Kallas Restaurant Accounting has recently contacted the State of Michigan to see why clients are receiving a constant barrage of letters regarding their sales tax filings each month. The State no longer manually records sales tax and state withholding payments. They have switched from a manual system to a computerized system.
The manual system was allowing you to mail your coupon and payment on the 19th or 20th with no late payment issues because a worker would input the date of payment based on the postmark date of the envelope on your check.
The new computerized system will not allow this “grace period” anymore. You will be considered late because the computer recognizes your payments on the process date, not when it was mailed.
You have only 2 options to avoid late penalties, interest, and letters each month:
1) Mail payments by the 15th of each month. However, there is still no guarantee the state will process on time.
2) Sign up for EFT payments with Kallas Company.
With EFT (Electronic Filing of State Tax and State Withholding), the funds are pulled from your account on the 18th of each month and submitted electronically to the State by Kallas on your behalf.
This assures your filings and payments will not be late each month provided you keep enough money in your bank account to pay your taxes, and you get the information to us in a reasonable time frame. It also gives us a submission ID, which proves the payment was submitted on time.