(A) It is the duty of each employer (as defined in § 110.01) who employs one or more persons on a salary, wage, commission or other compensation basis, to deduct at the time of the payment of such compensation, the license fee imposed by this chapter on such salary, wage, bonus, incentive payment, commission or other compensation due by the employer to the employees. The license fee shall be deducted by the employer from all compensation paid to employees for activities in the city. However, the mere fact that the license fee is not withheld will not relieve the employee of the responsibility of filing a return and paying the fee on the compensation received. A nonresident employer, who maintains an office in the city, or a business address in the city, or is otherwise doing business therein, or is subject to service of legal process therein, is subject to the withholding provisions of this action.
(B) Where an employee receives compensation for personal services rendered or performed partly within and partly outside the city, the withholding agent shall deduct and withhold that portion of the compensation which is earned within the city in accordance with the following rules of apportionment:
(1) If the licensee is a traveling salesperson, agent or other employee, whose compensation on the basis of commission depends directly upon the volume of business transacted by him or her, the deducting and withholding shall apply to that portion of the compensation earned by him or her bearing the same ratio to his or her total compensation as the volume of business transacted by him or her within the city bears to the total volume of business transacted by him or her.
(2) The deducting and withholding of personal service compensation of all other employees (including officers of corporations) shall apply to that portion of the personal service compensation of such employee bearing the same ratio to his or her total compensation as the total number of working days employed within the city bears to the total number of working days employed within and outside the city.
(3) If it is impossible to apportion the earnings as provided above because of the peculiar nature of the services of the employee or of the unusual basis of compensation, apportionment shall be made in accordance with the facts, and the fee shall be deducted and withheld accordingly. With respect to each such employee (or group of employees similarly or identically circumstanced), the employer shall furnish the City Clerk/Treasurer/Tax Collector a detailed statement of facts.
(4) The occasional entry into the city of an employee who performs the duties for which he or she is employed entirely outside the city, but enters the city for the purpose of reporting, receiving instructions, accounting and the like, incidental to his or her duties outside the city, shall not be deemed to take such employees out of the class of those rendering their services entirely outside of the city.
(C) An employer required to withhold the license fee (on compensation paid to an employee) may in determining the amount on which the fee is to be withheld:
(1) Ignore any amount allowed and paid by the employer to the employee for expenses necessarily and actually incurred by the employee in the actual performance of his or her services; or
(2) Deduct any amount necessarily incurred and expended by the employee in the actual performance of his or her services, for which expense fee is not to be or has not been reimbursed by the employer; provided, that in either case, such expense must be recognized by the federal and state authorities for income tax purposes and the employee shall furnish the employer, before the deduction is made.
(2002 Code, § 110.22) (Ord. 1994-C-2, passed 6-6-1994) Penalty, see § 110.99