(a) In accordance with the Rules and Regulations prescribed by the Tax Administrator, each employer within or doing business within the City shall deduct at the time of the payment of such Qualifying wages, salaries, bonus payments, commissions or other compensation the tax of one percent (1%) of the qualifying wages, salaries, bonus payments, commissions or other compensation due from the said employer to said employee, on or before the last day of the month following the month of deduction of said tax, make a return and pay to the Tax Administrator the amount of taxes so deducted. Each employer, on or before the last day of the month following the month in which tax was deducted, shall make a return and pay to the Administrator, the amount of taxes so deducted [except if during the previous calendar year said annual withholding amount is less than twelve thousand dollars ($12,000.00), then payment may be remitted on the last day of the month following the close of each quarter]. Once an employer has met the monthly remitting requirements, said employer shall continue to remain a monthly payer. Said returns shall be on a form or forms prescribed by or acceptable to the Tax Administrator and shall be subject to the Rules and Regulations prescribed thereafter by the Tax Administrator.
Such employer shall be liable for the payment of the tax to be withheld, whether or not such taxes have in fact been withheld.
(b) (1) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by the City or by the employer’s exemption from the requirement to withhold the tax.
(2) The failure of an employer to remit to the City the tax withheld relieves the employee from liability for that tax, unless the employee colluded with the employer in connection with the failure to remit the tax withheld.
(c) Such employer in collecting said 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 from his employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
In the event taxes withheld from the qualifying wages, salaries, commissions, and other compensation of employees are not paid to the City in accordance with the provisions on this Section, all officers, members, managers, employees, and trustees having control or supervision of, or charged with the responsibility of filing the return and making payment, are jointly and severally personally liable for the tax not returned or paid to the City, as well as any related interest and penalties, and are also liable under provisions of Section 181.12 hereof. The dissolution, termination, or bankruptcy of a corporation, limited liability company, or business trust does not discharge an officer’s, member’s, manager’s, employee’s, or trustee’s liability for a failure of the corporation, limited liability company, or business trust to file returns or pay said taxes.
(d) Each employer shall file a withholding tax reconciliation showing the sum total of all compensation paid all employees, the portion of which, (if any) was not subject to withholding along with an explanation for same, and the portion of which was subject to withholding, together with the amount of such withholdings remitted. Such return shall include information concerning each employee from whom the city tax was withheld, showing the name, address, zip code and social security number of each such employee, the total amount of compensation paid during the year and the amount of City tax withheld. If the total tax withheld from any employee included tax withheld and remitted to another City, the amount of same shall be separately shown on the return of information to the City concerning each employee. The withholding tax reconciliation shall be filed by each employer on or before February 28 following each calendar year.
(e) In addition to the wage reporting requirements of this Section, any person required by the Internal Revenue Service to report on Form 1099-MISC payments to individuals not treated as employees for services performed, shall also report such payments to the City when services were performed in the City. The information may be submitted on a listing, and shall include the name, address, and social security number (or federal identification number), and the amount of the payments made. Copies of Federal 1099-Misc Form(s) may be submitted in lieu of such listing. The information shall be filed annually on or before February 28 following each calendar year. The listing is required even if 1099-misc form(s) were not issued.
(Ord. 02-05-O. Passed 2-15-04.)