MI HB5704

Requires employers located in Michigan without a business presence in a city with income tax to withhold taxes beginning January 1, 2014, if they have employees who are residents of a city imposing income tax under a uniform city income tax ordinance.

Establishes withholding rate at the rate set by ordinance for resident individuals, not to exceed 3%, on all compensation paid to resident employees.

Requires all Michigan employers beginning January 1, 2014, to have employees file a form stating number of exemptions claimed, city of residence, predominant place of employment, renaissance zone qualified taxpayer status, and percentage of work performed at the predominant employment location.

Specifies work percentage must be expressed as "less than 25%", "40%", "60%", "80%", or "100%", with no withholding required if estimated work percentage is less than 25%.

Holds employers liable for failure to withhold required amounts, though liability is discharged if the employee later pays the tax, but employers remain subject to penalties and interest.