Sec. 22.
Second, the taxpayer shall ascertain the percentage which the total compensation paid to employees for work done or for services performed within the city is of the total compensation paid to all the taxpayer's employees within and without the city during the period covered by the return. For allocation purposes, compensation shall be computed on the cash or accrual basis in accordance with the method used in computing the entire net income of the taxpayer.
If an employee performs services within and without the city, the following examples are not all inclusive but may serve as a guide for determining the amount to be treated as compensation for services performed within the city:
(a) In the case of an employee compensated on a time basis, the proportion of the total amount received by him which his working time within the city is of his total working time.
(b) In the case of an employee compensated directly on the volume of business secured by him, such as a salesman on a commission basis, the amount received by him for business attributable to his efforts in the city.
(c) In the case of an employee compensated on other results achieved, the proportion of the total compensation received which the value of his services within the city bears to the value of all his services.
History: 1964, Act 284, Imd. Eff. June 12, 1964
Structure Michigan Compiled Laws
Chapter 141 - Municipal Financing
Act 284 of 1964 - City Income Tax Act (141.501 - 141.787)
284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699)
Section 141.601 - Uniform City Income Tax Ordinance; Short Title.
Section 141.602 - Uniform City Income Tax Ordinance; Rules of Construction, Definitions.
Section 141.603 - Definitions; a to D.
Section 141.604 - Definitions; C.
Section 141.605 - Definitions; D.
Section 141.606 - Definitions; E, F.
Section 141.607 - Definitions; F to N.
Section 141.608 - Definitions; N to P.
Section 141.609 - Definitions; R to T.
Section 141.611 - Excise Tax on Incomes; Rates.
Section 141.612 - Excise Tax on Incomes; Application to Resident Individuals.
Section 141.613 - Types of Nonresident Income to Which Tax Applicable; Extent and Basis of Tax.
Section 141.614 - Excise Tax on Incomes; Taxable Net Profits of a Corporation, Definition.
Section 141.616 - Unincorporated Business, Profession, or Activity; Return.
Section 141.617 - Unincorporated Business, Profession, or Activity; Election to Pay Tax.
Section 141.618 - Partial Business Activity in City; Apportionment of Net Profit.
Section 141.619 - Partial Business Activity in City; Separate Accounting Method.
Section 141.620 - Partial Business Activity in City; Business Allocation Percentage Method.
Section 141.622 - Partial Business Activity in City; Percentage of Compensation Paid Employees.
Section 141.623 - Partial Business Activity in City; Percentage of Gross Revenue.
Section 141.624 - Partial Business Activity in City; Business Allocation Percentage.
Section 141.625 - Partial Business Activity in City; Substitute Methods.
Section 141.626 - Capital Gains and Losses; Determination.
Section 141.627 - Estates or Trusts, Deemed Nonresidents; Definitions.
Section 141.628 - Income From Estates and Trusts.
Section 141.632 - Payments and Benefits Not Subject to Tax.
Section 141.633 - Deductible Expenses Generally.
Section 141.635 - Qualified Taxpayer Within Renaissance Zone; Determination of Deductions Claimed.
Section 141.640 - Extension for Filing Annual Return.
Section 141.641 - Annual Return; Joint Return.
Section 141.642 - Returns; Contents.
Section 141.644 - Federal Income Tax Return; Eliminations.
Section 141.645 - Net Profits; Consolidated Returns.
Section 141.646 - Amended Return; Change of Method of Accounting.
Section 141.652 - Tax Withheld; Payments or Persons Excepted.
Section 141.653 - Tax Withheld; Payment by Employee or Employer.
Section 141.657 - Tax Withheld; Withholding Tables; First Compensation Taxable.
Section 141.658 - Tax Withheld; Overwithheld Tax, Refund.
Section 141.659 - Tax Withheld; Correction of Error, Refund.
Section 141.660 - Tax Withheld; Payment by Employer; Return; Electronic Funds Transfer.
Section 141.662 - Declaration of Estimated Tax; Filing; Form; Time; Exceptions.
Section 141.663 - Declaration of Estimated Tax Not Withheld; Computation; Payment; Installments.
Section 141.664 - Annual Return; Filing; Extension of Time; Failure to File; Penalty.
Section 141.665 - Credit for City Income Tax Paid Another City.
Section 141.666 - Fractional Part of a Cent or Dollar.
Section 141.671 - Rules and Regulations; Adoption; Enforcement; Forms; Collection of Tax.
Section 141.672 - Special Ruling; Appeal to Income Tax Board of Review.
Section 141.674 - Information Confidential; Divulgence, Penalty, Discharge From Employment.
Section 141.680 - Waiver of Interest or Penalties During Extension.
Section 141.681 - Repealed. 1996, Act 478, Eff. Jan. 1, 1997.
Section 141.683 - Additional Tax Assessment; When Interest and Penalty Not Imposed.
Section 141.684 - Due and Unpaid Assessment; Determination; Procedure.
Section 141.685 - Final Assessment; Protest.
Section 141.686 - Failure to Pay Tax; Demand; Recovery; Prosecution.
Section 141.686a - Authority to Impose a Lien for Taxes.
Section 141.687 - Jeopardy Assessment; Procedure.
Section 141.688 - Statute of Limitations; Waiver; Payment of Tax.
Section 141.689 - Statute of Limitations; Refund.
Section 141.693 - Appeal to State Tax Commissioner or Tax Tribunal; Procedure.
Section 141.694 - Appeal to Court of Appeals or Supreme Court; Procedure.
Section 141.695 - Payment to Taxpayer From City General Fund or City Income Tax Trust Fund.