(a) In accordance with Rules and Regulations prescribed by the Administrator, each employer within or doing business within the City of Brooklyn shall deduct at the time of the payment of such salary, wage, commission or other compensation, the tax of two and one-half percent (2.5%) per annum of the gross salaries, wages, commission or other compensation due by the said employer to said employee and shall, on or before the last day of the month following the close of each calendar quarter make a return and pay to the Administrator the amount of taxes so deducted, subject to the provisions hereof. 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.
(Ord. 2009-1. Passed 5-26-09.)
(b) Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to the City of Brooklyn, as a Trustee for the benefit of the City of Brooklyn and any such tax collected by such. employer from his employees, shall, until the same is paid to the City of Brooklyn be deemed a trust fund in the hands of such employer.
(c) Such employer who deducts the tax in the amount of four hundred dollars ($400.00) or more in the first or second month of a calendar quarter shall, on or before the last day of the following month, pay to the Administrator the amount of taxes so deducted.
(d) Such employer who makes such payments on a monthly basis for the first two months of a calendar quarter shall pay such tax deducted for the third month of a calendar quarter at the regular time for filing the employer's return of income tax withheld.
(e) Said payments shall be on a form or forms furnished by, obtainable upon request, or on a generic form acceptable to the Administrator setting forth the amount of tax deducted for the specified period and shall be subject to the Rules and Regulations prescribed therefor by the Administrator.
(f) No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about such person's residence, even though such residence is in the City of Brooklyn but such employee shall be subject to all of the requirements of this chapter.
(g) Each manager shall be deemed to be a trustee for the benefit of the City of Brooklyn in collecting and holding the tax required under subsection (a) hereof to be withheld, and the funds so collected by such withholding shall be deemed to be trust funds held for the benefit of the City of Brooklyn. Each manager shall be jointly and severally personally liable to the City of Brooklyn, to the extent of the amount of tax withheld or to have been withheld, plus interest and penalty, if any, for payment of such trust funds, whether or not such funds were actually collected by such employer or manager. Any tax so deducted and withheld is to be considered paid to the City of Brooklyn for purposes of determining employee payments or credits, whether or not such employer or manager actually remits such tax to the City of Brooklyn. No change in structure by an employer, including a fundamental change, discharges each of its managers from the joint and several personal liability of this subsection (g) for the employer's or manager's failure to remit such trust funds to the City of Brooklyn.
(h) Payment of any tax due under this Section 181.071 shall be deemed made within the time prescribed hereunder if made no later than three (3) days after the last day prescribed hereunder for such payment.
(i) 12 - Day Occasional Entry Rule. A non-resident individual who works in Brooklyn 12 or fewer days per year shall be considered an occasional entrant and shall not be subject to Brooklyn’s municipal income fax for those 12 days. For purposes of the 12-day calculation any portion of a day worked in Brooklyn shall be counted as one day worked in Brooklyn. Beginning with the thirteenth day, the employer of said individual shall begin withholding Brooklyn income tax from the remuneration paid by the employer to the individual and shall remit the withheld income tax to Brooklyn. If the individual is self-employed it shall be the responsibility of the individual to remit the appropriate income tax to the City of Brooklyn. If two or more individuals of the same employer (even if they are independent contractors of that employer) perform work in Brooklyn related to the service for which the employer has been engaged, the individuals shall not be subject to the 12-day occasional entry rule but rather to the withholding rules that apply to one hundred fifty dollar ($150.00) deminimus amounts. The 12-day occasional entry rules does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
(j) $150.00 Deminimus Rule. A non-resident employer, agent of such employer, or other payer not situated in Brooklyn shall not be required to withhold Brooklyn income tax from remuneration paid to employees of the employer until the collective tax liability of the employees initially exceeds one hundred fifty dollars ($150.00). Independent contractors of a nonresident employer shall be deemed employees for work performed in Brooklyn on behalf of the employer and are subject to the collective tax liability provision as if they were employees and are not excluded from taxation. When the collective tax liability exceeds one hundred fifty dollars ($150.00) the employer is required to begin withholding the appropriate income tax for Brooklyn on behalf of all employees performing work in Brooklyn. Once the collective tax liability has exceeded one hundred fifty dollars ($150.00) the employer must withhold income tax for Brooklyn for the remainder of that calendar year and for subsequent years, even if the liability in subsequent years does not exceed one hundred fifty dollars ($150.00). However, if the tax liability for each of the three consecutive years (subsequent to that year in which the employer became liable for withholding the income tax) does not exceed one hundred fifty dollars ($150.00), the employer will be considered as not having performed work in Brooklyn in regard to further tax liability, and will again be subject to the original rule provisions.
(Ord. 2001-36. Passed 9-10-01.)