(a) Each employer within the Municipality who employs one or more persons on a salary, wage, commission or other compensation basis, shall deduct at the time of the payment of such salary, wage, commission or other compensation, the tax of two percent (2%) per annum of the gross salaries, wages, commissions or other compensation due by the employer to such employee and shall, on or before the last day of the month following the close of each calendar quarter, make a return and pay to the Tax Administrator the amount of taxes so deducted. Such return shall be on a form or forms prescribed by or acceptable to the Tax Administrator, or on a generic form, and shall be subject to the rules and regulations prescribed therefor by the Tax 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) Each employer who does not maintain a permanent office or other place of business within the Municipality, but employs one of more persons working in the Municipality on a salary, wage, commission or other compensation basis, is considered a non-resident employer and shall deduct at the time of the payment of such salary, wage, commission or other compensation, the tax of two percent (2%) per annum on the gross salary, wage, commission or other compensation due by said employer to such employee or employees and shall, on or before the last day of the month following the close of each calendar quarter, make a return and pay to the Tax Administrator the amount so deducted.
(c) Such employer, whether a resident employer or a non-resident employer, in collecting the tax shall be deemed to hold the same until payment is made by such employer to the Municipality, as a Trustee for the benefit of the Municipality, and any such tax collected by such employer from his employees, shall until the same is paid to the Municipality be deemed a trust fund in the hands of such employer.
(Ord. 2586. Passed 12-15-03.)
(d) All employers shall withhold the taxes levied by this ordinance on the amount of qualifying wages as defined in Section 3121(a) of the Internal Revenue Code, adjusted as provided in Ohio R.C. 718.03, generally the Medicare Wage Box on Form W-2. Where the Medicare Wage Box is not the largest figure on the W-2, the employer shall file a written explanation.
(e) Wage Reconciliation Forms (W-3) shall be filed by no later than February 28 following the close of the calendar year.
(f) In addition to the wage reporting requirements of this section, any person, firm or corporation 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 City when the services were performed in the City. 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 payment 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. (Ord. 2645. Passed 2-28-05.)
(g) Employers who do not maintain a permanent office or place of business in the City of Crestline, but who are subject to tax on net profits attributable to the City of Crestline, under the method of allocation provided for in the Ordinance, are considered to be employers within the City of Crestline and subject to the requirement of withholding.
(h) Employers for limited engagements, who make payment for services at said engagement, as set forth below, shall, for the purposes of the collection of the income tax, be required to withhold, report, and pay over to the Tax Administrator the municipal income tax at the current rate on the gross amount so paid on completion of the engagement, said reports to be on forms approved by the Tax Administrator. Employers for limited engagements includes:
(1) Any person who employs or contracts for the services of any entertainer, entertainment act, sports event, promotional booth, special event, band, orchestra, rock group, or theatrical performance; or
(2) Any person who, acting as a promoter, booking agent, or employer, engages the services of, or arranges the appearance of any entertainer, entertainment act, sports event participant, band, orchestra, rock group, or theatrical performance.
(i) Every contract on behalf of the City for works or improvements of the City shall contain the following provisions:
The contractor further agrees that all City income taxes due or payable under Chapter 181 of the Crestline Code of Ordinances shall be withheld by the contractor pursuant to Section 181.05 and further agrees to supply the Income Tax Department with a list of its subcontractors’ names, addresses, Social Security or Federal ID numbers, and a listing of the service each subcontractor will perform, prior to beginning contract work.
(j) An individual, association, C corporation or other entity engaged in the business of construction work and who will perform construction work in the City of Crestline shall obtain a tax account number, issued by the Income Tax Department, prior to beginning construction work. The Income Tax Department shall also issue a Certificate of Registration. Failure to possess a valid Certificate shall be cause for suspension of work by the Safety Service Director prior to the construction work commencing and/or during the performance of the construction work. Proof of possession of a valid Certificate shall be necessary to commence or resume suspended construction work. The Certificate of Registration may be revoked by the Income Tax Department for failure by the contractor to remain current in the filing of required tax documents or for failure to remain current in the required payment of taxes. The contractor further agrees to supply the Income Tax Department with a list of its subcontractors’ names, addresses, Social Security or Federal ID numbers, and a listing of the service each subcontractor will perform, prior to beginning construction work.
(Ord. 2676. Passed 10-24-05.)