(a) Withholding by employer. In accordance with rules and regulations prescribed by the Administrator, each employer within, or doing business within, the Village who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct, when such salary, wage, commission or other compensation is paid, allocated, apportioned or set aside, the tax at the rate as provided in section 880.03 hereof on the qualifying wages due by such employer to each such employee and shall, make a return and pay to the Administrator the amount of taxes so deducted in accordance with subsection (b) (1), (2), or (3) of this section. The return shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed by the Administrator. 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) Payment schedule. Employers shall pay to the Village all income taxes withheld or required to be deducted and withheld on either a monthly, quarterly or other basis according to the following payment schedule:
(1) Monthly payments of the taxes withheld or deducted shall be made by an employer if said employer withholds one thousand dollars ($1,000.00) or more per month for three consecutive months. Such payments shall be made to the Village on or before the last day of the following month. Once an employer has met the monthly remitting requirements, said employer shall continue to remain a monthly filer and payer unless a written request is made to and approved by the Administrator to revert to a quarterly filer due to the continuous lack of the monthly withholding requirement.
(2) Employers not required to make monthly payments of taxes withheld under subsection (b)(1) above shall make quarterly payments no later than the last day of the month following the end of each calendar quarter.
(3) The Administrator may revoke the approval of monthly or quarterly filing and payments whenever the Administrator has reason to believe that the conditions for granting such authorization have changed, were judged incorrectly, were not met, or when it is in the best interest of the Village to do so. Notice of withdrawal shall be made in writing and, in such case, where the Administrator deems such precaution necessary, the Administrator may require an employer to remit withholding taxes at more frequent intervals.
(c) Stock options. An employer is not required to make any withholding with respect to an individual's disqualifying disposition of an incentive stock option if, at the time of the disqualifying disposition, the individual is not an employee of the corporation with respect to whose stock the option has been issued.
(d) Failure of employer to withhold or remit tax.
(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 Village or by the employer's exemption from the requirement to withhold the tax.
(2) The failure of an employer to remit to the Village 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.
(e) Employer considered as trustee. Each employer in collecting such tax shall be deemed to hold the same, until payment is made by such employer to the Village, as a trustee for the benefit of the Village, and any such tax collected by such employer from his or her employees shall, until the same is paid to the Village, be deemed a trust fund in the hands of such employer. Each employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such tax, in fact, has been withheld.
(f) Payment of tax. Any person who is required to withhold tax from qualifying wages shall pay all such tax to the Village in accordance with the provisions of this section. In the event taxes withheld from the qualifying wages of employees are not paid to the Village in accordance with the provisions of this section, all officers, members, managers, employees, and trustees having control or supervision of or charged with the responsbility of filing the return and making payment are jointly and severally personally liable for the tax not returned or paid to the Village as well as any related interest and penalties, and are also liable under the provisions of section 880.12 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.
(g) Withholding return; list of employees. 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 Village 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 Village tax withheld and such other information as may be required by the Administrator. If the total tax withheld from any employee included tax withheld and remitted to another municipality, the amount of same shall be separately shown on the return of information to the Village concerning each employee. The withholding tax reconciliation shall be filed by each employer on or before February 28 following the end of such calendar year.
(h) Form 1099. In addition to the wage reporting requirement 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 Village when the services were performed in the Village. 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. Federal Form(s) 1099 may be submitted in lieu of such listing. The information shall be filed annually on or before February 28 following the end of such calendar year.
(i) Domestic servants. No person shall be required to withhold the tax on the qualifying wages, commissions, other compensation, and other taxable income paid domestic servants employed exclusively in or about such person's residence. However, such domestic servants shall be responsbile for filing and paying their own returns and taxes.
(Ord. 813. Passed 11-13-72; Ord. 1451. Passed 12-27-01; Ord. 1468. Passed 12-9-02; Ord. 1509. Passed 11-22-04.)