4b Group-term life insurance 4d Dependent care
5 Total of payments made to each employee in excess of
$7,000 5 .
6 Subtotal (line 4 + line 5 = line 6) 6 .
7 Total taxable FUTA wages (line 3 – line 6 = line 7) 7 .
8 FUTA tax before adjustments (line 7 .008 = line 8) 8 .
Part 3: Determine your adjustments. If any line does NOT apply, leave it blank.
9 If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax,
multiply line 7 by .054 (line 7 .054 = line 9). Then go to line 12 9 .
10 If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax,
OR you paid ANY state unemployment tax late (after the due date for filing Form 940), fill out
the worksheet in the instructions. Enter the amount from line 7 of the worksheet onto line 10 10 .
11
Skip line 11 for 2008 and go to line 12.
If credit reduction applies, enter the amount from line 3 of Schedule A (Form 940) 11 .
Part 4: Determine your FUTA tax and balance due or overpayment for 2008. If any line does NOT apply, leave it blank.

12 Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12) 12 .
13 FUTA tax deposited for the year, including any payment applied from a prior year 13 .
14 Balance due (If line 12 is more than line 13, enter the difference on line 14.)
● If line 14 is more than $500, you must deposit your tax.
● If line 14 is $500 or less, you may pay with this return. For more information on how to pay, see
the separate instructions 14 .
15 Overpayment (If line 13 is more than line 12, enter the difference on line 15 and check a box
below.) 15 .
Check one: Apply to next return.
You MUST fill out both pages of this form and SIGN it. Send a refund.
Next
For Privacy Act and Paperwork Reduction Act Notice, see the back of Form 940-V, Payment Voucher. Cat. No. 11234O Form 940 (2008)

850208
Name (not your trade name) Employer identification number (EIN)

Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6.

16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for
a quarter, leave the line blank.

16a 1st quarter (January 1 – March 31) 16a .
16b 2nd quarter (April 1 – June 30) 16b .
16c 3rd quarter (July 1 – September 30) 16c .
16d 4th quarter (October 1 – December 31) 16d .
17 Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) 17 . Total must equal line 12.
Part 6: May we speak with your third-party designee?
Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions
for details.

Yes. Designee’s name and phone number ( ) –

Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS

No.
Part 7: Sign here. You MUST fill out both pages of this form and SIGN it.

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to
the best of my knowledge and belief, it is true, correct, and complete, and that no part of any payment made to a state
unemployment fund claimed as a credit was, or is to be, deducted from the payments made to employees. Declaration of
preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

#
Print your
Sign your name here
name here
Print your
title here

Date / / Best daytime phone ( ) –

Paid preparer’s use only Check if you are self-employed

Preparer’s
Preparer’s name SSN/PTIN

Preparer’s
signature Date / /

Firm’s name (or yours
if self-employed) EIN

Address Phone ( ) –

City State ZIP code

Page 2 Form 940 (2008)

UIA 1020-R
(Rev. 2-07) Reset Form State of Michigan
Department of Labor & Economic Growth
UNEMPLOYMENT INSURANCE AGENCY
•
Authorized by
MCL 421.1, et seq.

Tax Office – Suite 11-500
3024 W. Grand Boulevard – Detroit, Michigan 48202
Phone: (313) 456-2180 FAX: (313) 456-2130
www.michigan.gov/uia

REIMBURSING EMPLOYER’S QUARTERLY PAYROLL REPORT
Employer Name & Address Mail To:
Unemployment Insurance Agency
Tax Office
PO Box 33598
Detroit, MI 48232-5598

DO NOT MAKE ADDRESS CORRECTIONS ON THIS FORM.
If the pre-printed address is not correct, please call (800) 638-3994 (in Michigan) or (313) 456-2180 to obtain Form
UIA 1025, Employer Request for Address/Name Change.

INSTRUCTIONS: This report is due on the 25th of the month following the end of the calendar quarter. See
reverse side for detailed instructions.

To i ns ure p ro p e r p ro c e s s i ng o f thi s re p o rt, typ e /p ri nt c ha ra c te rs
0 1 2 3 4 5 6 7 8 9
in i nk w i thi n the b o xe s a s s ho w n.

...... ...... ...... ...... ...... ...... ......
.......

.......

.......

.......

.......

.......

.......

.......

2. Federal Emp.
1. UIA Account
Number ...... ...... ...... ...... ...... ...... ...... I.D. Number
-

3. Quarter
Ending Date
/ /

4. Gross
Wages $ , , , .
5. Provide the number of all full-time and part-time
1st Month
workers who worked during, or received pay for the
pay period, which includes the 12th of the month 2nd Month

3rd Month

YOUR CERTIFICATION: I declare that I have examined this report, and to the best of my knowledge and belief,
it is true, correct and complete.

Signature: Date:

Title: Telephone ( ) -

MAKE A COPY FOR YOUR RECORDS

For UIA Use Only. Do Not Write Below Line.

•
*1020r0702*

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