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(a) Each employer shall, at the time of the payment of any salary, wage, commission or other compensation, deduct the tax of one and three-quarters percent, beginning October 1, 1981, from the gross salaries, wages, commissions or other compensation due by the employer to his or her employees who are subject to the provisions of this chapter. In making such deduction at the time of payment, the employer shall compute the tax to the nearest full cent so that mills of five or more shall be dropped. No person shall be entitled to a refund merely because such rounding off of the tax results in an apparent overpayment based on his or her total earnings. Each employer shall, on or before the last day of each month following the calendar quarters ending March 31, June 30, September 30 and December 31, file a return and pay to the Superintendent the tax withheld during the preceding calendar quarter. Such approval for quarterly filings and payments may be withdrawn by the Superintendent when it is in the best interests of the City to do so.
(Ord. 12-96. Passed 12-16-96.)
(b) The employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such tax has in fact been withheld.
(c) Each employer, in collecting the 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 or her employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
(d) No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed by him or her exclusively in or about such person’s residence, though such residence is in the City, but such employee shall be subject to all of the requirements of this chapter.
(e) On or before February 28 of each year beginning with the year 1971, each employer shall file a withholding return on a form prescribed by and obtainable upon request from the Superintendent, setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year, the amount of tax withheld from his or her employees and such other information as may be required by the rules and regulations adopted by the Superintendent. (Ord. 30-70. Passed 7-13-70; Ord. 9-04. Passed 7-19-04.)
(f) The Superintendent, for good cause, may require monthly or immediate returns and payments to be submitted to his or her office, or may grant requests for monthly returns and payments to be submitted. Any employer that withholds tax of more than five hundred dollars ($500.00) on a monthly basis is required to file a return and remit payment on a monthly basis. For those employers required to file monthly withholding returns, the due date of the return shall be the fifteenth day of the month following the month in which the tax is withheld.
(g) Any person required by the Internal Revenue Code to report, on an Internal Revenue Service Form 1099, payments made by such person to any individual not treated by such person as an employee for services performed by such individual shall also report such payment to the City where such services or any portion thereof were performed in the City, or where such payee is a resident of the City. Such report shall be made on a form prescribed by the Tax Administrator, which form shall include the name, address, federal taxpayer identification number, the amount of the payments made to each payee, and the percentage of such payments attributable to the City. Federal forms 1099 may be submitted in lieu of such report. Such return or forms shall be filed annually on or before February 28 of each year.
(h) Any person who is required herein to withhold City income tax from compensation shall pay all such City income tax to the City in accordance with the provisions of this Chapter. In the event the City income tax required to be withheld from the compensation of employees are not so withheld or are not paid to the city in accordance with the provisions of this section, any person, including but not limited to all shareholders, officers, owners, managers, employees, and trustees, having control or supervision of or charged with the responsibility of filing the withholding return and making payment of City income tax withheld are jointly and severally personally liable for the City income tax withheld, not returned, or not paid to the City as well as any related interest and penalties, and are also criminally liable under the provisions of Section 880.99. The liquidation, dissolution, termination, death, or bankruptcy of any person does not discharge such person’s liability for a failure of such person to file withholding returns or withhold or pay City income taxes required to be withheld.
(Ord. 94-75. Passed 1-5-76; Ord. 9-04. Passed 7-19-04; Ord. 12-10. Passed 7-19-10.)