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Michigan SB 426 redirects employment tax withholdings to community college training programs and clarifies rules for professional employer organizations

Original title: Individual income tax: other; employment withholdings redirected from the state to certain community colleges for the new jobs training program; clarify application to professional employer organizations.

Last action · June 17, 2025: REFERRED TO COMMITTEE ON APPROPRIATIONSSponsor: Joseph N. Bellino Jr.

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Michigan Senate Bill 426 authorizes employers and s to remit portions of employee income tax withholdings directly to community colleges for new jobs training programs, and requires separate reporting on annual tax returns. The measure also specifies that these payments are considered state income taxes and mandates that the bill cannot take effect unless Senate Bill No. 425 is enacted.

Why it matters

Changes where specific employment tax withholdings are directed for businesses participating in approved community college training agreements, altering administrative reporting obligations for employers and s.

Background
  • Senate Bill 426 amends the Income Tax Act of 1967 to adjust how employee tax withholdings are allocated for workforce development programs. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Employers

Employers must adjust their tax withholding remittances and annual reporting procedures when participating in community college training programs.

Directly affected

Professional employer organizations

Professional employer organizations are explicitly referenced regarding withholding and payment duties to community colleges on behalf of employers.

Directly affected

Community colleges

Community colleges receive direct tax withholding payments from employers and professional employer organizations for approved new jobs training programs.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Where do employers remit tax withholdings under community college training agreements?
A portion of the taxes withheld attributable to employees in new jobs under a community college agreement is remitted directly to the community college rather than solely to the state.
What happens if Senate Bill No. 425 is not enacted?
According to Enacting Section 1, Senate Bill No. 426 will not take effect unless Senate Bill No. 425 is enacted into law.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

2 actions
  1. Jun 17, 2025SenateCommittee
    REFERRED TO COMMITTEE ON APPROPRIATIONS
  2. Jun 17, 2025SenateIntroduced
    INTRODUCED BY SENATOR JOSEPH BELLINO

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Securities and Exchange Commission, Joseph N. Bellino Jr.
OrganizationSecurities and Exchange Commission“Mentioned regarding equity securities registration under title I of the securiti”Map →
PersonJoseph N. Bellino Jr.“Primary sponsor of Senate Bill 426”Map →

Sources

Open source document

legislature.mi.gov

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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