To complete Michigan Form 5080, gather your sales, purchase, and payroll records for the reporting period, work through Worksheet 5095 to calculate your taxable bases and deductions, then transfer those figures into the form’s four parts and file through Michigan Treasury Online by the 20th of the month following the period. Form 5080 is the monthly or quarterly return Michigan businesses use to report sales tax, use tax, and income tax withheld from employee wages on a single filing.1Michigan Department of Treasury. 2026 Sales, Use and Withholding Taxes Monthly/Quarterly Return
The form has four parts, and each pulls from a companion document called Worksheet 5095. Fill in the worksheet first. If your business only handles one or two of the three tax types, complete just those sections and leave the others blank.
What You Need Before You Start
Michigan law requires every taxpayer to keep records “necessary for the proper determination of tax liability,”2Michigan Legislature. Michigan Code 205.28 – Powers and Duties of Department which for Form 5080 means having these items in front of you:
- Your Federal Employer Identification Number (FEIN) or Michigan Treasury (TR) Number for the top of the form.
- Gross sales for the period, pulled from your accounting software or sales ledger.
- Documentation for anything you plan to deduct: resale transactions, exempt sales, returned merchandise.
- A log of untaxed purchases, including out-of-state buys, online orders where no tax was collected, and inventory items you pulled for business use.
- Payroll reports showing total Michigan income tax withheld from employee wages.
Exemption Certificates
Any sale you report as exempt has to be backed by a completed Michigan Sales and Use Tax Certificate of Exemption (Form 3372) from the buyer. Michigan does not issue “tax exempt numbers,” so a customer citing a number instead of handing over a valid Form 3372 is not enough to protect you.3Michigan Department of Treasury. Michigan Sales and Use Tax Certificate of Exemption Accepting exempt sales without a proper certificate on file makes you liable for the uncollected tax, plus penalty and interest.
Part 1: Sales and Use Tax
Lines 1a and 1b carry over totals from Worksheet 5095. Line 1a is your gross sales figure. Line 1b covers use tax receipts from sales, rentals, and services. The worksheet walks you through subtracting allowable deductions from each gross figure to reach a taxable base,4Michigan Legislature. Michigan Code 205.54a – Exemptions From Sales Tax which you then multiply by 6 percent.5Michigan Department of Treasury. Sales and Use Taxes
Line 2a is your total sales tax. Line 2b is total use tax on sales and rentals. Neither line can be negative. Line 5 is where the timely-filing discount goes if you qualify.
Part 2: Use Tax on Purchases
Line 7 handles use tax on items you bought or brought into Michigan without paying sales tax. Equipment purchased out of state, online orders where no tax was collected, and inventory withdrawn for your own use all belong here. Enter the total price of those goods from Worksheet 5095 and apply the 6 percent rate.6Michigan Legislature. Michigan Code 205.93 – Use Tax Levy
This is where businesses most often underreport, because it requires tracking purchases you made rather than sales you collected. Keep a running log throughout the period rather than trying to reconstruct it at filing time.
Part 3: Withholding Tax
Line 8 is a single entry: total Michigan income tax withheld from employee wages during the period, taken straight from your payroll reports. Michigan’s individual income tax rate is 4.25 percent, and your payroll system should withhold at that rate after accounting for each employee’s exemptions.7Michigan Legislature. Michigan Code 206.703 – Income Tax Withholding If you use a payroll service, confirm their tables match the current rate before filing.
Part 4: Total Tax and Payment Due
Line 9 adds sales tax, use tax on sales and rentals, use tax on purchases, and withholding tax into one figure. Line 10 subtracts prior payments or overpayment credits you’re carrying forward. Lines 11 through 13 handle penalty and interest for late filings. Line 14 is what you owe.
The Timely Filing Discount
Michigan gives a small discount for filing and paying on time, but it applies only to two-thirds of the sales and use tax collected at the 6 percent rate. It does not apply to the full amount, and it does not apply to withholding tax at all.1Michigan Department of Treasury. 2026 Sales, Use and Withholding Taxes Monthly/Quarterly Return Worksheet 5095 calculates the amount; carry it to Line 5. Missing the 20th-of-the-month deadline by one day forfeits the discount for that period.
How to File and Pay
The fastest route is electronic filing through Michigan Treasury Online at mto.treasury.michigan.gov. Log in, open your SUW account, select the filing period, and the system walks through data entry and totals. When you submit, MTO produces a confirmation. Save it as proof of filing.8Michigan Treasury Online. Michigan Treasury Online Approved commercial tax preparation software can also transmit directly to the Department of Treasury.
To file on paper, print the form and mail it with payment to:
Michigan Department of Treasury
P.O. Box 30324
Lansing, MI 48909-78249Michigan Department of Treasury. 2025 Sales, Use and Withholding Taxes Monthly/Quarterly Return
Mail early enough for the return to arrive by the 20th; the postmark date alone may not satisfy the deadline. Electronic filers pay through MTO by electronic funds transfer from a business bank account. Credit and debit cards are also accepted, though the third-party processors charge convenience fees. Wait for a payment confirmation number before closing your session, since that number is your receipt. If you pay by check with a paper return, make the check payable to “State of Michigan” and write your account number on it.
Deadlines and Late Filing Penalties
Form 5080 is due on the 20th of the month following each reporting period. The Department of Treasury assigns you a monthly or quarterly frequency based on your prior year’s tax liability; higher liability means monthly filing.
Missing the deadline triggers a 5 percent penalty on the tax due. If the return stays unfiled or the tax unpaid past two months, another 5 percent accrues for each month or partial month the delinquency continues, up to a 25 percent cap.10Michigan Legislature. Michigan Code 205.24 – Failure to File or Pay; Penalties Interest runs daily from the original due date at the average prime rate plus one percent.1Michigan Department of Treasury. 2026 Sales, Use and Withholding Taxes Monthly/Quarterly Return The State Treasurer can waive the penalty for reasonable cause; interest cannot be waived.
Fixing an Error After You File
Form 5080 cannot be used to correct a return you already submitted. To fix a wrong sales total, a missed deduction, or an incorrect withholding figure, file an Amended Monthly/Quarterly Return on Form 5092, available through MTO or approved software.9Michigan Department of Treasury. 2025 Sales, Use and Withholding Taxes Monthly/Quarterly Return Complete Worksheet 5095 with the corrected figures first, since Form 5092 pulls from it the same way Form 5080 does. If the amendment increases your liability, include penalty and interest with the payment at the same rates that apply to late original returns. If it decreases your liability, the difference becomes a credit you can apply to future periods or claim as a refund.
Don’t Forget the Annual Return
Filing Form 5080 every month or quarter does not end your annual obligation. Every business with a SUW account must also file Form 5081, the annual return, by February 28 of the following year. Form 5081 reconciles what you paid across all your periodic returns against your actual full-year liability and settles any difference.11Michigan Department of Treasury. Sales, Use and Withholding Taxes Annual Return Your periodic returns do not replace the annual filing, and the annual filing does not replace the periodic returns. Both are required.