(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 salary, wages, commission or other compensation, the tax of two and eighty-five one hundredths percent (2.85%) per annum of the income, salaries, wages, commissions or other compensation due by the employer to an employee, or 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 twentieth day of the month following the close of each calendar quarter, make a return and pay the Administrator the amount of taxes so deducted, subject to the provisions of subsections (c), (d) and (e) hereof. Such returns shall be on a form or forms prescribed by or acceptable to the Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not the taxes have in fact been withheld.
(Ord. 150-1983. Passed 8-1-83; Ord. 200-1994. Passed 8-22-94; Approved by Voters 11-8-94.)
(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 employees, shall, until the tax is paid to the City be deemed a trust fund in the hands of such employer.
(c) If the taxes withheld by an employer for the city during the previous tax year averaged one hundred dollars ($100.00) or more per month, the employer shall remit payment of the withheld taxes to Euclid on or before the twentieth day of the month following the month for which the taxes were withheld.
(d) Authorization for any employer to remit taxes quarterly under this section may be withdrawn by the Administrator, should the Administrator determine that the employer is not in compliance with the withholding requirements and/or other requirements of this chapter. The employer shall then be required to submit monthly deposits.
(e) Such payments shall be on a form or forms furnished by or obtainable from the Administrator upon request, 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.
(f) All employers that provide any contractual service within the City, and who employ subcontractors in conjunction with that service, shall provide the City the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax employer requirements under this chapter.
(g) On or before February 28th of each year, each employer shall file a withholding return setting forth the name, address, and social security number of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his or her employees and such other information as may be required by the Administrator. All payments not subject to withholding shall be reported on a form required by the Administrator.
(h) On or before February 28th of each year all individuals, businesses, employers, brokers or others 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 City income tax department with copies of all 1099 miscellaneous income forms and/or a list of names, addresses, social security numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.
(i) No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him or her exclusively in or about such person's residence even though such residence is in the City but such employee shall be subject to all of the requirements of this chapter.
(Ord. 126-1969. Passed 6-2-69; Ord. 207-2009. Passed 12-7-09.)