(a) For all periods beginning on or after January 1, 2016, each employer, agent of an employer, or other payer located or doing business in the City shall, unless excused by Section 718.011 of the Ohio Revised Code withhold from each employee an amount equal to the product of (i) the qualifying wages of the employee that are earned by the employee in the City and (ii) the City income tax rate set forth in Section 880.04(a). Each such employer, agent of an employer, or other payer shall deduct and withhold the City income tax from such qualifying wages on the date that the employer, agent, or other payer directly, indirectly, or constructively (i) pays the qualifying wages to such employee or (ii) credits the qualifying wages under Internal Revenue Code section 3121, or any amendment or successor provision thereto in effect from time to time, to the benefit of such employee. For all periods beginning on or after January 1, 2016, this Section 880.07(a) and Section 718.03 of the Ohio Revised Code govern the obligation of an employer, agent of an employer, or other payer to withhold and remit to the City the City income tax owed on the qualifying wages of an employee that are earned by the employee in the City and to prepare and file with the City such returns and reports as required by this Section 880.07 or Section 718.03 of the Ohio Revised Code by the dates specified in this Section 880.04 or Section 718.03 of the Ohio Revised Code, as applicable. To the extent that the provisions of this Section 880.07 and the express provisions of Section 718.03 of the Ohio Revised Code are in conflict, Section 718.03 of the Ohio Revised Code shall control.
(Ord. 72-15. Passed 9-28-15.)
(b) Each such employer, agent of an employer, or other payor shall, on or before the last day of the month following the last day of each calendar quarter, make a return and remit to the City the tax hereby required to be withheld. Such return shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefore 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. Any employer, agent of an employer, or other payor who withheld more than $2,399 of City income tax during the immediately preceding calendar year or who withheld more than $200 of City income tax during any month in the preceding calendar quarter shall, on or before the fifteenth (15th) day of each month, make a return and remit to the City the tax hereby required to be withheld for the immediately preceding month.
(Ord. 58-16. Passed 9-12-16.)
(c) On or before the last day of February following any calendar year each employer, agent of an employer, or other payor required to withhold and remit City income tax shall file with the Administrator an information return for each employee for 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. Any employer, agent of an employer, or other payor who must file its Internal Revenue Service Forms W-2 and W-3 electronically shall file the annual City income tax withholding reconciliation report required by this Section 880.07(c) electronically with the City in such manner as provided by the Administrator.
(d) The employer, agent of an employer, or other payor collecting such tax shall be deemed to hold the same, until payment is made by such employer to the City, as a trustee for the benefit of the City, and any such tax collected by such employer, agent, or other payor from qualifying wages paid to employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer, agent, or other payor.
(1) Every officer or employee of an employer, agent of an employer, or other payor who has control or direct supervision of or who is charged with the responsibility for withholding City income tax or filing the return and making payment of such taxes as required by this Section 880.07 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 such officer or employee is liable directly to the City for payment of such trust, regardless of whether actually collected by such employer, agent, or other payor. Any tax deducted and withheld by employers, agents of employers, or other payors in the City is to be considered paid to the City, whether or not the employer, agent, or other payor actually remits the tax to the City, for the purposes of determining employee credits. Refunds cannot be made until withholding is actually remitted to the City.
(2) All officers and employees described in Section 880.07(d)(1) shall be personally liable to the extent of the tax, interest and penalty, jointly and severally, for failure to file the return of the employer, agent of an employer, or other payor or to remit to the City the tax, interest and penalty as required under this chapter to be paid by the employer, agent, or other payor.
(3) No change in structure by an employer, agent of an employer, or other payor, including a fundamental change, discharges its officers and employees described in Section 880.07(d)(1) from liability for the failure by such an officer or employee to remit funds held in trust, to file a tax return or to pay taxes.
(Ord. 72-15. Passed 9-28-15.)