MI HB5574

Amends the City Income Tax Act to require employers located in Michigan to withhold city income taxes from employees who are residents of cities imposing a uniform city income tax, effective January 1, 2013, even if the employer does not do business in that city.

Sets withholding rates for residents at the rate set by ordinance (not to exceed 3%) and for nonresidents at not more than 50% of the resident rate, applied only to the percentage of compensation earned in the city if at least 25% of work is performed there.

Requires residents working in multiple cities to have withholding at the difference between their home city's tax rate and the tax rate of the city where they work.

Makes employers who fail to withhold liable for payment of the withheld amount, though liability is discharged if the employee pays the tax, but employers remain subject to penalties and interest.

Requires all employers in Michigan to have employees complete a withholding certificate as of January 1, 2013.