(a) In accordance with this chapter and the Rules and Regulations prescribed by the Administrator, each employer within or doing business within the City, shall deduct, at the time of the payment of such income, qualifying wages, commissions or other compensation, the tax at the current rate of Ashtabula City Income Tax of the gross income, qualifying wages, commissions or other compensation due by the said employer to said employee, and shall, on or before the last day of each month, make a return and pay to the Administrator the amount of taxes so deducted during the previous month: provided, however, that if the amount of the tax so deducted by any employer in the previous tax year averaged less than $100 per month, the employer may defer the filing of a return and payment of the amount deducted until the last day of the month following the end of the calendar quarter for which such taxes have been withheld. The Administrator shall have the authority to deny quarterly payments if the employer is not in full compliance with all City income tax laws.
(b) Said return shall be on a form prescribed by or acceptable to the Administrator. Such employer, in collecting said tax, shall be deemed to hold the same as trustee for the benefit of the City until payment is made by such employer to the City, and any such tax collected by such employer from his employees shall, until same is paid to the City, be deemed a trust fund in the hands of such employer.
(c) On or before February 28 of each Calendar Year, an employer must file with the City an information return on a form prescribed by the Administrator showing the name, address and social security number of each employee from whom City income tax was withheld, the total amount of income, qualifying wages, commissions and other compensation paid to the employee during the prior calendar year and the amount of City income tax withheld from each employee. In addition, each employer, on or before February 28 of each calendar year, shall provide each employee a Form W-2 showing the name, address and social security number of the employee, the total amount of income, qualifying wages, commissions and other compensation paid to the employee during the prior calendar year and the amount of City income tax withheld from such employee. An alternative method of reporting in lieu of submitting Form W-2 must be approved by the Administrator. The Administrator may provide by uniform rule or regulation for the use of electronic media by employers for reporting annual wage and tax data.
(d) All individuals, businesses, employers, brokers or others doing business within the City who are required under the Internal Revenue Code to furnish forms 1099 to IRS for individuals or businesses to whom or which they have non-employee compensation, shall furnish copies of the said form 1099's to the Administrator or in lieu thereof, a list containing the same information as required by IRS on the 1099's on or before the due date for such forms 1099's as established by IRS.
(e) All employers that provide any contractual service within the Municipality, and who employ subcontractors in conjunction with that service, shall provide the Municipality the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(Ord. 2004-26. Approved by voters 5-25-04.)