(A) Each employer who employs one of more persons working within the city is required to apply with the city for an occupational license tax reporting number and in such process shall complete and execute the city application for business regulatory license on behalf of each of its employees. The employee is not required to apply with the city unless the employee has earned income other than “wages and other compensation”. The applicant shall remit a one-time payment of $30 to cover administration costs associated with this application.
(B) Every employer making payment of compensation to an employee shall deduct and withhold from the compensation due each employee at the time of payment by the employer an occupational license tax calculated under § 110.03 of this chapter.
(C) When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the city, the license tax shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the city. The license tax shall be computed by obtaining the percentage of compensation for work performed or services rendered within the city as it bears to the total wages and compensation paid or payable. For the city to verify the accuracy of a taxpayer’s reported percentages under this division (C), the taxpayer shall maintain adequate records.
(D) Subject to division (E) below, at a minimum, every employer required to deduct and withhold tax under this section shall make a return and report to the city, and pay to the city, the tax required to be withheld under this section on a quarterly basis, on or before January 30, April 30, July 30 and October 30 following the withholding period.
(E) For each employer who employs persons within the city for which the occupational license tax is required to be withheld from all employee compensation and the amount withheld by the employer exceeds $450 for any one of the preceding four quarters, the employer shall remit the occupational license tax required to be withheld from employees on a monthly basis, with taxes due on or before the fifteenth day of the month following the month in which the wages shall have been paid by said employer.
(F) Every employer who fails to withhold or pay to the city any sums required to be withheld by this subchapter shall be personally and individually liable to the city for any sum or sums withheld or required to be withheld in accordance with the provisions of this section.
(G) The city shall have a lien upon all the property of any employer who fails to withhold or pay over to the city sums required to be withheld under this section. If the employer withholds, but fails to pay the amounts withheld to the city, the lien shall commence as of the date the amounts withheld were required to be paid to the city. If the employer fails to withhold these sums, the lien shall commence at the time the liability of the employer is assessed by the city.
(H) Every employer required to deduct and withhold tax under this section shall annually, on or before February 28 of each year, complete and file with the city an Annual Report of Earnings reporting the tax withheld in each tax district where compensation is paid or payable to employees. Either copies of federal forms W-2 and W-3, transmittal of wage and tax statements, or a detailed employee listing with the required equivalent information, as determined by the city, shall be submitted.
(I) Every professional employer organization (“PEO”) and every employer with an employee leasing arrangement shall include a separate annual report of earnings for each client or co-employer listing the client’s or co-employer’s name, address and telephone number.
(J) Every employer shall furnish each employee a statement, on or before January 31 of each year, showing the amount of compensation and occupational license tax deducted by the employer from the compensation paid to the employee for payment to the city during the preceding calendar year.
(K) The president, vice president, secretary, treasurer or other person holding an equivalent corporate office of any business entity subject to this section shall, or any person who had authority to collect, truthfully account for, or pay over the tax imposed by this subchapter at the time that the taxes imposed by this subchapter become or became due be personally and individually liable, both jointly and severally, for any tax required to be withheld from compensation paid or payable to one or more employees of the business entity, and neither the corporate dissolution or withdrawal of the business entity from the city, nor the cessation of holding any corporate office, shall discharge that liability; provided that, the personal and individual liability shall apply to each and every person holding the corporate office at the time the tax becomes or became obligated.
(L) Notwithstanding divisions (F) and (J) above, every employee receiving compensation in the city subject to the tax imposed under § 110.03 of this chapter shall be personally liable for any amount due. In all cases where the employer does not withhold the tax levied under this subchapter from the employee, such employee or employees shall be responsible for filing with the city each quarter in the same manner as if they were the employer.
(1984 Code, § 110.06) (Ord. O-77-82, passed 11-30-1982; Ord. O-78-82, passed 11-30-1982; Ord. O-48-83, passed 9-6-1983; Ord. O-49-94, passed 12-29-1994; Ord. O-47-01, passed 11-13-2001; Ord. O-65-04, passed 12-7-2004; Ord. O-18-19, passed 6-24-2019) Penalty, see § 110.99