MCL 208.1109 — Definitions; E and F

(1) "Employee" means an employee as defined in section 3401(c) of the internal revenue code. A person from whom an employer is required to withhold for federal income tax purposes is prima facie considered an employee.
(2) "Employer" means an employer as defined in section 3401(d) of the internal revenue code. A person required to withhold for federal income tax purposes is prima facie considered an employer.
(3) "Federal taxable income" means taxable income as defined in section 63 of the internal revenue code, except that federal taxable income shall be calculated as if section 168(k) and section 199 of the internal revenue code were not in effect.
(4) "Financial institution" means that term as defined under chapter 2B.
(5) "Foreign operating entity" means a United States person that satisfies each of the following:
(a) Would otherwise be a part of a unitary business group that has at least 1 person included in the unitary business group that is taxable in this state.
(b) Has substantial operations outside the United States, the District of Columbia, any territory or possession of the United States except for the commonwealth of Puerto Rico, or a political subdivision of any of the foregoing.
(c) At least 80% of its income is active foreign business income as defined in section 861(c)(1)(B) of the internal revenue code.