(a) Each employer within or doing business within the City who employs one or more persons on a salary, wage, commission or other compensation basis shall, at the time of payment thereof, deduct a tax of one and three-quarters percent (1.75%) from the gross salaries, wages, commissions or other compensation earned by City residents regardless of where such compensation was earned, and shall deduct a tax of one and one and three-quarters percent (1.75%) from the salaries, wages, commissions or other compensation earned in the City by nonresidents.
(b) Notwithstanding the provisions of subsection (a) hereof, where such employer employs a City resident in another taxing municipality requiring such employer to deduct its tax from all employees engaged therein, such employer shall withhold for and remit to the City of Avon only the difference, if any, between the tax imposed by such other taxing municipality and the tax imposed by this chapter.
(c) Each employer shall, on or before the last day of each month, make a return and remit to the City the tax withheld in the previous month. Such return shall be on a form prescribed by, or acceptable to, the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld. However, if the amount of tax deducted by an employer in any one month is less than one hundred dollars ($100.00), 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 in which such month occurred.
(d) On or before January 31 following any calendar year, such employer shall file with the Administrator an information return for each employee from whom City income tax has been or should have been withheld, showing the name, address and social security number of the employee, the total amount of compensation paid during the year and the amount of City income tax withheld from such employee.
(e) Every manager is deemed to be a trustee of the City in collecting and holding the tax required under this chapter to be withheld, and the funds so collected by such withholding are deemed to be trust funds.
Every manager is liable directly to the City for payment of such trust, whether actually collected by such employer or not. A tax deducted and withheld shall be considered paid to the City, whether or not the employer actually remits the tax to the City, for purposes of determining employee payments or credits.
All managers shall be personally liable to the extent of the tax, interest and penalties, jointly and severally, for failure to file the employer's return or to pay the employer's tax, interest and penalties as required under this chapter.
No change in structure by an employer, including a fundamental change, discharges its managers from liability for the employee's or manager's failure to remit funds held in trust, to file a tax return or to pay taxes.
(Ord. 5-85. Passed 4-22-85.)
(f) An individual, partnership, association, corporation or other entity engaged in the business of construction work in the City shall be required to submit a Regional Income Tax Agency (R.I.T.A.) registration form as provided in Section 1444.08(d) of the Building and Housing Code prior to beginning construction work. The registration shall be filed with the Division of Building Inspection, and a certificate of registration shall be issued. Failure to comply shall be cause for suspension of work by the Division of Building Inspection and/or the Department of Taxation prior to the construction work commencing and/or during the performance of such construction work. Proof of possession of a valid certificate of registration shall be necessary to commence or resume suspended construction work. The certificate of registration may be revoked by the Department of Taxation for failure by the contractor to remain current in the filing of required tax documents, for failure to remain current in the required payment of taxes or for failure to comply with this section.
(Ord. 116-92. Passed 10-26-92; Ord. 47-06. Passed 4-24-06; Ord. 135-14. Passed 11-24-14.)