(a) Each Employer doing Business within the City who employs one or more Employees shall deduct and withhold at the time of payment of each Salaries, Wages, Commissions and Other Compensation the City income tax at the rate of one and eighty hundredths percent (1.80%) on the gross Salaries, Wages, Commissions and Other Compensation due by the Employer to such Employee and shall, following the schedules as specified in this section, make a return showing the amount of taxes so deducted and withheld and a record of payment showing that all taxes deducted and withheld during the periods required have been paid to the City in accordance with the payment schedule prescribed herein.
(b) Each Employer shall be liable for the payment of the City income tax required by this section to be deducted and withheld, whether or not such taxes have, in fact, been withheld. Every Employer, officer of a Corporation or partner or member of an Association or Other Entity is deemed to be a trustee for the City in collecting and holding the City income tax required by this section to be deducted and withheld and the funds so collected through such withholdings are deemed to be trust funds. Each officer or Employee having control or supervision of or charged with the responsibility of filing the return and making payment shall be personally liable for failure to file the return or pay the tax due as required by this section, as well as any related interest and penalties. The dissolution or liquidation of a Corporation, Association or Other Entity does not discharge an officer’s or Employee’s liability for a prior failure of the Corporation, Association or Other Entity to pay the tax due pursuant to this section.
(c) Employers must remit to the City all City income tax deducted and withheld on either a monthly or quarterly basis depending on the amount of taxes deducted and withheld according to the following payment schedule:
(1) Monthly payments of the City income taxes deducted and withheld must be made by an Employer if:
A. The total taxes required to be deducted and withheld in the prior Calendar Year were twelve thousand dollars ($12,000) or more;
B. The total taxes required to be deducted and withheld in any calendar month in the preceding calendar quarter exceeded one thousand dollars ($1,000); or
C. The Employer does Business in the City on a temporary basis as described in subsection (c)(3) hereof.
(2) Monthly payments must be paid to the City within five (5) banking days after the last day of each calendar month.
(3) Quarterly payments of City income taxes deducted and withheld must be made by every Employer who or that is not required to make monthly payments pursuant to subsection (c)(1) hereof. Quarterly payments must be paid to the City no later than the last day of the month following the end of each calendar quarter, except:
A. Every Employer doing Business within the City on a temporary basis must pay to the City all income taxes required to be deducted and withheld on or before the last day of the month following the month subject to withholding, regardless of the amount of taxes required to be deducted and withheld.
B. An Employer is “doing Business within the City on a temporary basis” when the Employer maintains a Place of Business in the City or does Business within the City for a period that the Employer does not expect to exceed twelve (12) months.
(d) On or before February 28 of each Calendar Year, an Employer must file with the City an information return on a form prescribed by the Administrator showing the name, address and social security number of each Employee from whom City income tax was withheld, the total amount of Salaries, Wages, Commissions and Other Compensation paid to the Employee during the prior Calendar Year and the amount of City income tax withheld from each Employee. In addition, each Employer, on or before February 28 of each Calendar Year, shall provide each Employee a Form W-2 showing the name, address and social security number of the Employee, the total amount of Salaries, Wages, Commissions and Other Compensation paid to the Employee during the prior Calendar Year and the amount of City income tax withheld from such Employee. An alternative method of reporting in lieu of submitting Form W-2 must be approved by the Administrator. The Administrator may provide by uniform rule or regulation for the use of electronic media by Employers for reporting annual wage and tax data.
(e) Failure to file any required documentation in a timely manner is subject to assessment of a late filing penalty.
(f) A Nonresident Employer is not required to withhold City income taxes from the Salaries, Wages, Commissions and Other Compensation of an Employee if the total amount of tax required to be withheld on account of all of the Nonresident Employer’s Employees for the Calendar Year is expected to be one hundred fifty dollars ($150) or less. Notwithstanding the foregoing sentence, if the total amount of City income tax required to be deducted and withheld on account of all of the Nonresident Employer’s Employees exceeds one hundred fifty dollars ($150) for a Calendar Year, the Nonresident Employer is required to withhold City income tax in each ensuing Calendar Year regardless of whether in any ensuing Calendar Year the amount of tax required to be deducted and withheld is expected to be one hundred fifty dollars ($150) or less, except as otherwise provided in subsection (g) hereof.
(g) If a Nonresident Employer is required to deduct and withhold City income taxes for an ensuing Calendar Year under subsection (f) hereof and the total amount of tax required to be deducted and withheld in each of three consecutive ensuing Calendar Years is one hundred fifty dollars ($150) or less, the Nonresident Employer shall not be required to deduct and withhold City income taxes in any Calendar Year following the last of those consecutive years unless the amount required to be deducted and withheld in any following Calendar Year exceeds one hundred fifty dollars ($150), in which case, the Employer shall be subject to subsections (f) and (g) hereof.
(Ord. 154-00. Passed 1-8-01.)