(A) Withholding by employer. Each employer within, or doing business within, the municipality who employs one or more persons on a wage, commission, or other compensation basis shall deduct, when such salary, wage, commission or other compensation is paid, allocated or set aside, the tax as set forth in § 91.03 on the qualifying wages due by the employer to each employee.
(1) 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. Nothing in this section prohibits an employer from withholding tax on a basis greater than qualifying wages.
(2) Monthly payments of taxes withheld shall be made by an employer if the taxes deducted in the prior calendar year were more than $6,000 or if such deductions otherwise normally exceed $500 per month. Such payments shall be received by the Municipality no later than the last day of the month following the close of each calendar month.
(3) All employers not required to make monthly payments of taxes withheld shall make quarterly payments no later than the last day of the month following each calendar quarter.
(4) Such return shall be on a form or forms prescribed by or acceptable to the Tax Commissioner and shall be subject to the rules and regulations prescribed therefore by the Tax Commissioner.
(B) Employer considered as trustee. Each 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. Each employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such tax has in fact been withheld.
(C) Corporate officers' personal liability. Any person who is required to withhold tax from qualifying wages shall pay all such tax to the Municipality in accordance with the provision of this section. In the event taxes withheld from the qualifying wages of employees are not paid to the municipality in accordance with the provisions of this section, all officers, members, managers, employees, and trustees having control or supervision of or charged with the responsibility of filing the return and making payment are jointly and severally personally and criminally liable for the tax not returned or paid to the Municipality as well as any related interest and penalties, and are also liable under the provisions of § 91.10 hereof. The dissolution, termination, or bankruptcy of a corporation, limited liability company, or business trust does not discharge an officer's, member's, manager's, employee's, or trustee's liability for a failure of the corporation, limited liability company, or business trust to file returns or pay said taxes.
(D) An employer is not required to make any withholding with respect to an individual's disqualifying disposition of an incentive stock option if, at the time of the disqualifying disposition, the individual is not an employee of the corporation with request to whose stock the option has been issued.
(E) (1) 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.
(2) The failure of an employer to remit to the municipal corporation the tax withheld relieves the employee from liability for that tax unless the employee colluded with the employer in connection with the failure to remit the tax withheld.
(F) Withholding return; list of employees. Each employer shall file a withholding tax reconciliation showing the sum total of all compensation paid all employees, the portion of which, (if any) was not subject to withholding along with an explanation for same, and the portion of which was subject to withholding, together with the amount of such withholdings remitted. Such return shall include information concerning each employee from whom the municipal tax was withheld, showing the name, address, zip code and social security number of each such employee, the total amount of compensation paid during the year and the amount of municipal tax withheld. If the total tax withheld from any employee included tax withheld and remitted to another municipality, the amount of same shall be separately shown on the return of information to the Municipality concerning each employee. The withholding tax reconciliation shall be filed by each employer on or before February 28 following the end of such calendar year.
(G) In addition to the wage reporting requirements of this section, any person 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 municipality when the services were performed in the municipality. 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 the payments 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.
(H) Domestic employees. No person shall be required to withhold the tax on the qualifying wages, commissions, other compensation, and other taxable income paid domestic employees employed exclusively in or about such person's residence. However, such domestic employees shall be responsible for filing and paying their own returns and taxes.
(Ord. 16-1974, passed 3-4-74; Am. Ord. 28-1974, passed 6-3-74; Am. Ord. 50-A-1984, passed 12-3-84; Am. Ord. 30-1990, passed 10-15-90; Am. Ord. 13-1994, passed 5-2-94; Am. Ord. 01-1998, passed 2-2-98; Am. Ord. 23-2000, passed 12-18-00; Am. Ord. 01-2007, passed 1-16-07)