(a) In accordance with Rules and Regulations prescribed by the Director, each employer within or doing business within the Village of Cardington shall deduct at the time of the payment of such salary, wage, commission or other compensation, the tax of one percent (1%) of the gross income, salaries, qualifying wages, commissions or other compensation due by said employer to each 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 Director the amount of taxes so deducted unless said employer elects, in writing, to remit the tax withheld on a monthly basis in which case the returns and payment shall be due on or before the fifteenth (15th) day of the month following the month in which the tax was withheld. Said returns shall be on a form or forms prescribed by or acceptable to the Director and shall be subject to the Rules and Regulations prescribed therefore by the 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. It is the duty of each employer, as hereinbefore defined, who employs one or more persons on a salary, wage, commission, or other compensation basis, to deduct from compensation paid to any employee, as hereinbefore defined, the tax of 1% of such salary, wage, bonus, incentive payment, commission, or other compensation due by the employer to the employee. This tax shall be deducted by the employer at the time of the payment of such salary, wage, bonus, incentive payment, commission or other compensation and such tax shall be deducted by the employer from:
(1) All compensation paid to employees who are non-residents of the Village of Cardington for services rendered, work performed, or other activities engaged in to earn such compensation, within the Village of Cardington; and
(2) From the gross amount of all income, salaries, qualifying wages, bonuses, incentive payments, commissions, or other forms of compensation paid to employees who are residents of the Village of Cardington, regardless of the place where the services are rendered.
(b) Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to the Village of Cardington as Trustee for the benefit of the Village of Cardington and any such tax collected by such employer from his employee shall, until the same is paid to the Village of Cardington, be deemed a trust fund in the hands of such employer.
(c) (1) Employers 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. The mere fact that the tax is not withheld shall not relieve the employee of the responsibility of filing a return and paying the tax on the compensation received. (Ord. 2005-27. Passed 11-7-05.)
(2) Every officer, responsible person and employee having control or supervision of or charged with the responsibility of filing the return, paying the taxes due as required, or otherwise complying with this chapter, shall be personally liable for failure to file a return or pay the tax due as required. Every officer, responsible person and employee having control or supervision of or charged with the responsibility of filing a return, paying the taxes due as required, or otherwise complying with this chapter, 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. No change in the structure, by an employer, including liquidation, dissolution, bankruptcy, and reorganization such as merger, consolidation, acquisition transfer or change in identity form or organization discharges its officers, responsible persons and employees having control or supervision of, or charged with the responsibility for filing the return, paying the taxes due as required, or otherwise complying with this chapter from liability for the employee’s or employer’s failure to remit funds held in trust, to file a tax return or to pay taxes.
(Ord. 2006-15. Passed 11-20-06.)
(Ord. 2006-15. Passed 11-20-06.)
(d) Each employer doing business within the Village of Cardington on a temporary basis shall on a monthly basis pay to the Village all income taxes withheld or required to be withheld regardless of the amount of taxes involved. Such payment shall be paid to the Village within fifteen (15) days of the end of each calendar month. An employer shall be deemed as doing business within the Village of Cardington on a temporary basis when the employer maintains a place of business in the Village of Cardington, or does business in the Village, for a period that the employer does not expect to exceed one year.
(e) Each employer shall make and file a return on a form furnished by the Director, showing the amounts of tax deducted by the employer from the income, salaries, qualifying wages, commissions, vacation pay, bonuses or any other compensation of any employee, payable and/or paid by the employee to the Village of Cardington. Such employer’s return shall be accepted as the return required of an employee whose sole income subject to the tax under this chapter is the full compensation reported to the Village on the return of the employer.
(f) Each employer, on or before January 31, unless written request for thirty days extension is made to and granted by the Director following any calendar year in which such deductions have been made, or should have been made by any employer, shall file with the Director or his delegate an information return (Village of Cardington withholding statement of Qualifying wages Paid and Village of Cardington Income Tax Withheld), for each employee from whom income tax has been or should have been withheld showing the name and address of the employee, the total amount of income, salaries, qualifying wages, commissions and other compensation paid to the employee during the year, and the amount of Village of Cardington income tax withheld from each employee. In addition, each Form (W-2) shall show the employer’s name, address, and Village of Cardington account number. An adding machine tape or list of amount of tax withheld and taxable qualifying wages as shown on the W-2's shall be attached with the number of W-2's shown. Any return not so filed shall be subject to a late filing penalty of five dollars ($5.00) per day for each and every day they remain in violation to a maximum of three hundred dollars ($300.00). In addition to the late filing penalty, any return with remains unfiled after its due date shall be subject to the penalties provided by this chapter.
(g) Any person paying money to an individual or independent contractor shall report such payment if the information should be reported on Federal Form 1099 and filed yearly with the Director on or before February 28th. Any return not so filed shall be subject to a late filing penalty of fifty dollars ($50.00). In addition to the late filing penalty, any return, which remains unfiled after its due date, shall be subject to the penalties provided under this chapter.
(Ord. 2005-27. Passed 11-7-05.)