(A) Collection of tax.
(1) Each employer doing business inside the village who employs one or more individuals on a salary, wage, commission or other compensation basis, shall deduct at the time of payment of such salary, wage, commission or other compensation, the tax at the rate of 1% per annum on the gross salaries, wages commissions, or other compensation due by the employer to the employee and shall, following the schedules as specified in this section, make a return showing the amount of taxes so deducted and a record of payment showing that all taxes deducted during the periods required have been paid to the village according to the payment schedule prescribed in division (C), below.
(2) It is the duty of each resident employer (as defined in § 35.126) who employs one or more persons on a salary, wage, commission, or other compensation basis, to deduct from compensation paid to any employee subject to this subchapter, the tax of 1% of the salary, wage, bonus, incentive payment, commission or other compensation due by the employer to the employee. The tax shall be deducted by the employer from:
(a) All compensation paid to employees who are non-residents of the village for services rendered, work performed, or other activities engaged in, to earn such compensation within the village; and
(b) From the gross amount of all salaries, wages, bonuses, incentive payments, commissions or other form of compensation paid to employees who are residents of the village, regardless of the place where the services are rendered.
(3) All employers who or which maintain an office or other place of business in the village are required to make the collections and deductions specified in this section, regardless of the fact that the services on account of which any particular deduction is required as to residents of the village, were performed at a place of business of any such employer situated outside the village.
(4) The mere fact that the tax is not withheld will not relieve the employee of the responsibility of filing a return and paying the tax on the compensation received.
(5) Commissions and fees paid to professional people, brokers, and others that are independent contractors and not employees of the payer are not subject to withholding or collection of the tax at the source. The taxpayers must in all instances file returns and pay the tax pursuant to the provisions of this division (A).
(6) (a) In the case of employees who are non-residents of this village, the amount to be deducted is 1% of the compensation paid with respect to personal services rendered in this village.
(b) Where a non-resident receives compensation for personal services rendered or performed partly within and partly outside this village, the withholding employer shall deduct, withhold and remit that portion of the compensation, which is earned within this village in accordance with the following rules of apportionment.
1. If the non-resident is a salesman, agent or other employee whose compensation on the basis of commissions depends directly on the volume of business transacted by him or her, the deducting and withholding shall attach to the portion of the entire compensation the volume of business transacted by the employee within the village bears to the volume of business transacted by him or her within and outside the village.
2. The deducting and withholding of personal service compensation of all other employees (including officers of corporations) shall attach to the portion of the personal service compensation of the employee which the total number of working days employed within the village bears to the total number of working days employed within and outside the village.
3. If it is impossible to apportion the earnings as provided above, because of the peculiar nature of the service of the employee; or the unusual basis of compensation; apportionment shall be based on the facts and the tax deducted and withheld accordingly.
4. The occasional entry into the village of a non-resident employee who performs the duties for which he or she is employed entirely outside the village, but enters the village for the purpose of reporting, receiving instructions, accounting, etc., incidental to his or her duties outside the village, shall not be deemed to take such employee out of the class of those rendering their services entirely outside the village.
(7) An employer shall withhold the tax on the full amount of any advances made to an employee on account of commissions (whether by the way of drawing account or otherwise, see division (A)(8) below, where the advances are in excess of commissions earned.
(8) An employer required to withhold the tax on compensation paid to an employee shall, in determining the amount on which the tax is to be withheld, ignore any amount allowed and paid by the employer to the employee for expense necessarily and actually incurred by the employee in the actual performance of his or her services, provided, that the expense must be of the kind and in the amount recognized and allowed as deductible expense for federal income tax purposes.
(9) The employer shall be liable for the payment of the required tax to be deducted and withheld, whether or not the taxes have in fact been withheld.
(10) This section shall not require any nonresident employer, agent of such an employer, or other payer that is not situated in the village 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 village on account of all the employer's employees or all of the other payer's payees exceeds $150 for a calendar year beginning on or after that date.
(11) 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 $150 for a calendar year beginning on or after January 1, 2001, the village 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 $150 or less, except as otherwise provided in division (B) of this section.
(12) If a nonresident employer, agent of such an employer, or other payer that is not situated in the village is required to deduct and withhold taxes for an ensuing year under division (A) of this section, and the total amount of tax required to be deducted and withheld under that subsection in each of three consecutive ensuing years is $150 or less, the village 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 $150.
(B) Employer responsible for collecting and holding the tax. Every employer or officer of a corporation is deemed to be a trustee for the village in collecting and holding the tax required under this subchapter to be withheld and the funds so collected by the withholdings are deemed to be trust funds. The officer or employee having control or supervision or charged with the responsibility of filing the return and making payment is personally liable for failure to file the return or pay the tax due as required by this division. The officer or employee shall also be personally liable for the failure to return or pay the tax as well as any related interest and penalties. The dissolution of a corporation does not discharge the officer or employee's liability for a prior failure of the corporation to pay the tax due.
(C) Payment schedule.
(1) The deduction from salaries, wages and other compensation required to be made by employers are to begin with compensation earned on and after October 1, 1968. The first return and payment required to be made on account of such deductions shall be made, filed and paid to the Fiscal Officer between January 1, 1969 and January 31, 1969.
(2) Each employer within the village who employees one or more persons on a salary, wage, commission or other compensation basis shall deduct monthly, or more often than monthly, and at the time of the payment of such salary, wage, commission, or other compensation due by the employer to the employee and shall make a return and pay to the Fiscal Officer the amount of taxes so deducted as follows if the total monthly withholding tax is less than $100:
(a) For the three months ending March 31, on or before April 30;
(b) For the three months ending June 30, on or before July 31;
(c) For the three months ending September 30, on or before October 31;
(d) For the three months ending December 31, on or before the following January 31.
(3) The reporting periods referred to in division (C)(2)are elastic to this extent: The employer will use the same quarterly accounting period for reporting taxes withheld under the Bellville Income Tax Ordinance as he or she uses in reporting quarterly taxes withheld to the federal government.
(4) Effective January 1, 2002 all employers withholding more than $100 per month shall make a return and pay to the Fiscal Officer the amount of tax so deducted on a monthly basis by the last day of the month following the month the moneys were withheld.
(5) The return shall be on a form prescribed by and obtainable from the Fiscal Officer and shall be subject to the rules and regulations prescribed therefor by the Fiscal Officer.
(6) In addition to the provisions set forth in this division any person making compensation to an individual or independent contractor shall report the compensation to the Income Tax Administrator.
(7) Every employer doing business inside the village on a temporary basis shall pay to the village all income taxes withheld or required to be deducted and withheld on a monthly basis, regardless of the amount of taxes involved. The payment shall be made to the village on or before the last day of the month following the month subject to withholding. An employer is
DOING BUSINESS WITHIN THE VILLAGE ON A TEMPORARY BASIS when the employer maintains a place of business in the village or does business within the village for a period during which the employer does not expect to exceed one year.
(8) For adjustment of errors in returns of tax withheld by employers, see division (D) of this section and § 35.130(B) below.
(D) Reconciliation of tax withheld.
(1) Each employer, on or before February 28, shall file with the Department of Taxation of the village an information return (Village of Bellville Reconciliation of Tax Withheld) for each employee from whom income tax has been or should have been withheld showing:
(a) Name and address of each employee;
(b) Total amount of salary, wages, commissions, tips and their compensation paid to the employee during the year; and
(c) W-2 Form showing the amount of municipal income tax withheld from each employee.
(2) In lieu of submitting form W-2s, an alternative method of reporting must be approved by the Fiscal Officer or his or her delegate.
(3) If an error has been made for or against the employer, the error may be corrected in the next withholding period. If the error occurred in the last withholding period the correction may be made when the employer files a reconciliation of tax withheld form.
(E) Reports and informational returns by landlords. The Fiscal Officer may request a roster of the names, addresses and social security numbers of persons residing in rental units or mobile home parks. Every owner of three or more rental units and every owner or operator of a mobile home park may be requested to submit the listing. The listing is to include any changes during the year. The Department of Taxation shall file the roster of persons residing in rental units or mobile home parks upon request.
(F) Payments by self-employed individual, contractor or sub-contractor. Any person who compensates a self-employed individual, contractor or subcontractor shall report the payment. The information required shall include the name, address and social security number (or Federal Identification Number), and the amount of compensation. Federal Form 1099 may be submitted in lieu of the above reporting requirements. The information must be filed annually with the Department of Taxation of the village on or before February 28.
(G) Monthly and quarterly remittance reports required. All withholding payment remittances shall be monthly and quarterly as determined by the criteria set forth in this section, until such time that monthly payments will be required as determined by the Fiscal Officer.
(Ord. 33-01, Art. 4, passed 12-3-2001)