(a) Except as provided in subsection (b) below, each employer within or doing business within this Municipality shall deduct and withhold at the time of payment of any salary, wage, commission or other compensation, the Municipality tax of one percent (1%) of the gross salaries, gross wages, commissions or other compensation, subject to the Municipality tax, due by said employer to said employee and shall, at a minimum, on or before the last day of the month following the close of each calendar quarter or as required by subsection (f), file a return and pay to the Finance Director the amount of taxes so deducted and withheld. Said returns shall be on a form or forms prescribed by or acceptable to the Finance Director and shall be subject to the Rules and Regulations prescribed therefor by the Finance Director. 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.
(b) Beginning January 1, 2001, non-resident employers, agents of such employers or other payers that are not situated in this Municipality shall not be required to deduct and withhold Municipality taxes from the taxable income of an individual unless the total amount of tax required to be deducted and withheld for this Municipality on account of all of the employer's employees or all of the other payer's payees exceeds one hundred fifty dollars ($150.00) for any calendar year beginning on or after that date.
(c) Tax Shelter Plans-Contributions by employees to a retirement system are not deductible by such employee. When such contributions are deducted by an employer from the earnings of an employee, such amounts are subject to the Municipality tax and are subject to withholding.
Employer contributions to a SEP, IRA, 401K, including any amount that constitutes supplemental unemployment compensation not included in wages or any other deferred compensation program must be included with an employee's Municipality taxable wages and compensation and such amounts are subject to withholding.
Early retirement incentives, severance payments and wage continuation plans are taxable and are subject to withholding.
(d) The employer and/or the officer or employee having control or supervision of or charged with the responsibility of filing the report and making payments, is personally liable for failure to file the report and/or pay the tax due as required by this chapter. The dissolution of a corporation does not discharge an officer's or employee's liability for a prior failure of the corporation to file Municipality tax returns and/or pay any tax due.
(e) Any employer responsible for collecting Municipality tax shall be deemed to hold same, until payment is made by such employer to this Municipality, as a Trustee for the benefit of this Municipality, and any such tax collected by such employer from his employees, shall, until the same is paid to this Municipality, be deemed a trust fund in the hands of such employer.
(f) An employer who withholds one hundred dollars ($100.00) or more in any month pursuant to this section shall be required to remit such amount with the forms so prescribed, on or before the last day of the month following the close of the calendar month within which the tax was withheld.
(g) On or before the last day of February of each year, an employer must file with the Municipality, a completed reconciliation of the total employer monthly and quarterly withholding tax payments made to the Municipality compared to the total Municipality tax withheld as shown on the W-2's of employee's subject to the Municipality's tax. This reconciliation form must be made along with copies of all W-2 forms for any employee subject to the Municipality's tax. The W-2 forms must include the name, address, Social Security number, all types of gross compensation i.e. income subject to Social Security, Medicare, etc., and Municipality tax withheld.
An employer, with 25 or more employees, that is required to file this reconciliation, must file the reconciliation electronically in the same format as that required by the Social Security Administration. The Finance Director may alter or change this style of electronic filing, from time to time, as information requirements change.
If for any reason, the one percent (1%) Municipality tax was not withheld from all of a taxable employee's compensation, it must be explained in writing, to the Finance Director, as to why the one percent (1%) Municipality tax was not withheld from such individual, e.g. the employee was under eighteen years old, etc.. Every employer required to deduct and withhold the Municipality tax at the source is liable to the Municipality for payment of such tax whether or not actually collected from an employee subject to the Municipality tax.
(h) On February 28th each year all individuals, businesses, employers, brokers or others who engage persons, either on a fee or commission basis or as independent contractors and not employees (those who are not subject to withholding) must provide the Municipality Income Tax Department with copies of all 1099 Miscellaneous Income Forms and/or a list of names, addresses, Social Security numbers and total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.
(i) The Finance Director, for good and reasonable cause, shall have the authority to require the immediate filing and payment of any tax return or payment of tax.
(Ord. 2013-37. Passed 11-20-13.)