(a) Each employer within the City of Alliance or doing business within the City of Alliance who employs one or more persons on a salary, wage, commission or other compensation basis (including tips and gratuities) shall deduct at the time of the payment of such salary, wage, commission or other compensation (including tips and gratuities), the tax imposed by Section 181.03 at the rate of one and three-quarters percent (1.75%) until June 30, 2007; and at a rate of two percent (2.0%) effective July 1, 2007 and continuing thereafter until repealed.
(b) Each employer shall, on or before the last day of the month following the close of the calendar quarter ending March 31, June 30, September 30 and December 31 make a return and pay to the Income Tax Administrator the amount of taxes so deducted. However, (when required by the Tax Administrator through an administrative ruling or adopted by the Board of Review), any employer who deducts taxes in the amount of five hundred dollars ($500.00) or more per month shall remit to the Tax Administrator on or before the twentieth day of the second and third months of each calendar quarter the taxes so deducted monthly, which remittance may be based on an estimate made by the employer of the employer's most recent payroll. Also, by January 31, each employer shall file a withholding reconciliation prescribed by and attainable from the Administrator attaching form(s) W-2, setting forth the names and addresses of all employee from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the rules and regulations adopted by the Administrator.
(c) Such employers, in collecting such tax, shall be deemed to hold the same until payment is made by such employer to the City of Alliance, as a trustee for the benefit of the City of Alliance and any such tax collected by such employer from his employees shall, until the same is paid to the City of Alliance, be deemed a trust fund in the hands of such employer.
(d) However, no person shall be required to withhold the tax on the wages, or other compensation paid domestic servants employed exclusively in or about such person's residence, even though the residence is in the City, but such employee shall be subject to all the requirements of this chapter.
(e) (1) Beginning January 1, 2001, the Municipality shall not require any nonresident employer, agent of such an employer or other payer that is not situated in the Municipality to deduct and withhold taxes from the taxable income of an individual unless the total amount of tax required to be deducted and withheld for the Municipality on account of all the employer’s employees or all of the other payer’s payees exceeds one hundred fifty dollars ($150.00) for the calendar year beginning on or after that date. If the total amount of tax required to be deducted and withheld on account of all of the nonresident employer’s employees or all of the other payer’s payees exceeds one hundred fifty dollars ($150.00) for the calendar year beginning on or after January 1, 2001, the Municipality may require the employer, agent or other payer to deduct and withhold taxes in each ensuing year even if the amount required to be deducted and withheld in each of those ensuing years is one hundred fifty dollars ($150.00) or less, except as otherwise provided in subsection (e)(2) hereof.
(2) If a nonresident employer, agent of such an employer, or other payer that is not situated in the Municipality is required to deduct and withhold taxes for the ensuing year under subsection (e)(1) hereof, and the total amount of tax required to be deducted and withheld under that subsection in each of three consecutive ensuing years is one hundred fifty dollars ($150.00) or less, the Municipality shall not require the employer, agent, or other payer to deduct and withhold taxes in any year following the last of those consecutive years unless the amount required to be deducted and withheld in any such following year exceeds one hundred fifty dollars ($150.00).
(f) All individuals, businesses, employers, brokers or others doing business who engage persons, either on a commission basis, or as independent contractors, contract employees, and are not subject to withholding shall indicate the total amount of earnings, payments, commission and bonuses to such as are residents of the City of Alliance, or who do business in the City of Alliance copies of Federal Form 1099 or shall attach a list which shall indicate social security numbers, names, addresses and amounts paid.
(g) Liability for payment: All officers of a corporation or the employees having control or supervision or charged with the responsibility of filing the return and making payment, shall be personally liable for failure to file the return or pay the tax due as required herein. The dissolution, bankruptcy or reorganization of any such employer does not discharge any officer's or employee's liability for a prior failure of such business to file a return or pay taxes due.
(Ord. 04-07. Passed 5-21-07.)