(a) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
EMPLOYER.
Includes a person that is a related member to or of an employer.
FIXED LOCATION.
A permanent place of doing business in this state, such as an office, warehouse, storefront, or similar location owned or controlled by an employer.
PRINCIPAL PLACE OF WORK.
A. The fixed location to which an employee is required to report for employment duties on a regular and ordinary basis. If the employee is not required to report for employment duties on a regular and ordinary basis to a fixed location,
PRINCIPAL PLACE OF WORK
means the worksite location in this state to which the employee is required to report for employment duties on a regular and ordinary basis. If the employee is not required to report for employment duties on a regular and ordinary basis to a fixed location or worksite location,
PRINCIPAL PLACE OF WORK
means the location in this state at which the employee spends the greatest number of days in a calendar year performing services for or on behalf of the employee’s employer.
B. If there is not a single municipal corporation in which the employee spent the greatest number of days in a calendar year performing services for or on behalf of the employer, but instead there are two or more municipal corporations in which the employee spent an identical number of days that is greater than the number of days the employee spent in any other municipal corporation, the employer shall allocate any of the employee’s qualifying wages subject to subsection (b)(1)A. of this section among those two or more municipal corporations. The allocation shall be made using any fair and reasonable method, including, but not limited to, an equal allocation among such municipal corporations or an allocation based upon the time spent or sales made by the employee in each such municipal corporation. A municipal corporation to which qualifying wages are allocated under this section shall be the employee’s
PRINCIPAL PLACE OF WORK
with respect to those qualifying wages for the purposes of this section.
C. For the purposes of this section, the location at which an employee spends a particular day shall be determined in accordance with subsection (b)2. of this section, except that location shall be substituted for municipal corporation wherever municipal corporation appears in that division.
PROFESSIONAL ATHLETE.
An athlete who performs services in a professional athletic event for wages or other remuneration.
PROFESSIONAL ENTERTAINER.
A person who performs services in the professional performing arts for wages or other remuneration on a per-event basis.
PUBLIC FIGURE.
A person of prominence who performs services at discrete events, such as speeches, public appearances, or similar events, for wages or other remuneration on a per-event basis.
WORKSITE LOCATION
. A construction site or other temporary worksite in this state at which the employer provides services for more than 20 days during the calendar year.
WORKSITE LOCATION
does not include the home of an employee.
(b) (1) Subject to subsections (c), (e), (f) and (g) of this section, an employer is not required to withhold city income tax on qualifying wages paid to an employee for the performance of personal services in the city if the employee performed such services in the city on 20 or fewer days in a calendar year, unless one of the following conditions applies:
A. The employee’s principal place of work is located in the city; or
B. The employee performed services at one or more presumed worksite locations in the city. For the purposes of this division, “presumed worksite location” means a construction site or other temporary worksite in the city at which the employer provides or provided services that can reasonably be, or would have been, expected by the employer to last more than 20 days in a calendar year. Services can “reasonably be expected by the employer to last more than 20 days” if either of the following applies at the time the services commence:
1. The nature of the services are such that it will require more than 20 days of the services to complete the services; or
2. The agreement between the employer and its customer to perform services at a location requires the employer to perform the services at the location for more than 20 days.
C. The employee is a resident of the city and has requested that the employer withhold tax from the employee’s qualifying wages as provided in this subchapter.
D. The employee is a professional athlete, professional entertainer, or public figure, and the qualifying wages are paid for the performance of services in the employee’s capacity as a professional athlete, professional entertainer, or public figure.
(2) For the purposes of subsection (b)(1) of this section, an employee shall be considered to have spent a day performing services in the city only if the employee spent more time performing services for or on behalf of the employer in the city than in any other municipal corporation on that day. For the purposes of determining the amount of time an employee spent in a particular location, the time spent performing one or more of the following activities shall be considered to have been spent at the employee’s principal place of work:
A. Traveling to the location at which the employee will first perform services for the employer for the day;
B. Traveling from a location at which the employee was performing services for the employer to any other location;
C. Traveling from any location to another location in order to pick up or load, for the purpose of transportation or delivery, property that has been purchased, sold, assembled, fabricated, repaired, refurbished, processed, remanufactured, or improved by the employee's employer;
D. Transporting or delivering property described in subsection (b)(2)C. of this section, provided that, upon delivery of the property, the employee does not temporarily or permanently affix the property to real estate owned, used, or controlled by a person other than the employee’s employer; or
E. Traveling from the location at which the employee makes the employee’s final delivery or pick-up for the day to either the employee’s principal place of work or a location at which the employee will not perform services for the employer.
(c) If the principal place of work of an employee is located in another Ohio municipal corporation that imposes an income tax, the exception from withholding requirements described in subsection (b)(1) of this section shall apply only if, with respect to the employee’s qualifying wages described in that division, the employer withholds and remits tax on such qualifying wages to that municipal corporation.
(d) (1) Except as provided in subsection (d)(2) of this section, if, during a calendar year, the number of days an employee spends performing personal services in the city exceeds the 20-day threshold, the employer shall withhold and remit tax to the city for any subsequent days in that calendar year on which the employer pays qualifying wages to the employee for personal services performed in the city.
(2) An employer required to begin withholding tax for the city under subsection (d)(1) of this section may elect to withhold tax for the city for the first 20 days on which the employer paid qualifying wages to the employee for personal services performed in the city.
(e) (1) If an employer’s fixed location is the city and the employer qualifies as a small employer as defined in § 192.002 of this chapter, the employer shall withhold municipal income tax on all of the employee’s qualifying wages for a taxable year and remit that tax only to the city, regardless of the number of days which the employee worked outside the corporate boundaries of the city.
(2) To determine whether an employer qualifies as a small employer for a taxable year, the employer will be required to provide the Tax Administrator with the employer’s federal income tax return for the preceding taxable year.
(f) Subsections (b)(1) and (4) of this section shall not apply to the extent that the Tax Administrator and an employer enter into an agreement regarding the manner in which the employer shall comply with the requirements of this subchapter.
(Ord. 52-15, passed 11-4-2015) Penalty, see § 192.999