MI SB1154

Amends Michigan income tax withholding requirements for employers, pension/annuity payers, and flow-through entities to apply the tax rate prescribed in section 51 to taxable income after deducting proportional personal and dependency exemptions.

Allows employers with written agreements under the Michigan Strategic Fund Act (Chapter 8D) to retain withheld income taxes attributable to certified new jobs created pursuant to the agreement rather than remitting them to the state.

Requires flow-through entities with more than $200,000 in business income to withhold taxes on nonresident members' distributive shares; allows exemptions for members that file exemption certificates and agree to pay their own taxes.

Establishes reporting requirements for withholding entities, including providing statements to income recipients by January 31 and filing annual reconciliation returns (MI-W3) with the state by February 28, with exceptions for entities going out of business.

Effective only if Senate Bill No. 1153 of the 98th Legislature is enacted into law.