“Qualifying wages” means wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted as follows:
(a) Deduct the following amounts:
(1) Any amount included in wages if the amount constitutes compensation attributable to a plan or program described in Section 125 of the Internal Revenue Code.
(2) Any amount included in wages if the amount constitutes payment on account of a disability related to sickness or an accident paid by a party unrelated to the employer, agent of an employer, or other payer.
(b) Add the following amounts:
(1) Any amount not included in wages solely because the employee was employed by the employer before April 1, 1986.
(2) Any amount not included in wages because the amount arises from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, or the sale, exchange, or other disposition of stock purchased under a stock option and the municipal corporation has not exempted the amount from withholding and tax adopted before January 1, 2016. Division (b)(2) of this section applies only to those amounts constituting ordinary income.
(3) Any amount not included in wages if the amount is an amount described in Section 401(k), 403(b), or 457 or other similar plans of the Internal Revenue Code. Division (b)(3) of this section applies only to employee contributions and employee deferrals.
(4) Any amount that is supplemental unemployment compensation benefits described in Section 3402(o)(2) of the Internal Revenue Code and not included in wages.
(5) Any amount received that is treated as self-employment income for federal tax purposes in accordance with Section 1402(a)(8) of the Internal Revenue Code.
(6) Any amount not included in wages if all of the following apply:
A. For the taxable year the amount is employee compensation that is earned outside of the United States and that either is included in the taxpayer's gross income for federal income tax purposes or would have been included in the taxpayer's gross income for such purposes if the taxpayer did not elect to exclude the income under Section 911 of the Internal Revenue Code;
B. For no preceding taxable year did the amount constitute wages as defined in section 3121(a) of the Internal Revenue Code;
C. For no succeeding taxable year will the amount constitute wages; and
D. For any taxable year the amount has not otherwise been added to wages pursuant to either division (b) of this section or R.C. § 718.03, as that section existed before the effective date of H.B. 5 of the 130th general assembly, March 23, 2015.
(Ord. 11077- 2019. Passed 4-16-19.)