(A) The license fee is imposed on both residents and nonresidents of the city at the rate of 2% of all salaries, wages, commissions and other compensations earned for work done or services performed or rendered in the city.
(B) The following are subject to the license fee:
(1) Salaries, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered:
(a) As an officer, agent or employee, or both of a corporation (including a corporation or the first of non-profit class), joint stock association or joint stock company;
(b) As an officer, agent or employee (as distinguished from a partner or a member), or a partnership or any other form of unincorporated enterprise owned by one or more persons;
(c) As an agent employee (as distinguished from the proprietor) of a business, trade or profession, conducted by an individual owner;
(d) As an officer, agent or employee (whether elected or appointed, enlisted or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, section or unit of the state, of any of the political subdivisions, thereof, or those of any other state or commonwealth;
(e) As an officer, agent or employee (whether elected or appointed) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, section or unit of the United States Government or of a corporation created and owned or controlled by the United States Government or any of its agencies, or those of any foreign country or dependency except those enlisted or commissioned in the military service; and
(f) As an officer, agent or employee of any other entity.
(2) Wages, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property for services rendered, whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production or piece work rates.
(3) Commissions and fees received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered regardless of how computed or by whom paid. (If amounts received as a drawing account exceed the commissions on fees earned, the tax is payable on the amounts received.) If such commissions or fees are included in the gross receipts of a trade, business or profession regularly carried on by such individual and therefore subject to all license fees computed on the gross sales or gross income, they shall not again be separately taxed.
(4) Fees paid to a director or an officer of a corporation are subject to withholding as in the case of any other employee.
(C) Other compensations which will be treated as subject to withholding the license fee include the following:
(1) Tips received by waiters and others. Tips received are subject to the license fee and will be reported in the same manner as other earnings of an employee.
(2) Vacation or holiday benefits. Payments made to employees by an employer as vacation wages are subject.
(3) Separations payments. Payments made to employees by an employer at the time of voluntary or involuntary separation (dismissal) of the employee from the service of the employer, are to be regarded as subject to the license fee.
(D) The following money receipts are not deemed to be “salaries, wages, commissions and other compensations and gross sales and gross incomes” within the meaning of this chapter:
(1) Old age or retirement. Periodic payments, commonly recognized as old age or retirement pensions, made to persons retired from service after reaching a specified age or after a stated period of employment, are not subject to the license fee;
(2) Disability, sickness, accident benefit and unemployment compensation. Payments made to employees by an employer under a disability, sickness and accident plan, are not subject to the license fee, unemployment compensation payments by the state, or any other agency are not subject;
(3) Death benefits. Death benefits payable by an employer to the beneficiary of an employee or to his estate, whether payable in a single sum or otherwise, are not subject to the license fee; and
(4) Benefits arising under Worker’s Compensation Act. Amounts received by employees under the Worker’s Compensation Act, being KS Chapter 342 as compensation for a disability sustained during the course of employment, together with any amount of damages received by suit or agreement on account of such disability, are not subject to the license fee.
(E) In cases of individuals whose compensation is earned for services performed both within and without the city and who receive subject payments as set forth in the foregoing rules and regulations, they are subject to the license fee in the same proportion that services performed within the city bear to their total employment time.
(2002 Code, § 110.18) (Ord. 1994-C-2, passed 6-6-1994; Ord. 2018-3, passed 2-28-2018)