(a) (1) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the Municipality shall deduct, at the time of the payment of salary, qualifying wages, commissions or other compensation, the tax at the rate imposed in Section 181.03 per year of the qualifying wages, commissions or other compensation or other income due by the employer to the employee, and shall, on or before the fifteenth day of each month, make a return and pay to the Administrator the amount of taxes so deducted during the previous month. However, if the taxes withheld by an employer for the Municipality during the previous tax year averaged less than one hundred dollars ($100.00) per month, payments may be made quarterly on or before the last day of the month following the end of each quarter, subject to the approval of the Administrator.
(2) When a resident or non-resident receives compensation for services for sales of real estate or insurance from an employer whose situs is the City of Canal Fulton, that total compensation is taxable at Canal Fulton tax rate and is payable to the City of Canal Fulton. The site of the property sold or residence of the purchaser of insurance has no bearing on the taxing of the compensation, and therefore income tax shall be deducted and remitted in accordance with 181.17(a)(1).
(b) Returns shall be on a form or forms prescribed or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. The 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.
(c) Such employer in collecting such tax shall be deemed to hold the same, until payment is made by such employer to the Municipality, as a trustee for the benefit of the Municipality, and any such tax collected by such employer from his employees, shall, until the same is paid to the Municipality, be deemed a trust fund in the hands of such employer.
(d) 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 Municipality but such employee shall be subject to all the requirements of this chapter.
(e) (1) Every manager is deemed to be a trustee of this Municipality 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.
(2) Every manager is liable directly to this Municipality for payment of such trust, whether actually collected by such employer or not.
(3) All managers shall be personally liable to the extent of the tax, interest and penalty, jointly and severally, for failure to file the employer's return or to pay the employer's tax, interest and penalty as required under this chapter.
(4) No change in structure by an employer, including a fundamental change, discharges its managers from liability for the employees' or manager's failure to remit funds held in trust, to file a tax return or to pay taxes.
(f) All employers that provide any contractual service within the Municipality, and who employ subcontractors in conjunction with that service, shall provide the Municipality the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(Ord. 37-03. Passed 12-16-03.)