(A) In accordance with rules and regulations prescribed by the Tax Administrator, each employer within or doing business within the city who employs one or more persons on a salary, wage, commission or other compensation basis, shall deduct (on a calendar-year basis) at the time of payment of such salary, wage, commission or other compensation, the tax of 1% per annum of the gross salaries, wages, commissions or other compensation due by such employer to such employee, and shall, on or before the last day of the month following the month in which the tax was deducted, make a return and pay to the city the amount of taxes so deducted, except that if said withholding amounts to less than $100 per month, payment may be made quarterly, as required by the Tax Administrator. Such returns shall be on a form or forms prescribed by or acceptable to the Tax Administrator and shall be subject to the rules and regulations prescribed therefor by the Tax Administrator. 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. The Tax Administrator, for good cause, may require immediate returns and payment to be submitted to his or her office.
(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 or her employees shall, until the same is paid to the city, be deemed a trust fund in the hands of such employer; provided, however, that no person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed exclusively in or about such person’s residence.
(C) On or before January 31 of each year, each employer shall file a withholding return in a form prescribed by the Tax Administrator, setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year, the amount of tax withheld from his or her employees and such other information as may be required by the rules and regulations adopted by the Tax Administrator.
(D) On or before February 28 of each year, each individual, business or business entity who files forms 1099-MISC with the Internal Revenue Service must also file a copy of such return with the City Income Tax Division.
(Prior Code, § 880A.05) (Ord. 92-11, passed 7-1-1991)