191.06 COLLECTION AT SOURCE.
(a) (1) Withholding by Employer. 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 when such salary, wage commission or other compensation is paid, allocated, apportioned, or set aside, the tax at the rate provided in Section 191.03 hereof on the qualifying wages, due by such employer to each such employee and shall, on or before the fifteenth day of the month following such withholding, make a return and pay to the Commissioner of Taxation the amount of taxes so deducted; except in the case where the employer's weekly withholding tax exceed four thousand dollars ($4,000), the taxes so deducted shall be due by the last day of the week following such withholding. The return shall be on a form or forms prescribed by or acceptable to the Commissioner or Taxation and shall be subject to the rules and regulations prescribed by the Commissioner. 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. The Commissioner of Taxation may require withholding payments to be made by electronic funds transfer or by any other electronic payment remittance method.
(2) So long as the taxes withheld by such employer for the City during the measurement period are less than three hundred dollars ($300.00) per month, payments may be made quarterly on or before the fifteenth last day of the month following the end of the quarter, subject to the approval of the Commissioner of Taxation. The Commissioner may revoke the approval of quarterly filing and payments whenever he has reason to believe that the conditions for granting such authorization have changed, were judged incorrectly, were not met or when it is in the best interest of the City to do so. Notice of the withdrawal shall be made in writing and, in such case; the employer shall begin to file in accordance with this section.
(b) 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 respect to whose stock the option has been issued.
(c) Employer considered as Trustee. Such employer in collecting the 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 employees shall, until the tax is paid to the City, be deemed a trust fund in the hands of such employer.
(d) 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.
(1) Any person who is required to withhold tax from qualifying wages shall pay all such tax to the City in accordance with the provisions of this section. In the event tax withheld from the qualifying wages of employees are not paid to the City in accordance with the provisions of this section, all officers, members, managers, employees, and trustees having control or supervisor of or charged with the responsibility of filing the return and making payment are jointly and severally personally liable for the tax not returned or paid to the City as well as any related interest and penalties, and are also liable under the provisions of Section 191.12 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.
(2) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by the City or by the employer's exemption from the requirement to withhold the tax.
(3) The failure of an employer to remit to the City the tax withheld and shown as withheld on the employee's W-2 year end statement 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.
(4) 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, though such residence is in the City, but such employee shall be subject to all of the requirements of this chapter.
(e) 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 City 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 City 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. The Commissioner of Taxation may require the filing of such reconciliations and employee information by alternate media.
(f) 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 City when the services were performed in the City. 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. If the 1099-Misc includes compensation not attributable to services performed in the City, a separate listing must also be included which indicates the portion attributable to services performed inside the City. The information shall be filed annually on or before February 28 following the end of such calendar year.
(Ord. 2015-11-101. Passed 11-18-15.)