(a) In accordance with this chapter and the rules and regulations prescribed by the Director, each employer within or doing business within this City shall deduct, at the time of the payment of income, salaries, wages, commissions or other compensation, the tax of one and one- half percent (1.5%) of the income, salaries, wages, commissions or other compensation due by such employer to such employee and shall make a return and pay to the Director the amount of taxes so deducted. Effective January 1, 2008, the taxes withheld shall be deposited in accordance with the following schedule:
(1) If the taxes withheld by an employer for the City during the previous tax year averaged less than one thousand dollars ($1,000.00) per month, payments may be made quarterly on or before the last day of the month following the end of the quarter.
(2) If the taxes withheld by an employer for the City during the previous tax year averaged one thousand dollars ($1,000.00) or more per month, the employer shall make a return and pay to the Tax Administrator the amount of taxes so deducted on a monthly basis, due on or before the last day of the month following the month for which the taxes were withheld.
(b) Such return 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 taxes hereby required to be deducted and withheld, whether or not such taxes have in fact been so deducted and withheld.
(c) The employer, in collecting the tax, shall be deemed to hold the same as trustee for the benefit of the City until payment is made by such employer to the City, and any such tax collected by such employer from his employees shall, until same is paid to the City, be deemed a trust fund in the hands of such employer.
(d) The officer(s) or employee(s) of such employer having control or supervision or charged with the responsibility of withholding the tax and making the payment, shall be personally liable for failure to withhold and/or pay the tax, penalties, or interest due as required herein. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of such business to withhold the tax or pay taxes, penalties, or interest due.
(e) On or before February 28 of each year, each employer shall file a withholding return setting for the names, addresses, and social security numbers of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the Income Tax Administrator. All payments not subject to withholding shall be reported on a form required by the Director.
(f) All employers that provide any contractual service within the City, and who employ subcontractors in conjunction with that service, shall provide the City the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this ordinance.
(g) All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to IRS for individuals or businesses to whom or which they have non-employee compensation shall furnish copies of the said forms 1099 to the City Auditor or in lieu thereof, a list containing the same information as required by IRS on the forms 1099 on or before the due date for such forms 1099 as established by Internal Revenue Service.
(Ord. 2007-47. Passed 7-17-07.)
(Ord. 2007-47. Passed 7-17-07.)