What is the tax rate?
A. The tax rate for General Business employers from October 1, 2003 through June 30, 2004 is 0.70% (0.007) of the gross wages; the tax rate from July 1, 2004 through June 30, 2005 is 0.65% (0.0065): and the tax rate after July 1, 2005 is 0.63% (0.0063). For financial institutions the rate is and has always been 2% of the gross wages. SB429 changes the tax rate for MBT as well as creating a tiered system. If the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $62,500 for the calendar quarter, the amount of tax is 0.5% of the sum of those wages (0.005). If the sum of all the wages paid by the employer exceeds $62,500 for the calendar quarter, the tax is $312.50 plus 1.17% of the amount the wage exceeds $62,500. For example: if the sum of all wages for the 12/09 quarter is $101,000. The tax is $312.50 plus $450.45 (0.0117 x $38,500 which is the amount exceeding $62,500) = total tax due of $762.95. These changes are effective July 1, 2009 and ex
