(a) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the City shall deduct, at the time of the payment of such salary, wage, commission or other compensation due from the employer to the employee, the amount of tax of two percent (2%) per year on the gross salaries, wages, commissions or other compensation and on the tips or gratuities reported to the employer by each employee for social security or Federal income tax purposes 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 Administrator the amount of taxes so deducted subject to the provisions of subsections (c), (d) and (e) hereof. The returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator.
(b) 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. Every employer or officer of a corporation is deemed to be a trustee for this Municipality in collecting and holding the tax required under this section to be withheld and the funds so collected by such withholdings are deemed to be trust funds. The officer or employee having control or supervision or charged with the responsibility of filing the return and making payment is personally liable for failure to file the return or pay the tax due as required by this section. The officer or employee shall be personally liable for the tax he failed to return or pay as well as any related interest and penalties. The dissolution of a corporation does not discharge an officer’s or employee’s liability for a prior failure of the corporation to pay the tax due.
(c) Such employer who deducts the tax of one hundred dollars ($100.00) or more per month, shall pay to the Administrator before the twentieth of the following month, the amount of taxes so deducted on a monthly basis beginning with the first month the employer exceeds one hundred dollars ($100.00) in taxes withheld.
(d) Payments shall be on a form or forms furnished by or obtainable upon request from the Administrator, setting forth the amount of tax deducted for the month. A receipted copy of such form shall be returned to the employer to be attached to and filed with the employer's quarterly return of income tax withheld.
(e) No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about such person's residence, even though such residence is in the City, but such employees shall be subject to all of the requirements of this chapter.
(f) In addition to the above wage reporting requirements, any person who compensates an individual, contractor, or subcontractor shall report such payment. The information required includes the name, address and social security (or federal identification) number, and the amount of compensation. Federal Form 1099 may be submitted in lieu of such listing. The information must be filed annually with the Income Tax Department of the City on or before February 28.
(Ord. 2003-148. Passed 11-24-03.)
(h) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by a municipal corporation or by the employer’s exemption from the requirement to withhold the tax and/or the employer’s failure to transmit withheld taxes does not relieve the employee of liability. (Ord. 2004-091. Passed 9-14-04.)
(i) The Tax Administrator may require each employer, on or before the last day of February of each year, to notify the Administrator of the name, address and social security number of each employee for whom the employer deferred compensation, other than qualified deferred compensation during the previous calendar year. The notification shall also include the amount so deferred for each employee. (Ord. 2003-148. Passed 11-24-03.)