Wayne State University

Aim Higher

City of Detroit

To download a copy of the Detroit Non-Resident Income Tax Return Verification Letter, CLICK HERE

NOTE:  To change your city of Detroit withholdings please go to the W4 Tax Form information page for City of Detroit form.

BACKGROUND:

The City of Detroit recently announced the following effective with the 2005 tax year: Non-Resident taxpayers who allocate less than 100% of their income to services performed in the city of Detroit will be required to attach documentation from their employer to verify lines 1 & 2 of Schedule N on page 2 of the Detroit Non-Resident tax Return Form D- 1040 (NR). Employees are also asked to attach a work log, if applicable. Specifically the forms reads; “If your Detroit allocation is less than 100% please attach a letter form your employer to verify lines 1& 2 of Schedule N, Attach work log if applicable.” According to the City of Detroit Treasury Office, if no documentation is provided, the tax return will be returned to the taxpayer requesting the missing documentation. This will result in delayed refunds. University Approach To Employer Verification Requirement The University is not able to verify the amount of time individual University employees have worked in or outside the City of Detroit. Therefore, each employee is responsible for accurate documentation of that information. The University is also not in a position to and does not provide tax advice to its employees (e.g. what is considered a work log or what should be included in a work log). Therefore, employees should consult with their own tax advisors about the Detroit non-resident tax return requirements and any changes impacting the filing of their 2005 and future returns.

Wayne State is however providing a “template” letter for use in responding to the specific request of our employees. The letter, if requested, and which should be completed by an employee’s manager and/or direct supervisor is not intended to attest to the amount of time a University employee may work in or outside of the City, but rather intended to indicate that the employee has a position or responsibilities with the University that, at times, result in the employee working outside of the City of Detroit.

The letter requires insertion of the employee’s name and his/her direct manager’s name, signature, title and date. As indicated in the letter, preparing and attaching a work log to your 2005 City of Detroit Non Resident Tax return which accurately reflects days worked outside the City of Detroit is the responsibility of the employee.

Frequently Asked Questions are as follows:

Q: Are managers or the University required to verify information included on an employee’s work log?
A: No, employees are responsible for the format and accuracy of the data included in any work log.

Q: Will the Payroll and/or Human Resource Departments provide the required verification letter to employees?
A: No. However, a template verification letter is available for use by all University Units which will be signed by an employee’s direct manager or supervisor (See paragraph above and attached template letter for details.)