(a) Each employer within or doing business in the City who employs one or more persons, full-time or part-time, on an income, salary, qualifying wage, commission or other compensation basis, shall deduct, at the time of payment of income, salaries, qualifying wages, commissions or other compensation, the amount of tax levied by Section 181.03 on the gross income, salaries, qualifying wages, commissions or other compensation due by the employer to any employee and shall make a return and pay the amount of taxes so deducted to the Tax Commissioner within the applicable time period provided by subsection (a) (1) or (2) hereof:
(1) An employer who deducts taxes amounting to less than three hundred dollars ($300) per calendar quarter, based on the previous tax year's quarterly average, shall, on or before April 15, July 31, October 31, and January 31 of each year, make the return required by this Section and pay the amount of taxes so deducted during the preceding calendar quarter;
(2) An employer who deducts taxes amounting to three hundred dollars ($300.00) or more per calendar quarter, based on the previous tax year's quarterly average, shall, on or before the fifteenth (15th) day of each month, make the return required by this Section and pay the amount of taxes so deducted during the preceding calendar month. Such return shall be on a form prescribed by or acceptable to the Tax Commissioner and shall be subject to the rules and regulations prescribed therefore by the Tax Commissioner. Such employer shall be liable for payment of the tax required to be deducted and withheld, whether or such tax has in fact been withheld.
(b) Such employer, in collecting such tax, shall be deemed to hold the same, until payment is made by such employer to the City, as a trustee for the benefit of the City and any such tax collected by such employer from his or her employees, shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
(c) The officer or employee having control or supervision, or charged with the responsibility of withholding the tax, filing the return and/or making the payment, shall be personally liable for the failure to file the return or pay the tax due as required herein. The dissolution, bankruptcy, or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of such business to file a return or pay taxes due.
(d) (1) On or before February 28 following any calendar year in which such deductions have been made by any employer, such employer shall file with the Tax Commissioner, on the form prescribed by the Tax Commissioner, an information return for each employee from whom City income tax has been withheld, clearly showing the name and address of the employee, the social security number of the employee, the total amount of compensation paid during the year and the amount of City income tax withheld from such employee
(2) On or before February 28 of each year all individuals, businesses, employers, brokers or other who engage persons, either on a fee or commission basis or as independent contractors and not employees (those who are not subject to withholding) must provide the Tax Commissioner with a Form DW-3 (reconciliation form), copies of all 1099 Miscellaneous Income Forms and/or a list of names, addresses, Social Security numbers or federal identification numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.
(e) For the convenience of employers, the information return referred to in subsection (d) hereof may be made in one of two ways at the election of the employer, as follows:
(1) Employers using FormW-2 furnished commercially may submit a copy of such form W-2, provided that the copy furnished to the City clearly shows the information required in subsection (d) hereof. For employers paying commissions, Form 1099 will be submitted in lieu of Form W-2.
(2) Where the furnishing of such information will create a distinct hardship the employer, upon written request to the Tax Commissioner may be permitted to furnish a list of employees subject to the tax, which list shall show each employee's full name, correct address, total qualifying wages paid during the year and the amount of City income tax withheld. Such list may be compiled on any mechanical presently used by the employer. The employer's name must be indicated on each sheet, each sheet must be numbered and the total number of sheets comprising the complete report shall be indicated on the first page.
(3) The total qualifying wages to be reported for each employee shall be for the full twelve calendar months of the year or such portion thereof as the employee reported on was employed.
(f) All employers that provide any contractual service within the City, and who employ subcontractors in conjunction with that service shall, prior to commencement of the service, provide the City the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax employer requirements under this chapter.
(Ord. 7087. Passed 11-10-09.)