Month: December 2011

Car Shuttlers and the Michigan Unemployment Tax

Auto dealers frequently use car shuttlers to deliver vehicles to a customer, auction, or another dealer. Dealers have historically treated the car shuttlers as independent contractors and have not paid Michigan Unemployment Tax on their compensation. The Michigan Employment Security Commission (MESC) has instructed its auditors to treat car shuttlers as employees, and compensation to them as wages subject to the Michigan Unemployment Tax.

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Top Ten Things to Consider in Year-End Income Tax Planning

  1. Accelerate or defer income.  If you have deferred compensation, consider which best suits your planning:  to take your earned income now and pay taxes immediately at today’s historically low tax rates or to defer income until later and pay taxes when rates may be higher. Similarly, if you are eligible for qualified plan distributions and option grants, you need to decide whether to accelerate income recognition.

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