(A) Each employer within the political subdivision, as well as those employers situated outside the political subdivision but who engage in business within the political subdivision, is hereby charged with the duty of collecting the tax from each of his or her employees engaged by him or her or performing for him or her within the political subdivision and making a return and payment thereof to the Collector. Further, each employer is hereby authorized to deduct this tax for each employee in his or her employ, whether said employee is paid by salary, wage or commission and whether or not all such services are performed within the political subdivision.
(B) A person subject to the tax shall be assessed by the employer a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the rate of the tax levied for the calendar year by the number of payroll periods established by the employer for the calendar year. For purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest one-hundredth of a dollar. Collection of the tax shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, except as provided in division (D) below. For purposes of this division (B), COMBINED RATE shall mean the aggregate annual rate of the tax levied by the school district and the municipality.
(C) No person shall be subject to the payment of the local services tax by more than one political subdivision during each payroll period.
(D) In the case of concurrent employment, an employer shall refrain from withholding the tax if the employee provides a recent pay statement from a principal employer that includes the name of the employer, the length of the payroll period and the amount of the tax withheld, and a statement from the employee that the pay statement is from the employee’s principal employer and the employee will notify other employers of a change in principal place of employment within two weeks of its occurrence. The employee’s statement shall be provided on the form approved by DCED.
(E) The tax shall be no more than $52 on each person for each calendar year, irrespective of the number of political subdivisions within which a person maybe employed. The political subdivision shall provide a taxpayer a receipt of payment upon request by the taxpayer.
(F) No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the political subdivision if the failure to withhold taxes arises from incorrect information submitted by the employee as to the employee’s place or places of employment, the employee’s principal office, or where the employee is principally employed. Further, an employer shall not be liable for payment of the local services tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of Paragraph B of § 402.1 of this subchapter and this section and remits the amount so withheld in accordance with this subchapter.
(G) Employers shall be required to remit the local services tax within 30 days after the end of each quarter of a calendar year.
(Ord. 10-2023, passed 10-2-2023)