2018 UltraTax CS
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See also: 1040 Michigan Cities frequently asked questions
Overview
Use this screen to allocate a part-year/nonresident’s wages based on the number of days lived and/or worked in the city. In order to include the W-2 information in the Salaries & Wages Report, an entry must be made in the Employer’s name field in this screen.
Federal W2 Information
Information in this section transfers from federal Screen W2. You should only enter information in the fields in this section to change data for city purposes.
Street address of actual work location and dates worked at the location
Explanation / reason for exclusion
Wage Allocation
Use this section to allocate a part-year / nonresident’s wages based on the number of days worked in the city as a nonresident and/or lived in the city as a resident. UltraTax CS calculates a separate W2 Wage Allocation Worksheet for each employer per city. City wage allocations are calculated based on the city code from federal Screen W2, or as entered in this section.
- Nonresident returns: Michigan cities only accept the reported amount in the Local wages box on the employee’s W-2 as the reported amount for a nonresident return if you provide an explanation for the calculation used to determine the amount. Enter the excludable amount and the reason for the exclusion in Screen MJCW2. Michigan cities require a supporting calculation for the amount in the Local wages box because this amount is usually determined by when the bookkeeper started withholding city taxes and may not represent the actual number of days the employee worked in the city due to payroll start dates and notification of the need to withhold city taxes. For nonresident returns with W-2 local wage amounts that are different from federal wage amounts due to days worked in and out of the city, apportion nonresident wages by the number of days / hours worked in the city to the number of days / hours worked for the entire period that the wages were earned. The number of days for a full year is usually 260. Enter the number of days / hours paid, less vacation, holiday and sick days and days / hours worked in city with the city code for the nonresident city in Screen MJCW2. UltraTax CS completes an allocation worksheet for each nonresident city code entered.
- Part-year returns: For part-year returns with W-2 local wage amounts that are different from federal wage amounts, many cities do not require that you fill out the part-year schedule if the part-year resident has only resident taxable wages to the city. However, if the part-year resident has both resident and nonresident taxable wages to the city, complete the wage allocation section in this screen. For part-year returns with W-2 local wage amounts that are different from federal wage amounts, apportion wages by the number of days / hours worked in the city as a resident and nonresident, to the number of days / hours worked for the entire period that the wages were earned. The number of days for a full year is usually 260. Enter the total number of days / hours paid and the number of vacation, holiday and sick days. Also enter days / hours worked in city as a nonresident, and days / hours worked as a resident with the city code for the part-year city. UltraTax CS completes an allocation worksheets for each part-year city code entered.
- Detroit part-year returns: Detroit wages earned during the nonresidency period are to be allocated by the number of days worked in the city as a nonresident to the total number of days worked during the period of nonresidency. Use the Detroit part year returns fields to complete page 2 of Form 5121, City Schedule W.
Vacation, holiday and sick days or hours paid / Actual number of days or hours worked (Force)
Wages earned as a Detroit resident
City Code / … / Days/Hours Worked As Resident (Part-year only)
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