a. Every employer making payment of compensation to an employee shall deduct and withhold from the compensation a withholdings license fee consisting of 2.0% of gross wages calculated under the provisions of this Subchapter.
b. When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the City, the withholdings license fee shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the City. In order for the City to verify the accuracy of a taxpayer’s reported wages under this Subsection, the responsible person or business entity shall maintain adequate records.
c. Every employer required to deduct and withhold the occupational license fee under this Section shall report the wages or compensation from which employee withholdings fees have been withheld and submit payment for quarterly periods ending March 31, June 30, September 30 and December 31 of each year on or before the last day of the month following the end of each quarter, unless the employer is required at the sole discretion of the City to report and make monthly payments. All monthly payers shall make payment by the 15th of the month following the period end.
d. Employers with employees in Special Taxing Districts as defined in Chapter 11 (Finance, Taxation and Economic Development) of the City’s Code of Ordinances shall report separate wage and tax information on those employees.
e. Every employer who fails to withhold or pay to the City any sums required by this Subchapter to be withheld and paid shall be personally and individually liable to the City for any sum or sums withheld or required to be withheld in accordance with the provisions of this Subchapter.
f. Every employer required to deduct and withhold a fee under this Section shall annually on or before February 28 of each year complete and file on a form furnished or approved by the City a reconciliation of the withholdings license fee withheld where compensation is paid or payable to employees. Either copies of federal forms W-2 and W-3, transmittal of wage and tax statements or a detailed employee listing with the required equivalent information, as determined by the City, shall be submitted.
g. Every employer shall furnish each employee a statement (W-2) on or before January 31 of each year showing the amount of compensation and withholdings license fee deducted by the employer from the compensation paid to the employee for payment to the City during the preceding calendar year.
h. An employer shall be liable for the payment of the fee required to be deducted and withheld under this Section. The employer shall also be liable for any shortfall in payment following completion of the annual reconciliation.
i. Notwithstanding the provisions of this Section, every employee receiving compensation in the City subject to the fee imposed under this Subchapter shall be personally liable for any amount due should the employer fail to withhold. In all cases where the employer does not withhold the fee levied under this Subchapter from the employee, such employee or employees shall be responsible for filing with the City each quarter in the same manner as if they were the employer.
j. The City shall have a lien upon all the property of any employer who fails to withhold or pay over to the City sums required to be withheld under this Section. If the employer withholds, but fails to pay the amounts withheld to the City, the lien shall commence as on the date the amounts withheld were required to be paid to the City. If the employer fails to withhold, the lien shall commence at the time the liability of the employer is assessed by the City.
(Ord. BG2020-23, 9/1/2020; Ord. BG2023-6, 5/2/2023)
Editor's Note: Any business subject to Subchapter 18-2 shall pay a net profit license fee of 1.85% until the end of its current fiscal year, and thereafter the 2.0% net profit license fee shall be in effect for all fiscal years beginning on or after January 1, 2024. All Employee Wage Withholding fees shall be 2% effective January 1, 2024.