(a) (1) Each employer shall at the time of the payment of any salary, wage, commission or other compensation, deduct the tax of one and one quarter percent (1.25%) beginning November 3, 1987, of the gross salaries, wages, commissions or other compensation due by the employer to his employees who are subject to the provisions of this chapter. In making such deduction at the time of payment, the employer shall compute the tax to the nearest full cent so that mills of five or more shall be increased to the next full cent and mills less than five shall be dropped. No person shall be entitled to a refund merely because such rounding off of the tax results in an apparent overpayment based on his total earnings. Each employer shall, on or before the fifteenth day of each month, make a return and pay to the Superintendent, the tax withheld during the preceding month. Provided, however, the Superintendent shall have the authority to approve the filing of returns and payment of the tax withheld on a quarterly basis. In such case, the employer shall, on or before the fifteenth day of each month following the calendar quarters ending March 31, June 30, September 30 and December 31, make a return and pay to the Superintendent the tax withheld during the preceding calendar quarter. Such approval for quarterly filings and payments may be withdrawn by the Superintendent when it is to the best interests of the City to do so. The Superintendent shall provide by regulations, the manner in which such approval is to be granted or withdrawn.
(2) The 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.
(b) Such employer in collecting such tax, shall be deemed to hold the same, until payment is made by such employer to Germantown, as a trustee for the benefit of Germantown and any such tax collected by such employer from his employees shall, until the same is paid to Germantown, be deemed a trust fund in the hands of such employer.
(c) No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed by him exclusively in or about such person's residence, even though such residence is in Germantown, but such employee shall be subject to all of the requirements of this chapter.
(d) On or before January 31 of each year beginning with the year 1972, each employer shall file a withholding return on a form prescribed by and obtainable upon request from the Superintendent, setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the rules and regulations adopted by the Superintendent.
(e) All employers that provide any contractual service within the Municipality and who employ subcontractors in conjunction with that service, shall provide the Municipality the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(Ord. 01-68. Passed 1-7-02.)