At Boge, Wybenga & Bradley, P.C., we know that an informed client is our best customer. And the Internet is a great education resource, with endless amounts of information just a click or two away. But sometimes it's nice to have help sorting through the virtual noise and clutter, so we've selected a few helpful articles for you to view. Check back often, for all the latest information on ways to manage your business and personal financial needs more effectively. Just click on the article titles below to view the complete text. New Michigan Form 4917—Flow-Through Withholding Quarterly Return Michigan partnerships, S-corporations and LLC’s will be receiving a mailing from State of Michigan regarding their responsibility to withhold and pay flow-through withholding quarterly.  Here is the simple explanation of what is required and how it affects a business: A partnership, S-corp or LLC with partners, shareholders or members is required to withhold and pay quarterly on their K-1 recipients IF The K-1 recipient is a C-corporation, and the business income of the business is over $200,000, THEN withhold and pay 6% Michigan tax on their distributive share of income.  Michigan calculates the business income same as Federal taxable income plus add-back of bonus depreciation and DPAD taken on Federal return. The K-1 recipient is a Michigan non-resident individual, THEN withhold and pay 4.35% Michigan tax on their distributive share of income regardless of the entity’s level of business income. The withholding requirement only applies to Michigan-based sales, so you must prorate if they have sales in other states. Additionally, if the flow-through entity has K-1 recipients who are also flow-through entities, you must also examine these situations for the 6% corp/4.35% individual withholding requirement. In addition to the quarterly return to accompany payments, Form 4918 Annual Withholding Reconciliation Return is required by February 28th.

Working May Decrease Your Social Security Benefits Many taxpayers currently underemployed due to recent economic conditions may consider applying for social security retirement benefits earlier than they previously planned to supplement their income. But, continuing to work while receiving those benefits may cause their benefits to be reduced below the anticipated amount.   Energy-Efficient Tax Credits If escalating energy costs have you looking for ways to reduce your gas and electric bills, here are some tips on how you can cut costs and reap tax-saving energy credits as well.   Tax Aspects of Becoming Self-employed Individual taxpayers are opting to start their own businesses for myriad reasons. Regardless of why you're contemplating self-employment, you should consider several basic tax-related issues before and immediately after actually leaving your current job.