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Bonuses and other payments of employee compensation made separately from regular payroll payments are subject to Michigan income tax withholding. The withholding amount equals the payment amount multiplied by 4.25 percent (0.0425).
When apportioning business income, the Constitutional concept of a unitary business applies.
Michigans Corporate Income Tax (CIT) is at a flat rate of 6%. The tax applies to C Corporations and any entity that elects to be taxed as a C corporation. Income is apportioned based 100% on the sales factor.
In order to apportion the cost of electricity to one specific department, you simply multiply the amount of the overhead by the number of employees in that department, then divide that by your total number of employees.
To determine income subject to state income taxes, adjustments must be made to the federal AGI . These additions and subtractions from income are listed on the form entitled, Michigan Schedule 1, and a detailed description may be found in the instructions for Schedule 1 .
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Apportionment Percentage To compute the sales factor, divide the total sales in Michigan during the tax year by the total sales everywhere during the tax year.
Apportionment is the determination of the percentage of a business profits subject to a given jurisdictions corporate income or other business taxes. U.S. states apportion business profits based on some combination of the percentage of company property, payroll, and sales located within their borders.

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