(a) Each employer within or doing business within Hebron who employs one or more persons on a salary, wage including vacation and sick pay, commission or other compensation basis, shall deduct at the time of the payment of such salary, wage, commission or other compensation, the tax imposed by this chapter of the gross salaries, wages, commissions or other compensation due by such employer to such employee.
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.
(b) Such employer, when withholding such tax shall be deemed to hold the same until payment is made by such employer to Hebron as a trustee for the benefit of Hebron and shall identify and set aside such tax withheld in a separate account on his records.
(c) (1) On and after January 1, 1997, each employer shall, on or before the 15th day of the following month, make a return to the Administrator and at the same time pay into the Village Treasury the amount of tax withheld during the preceding month, except as provided in subsection (2) below. Subject to the approval of the Board of Review the provisions of this subsection (c)(1) may be waived and the employer may file in accordance with subsection (2) below.
(2) When the amount so withheld by an employer amounts to less than ten dollars ($10.00) per month, the employer may make returns on a calendar quarterly basis. Such employer shall, on or before the 15th day of each month following the calendar quarters ending March 31, June 30, September 30, and December 31, make a return and pay into the Village Treasury the full amount of taxes withheld for the preceding calendar quarter.
(d) However, 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.
(e) Each employer who maintains a place of business in Hebron and another branch within the metropolitan area of Hebron, must also withhold the tax from employees residing in Hebron but working at the employer’s metropolitan area branch even though the payroll records and place of payment are outside Hebron.
(f) Each employer, on or before February 28, unless written request for thirty (30) days extension is made to and granted by the Administrator, following any calendar year in which such deductions have been made, or should have been made by an employer, shall file with the Administrator an information return (Hebron Withholding Statement of Wages Paid, and Hebron Income Tax Withheld), for each employee from whom income tax has been or should have been withheld showing the name and address of the employee, the total amount of salaries, wages, commissions and other compensation paid such employee during the year and the amount of Village income tax withheld from each employee. In addition, each Form (W-2) shall show the employer’s name, address, and Village account number. An adding machine tape or list of amount of tax withheld and taxable wages as shown on the W-2s shall be attached with the number of W- 2s shown. Any return not so filed shall be subject to a late filing penalty of five dollars ($5.00) per day for each and every day they remain in violation to a maximum of three hundred dollars ($300.00). In addition to the late filing penalty, any return which remains unfiled more than two months after its due date shall be subject to the penalties provided under Section 181.99.
(g) In addition to the above wage reporting requirements, any person paying money to an individual or independent contractor shall report such payment. The information should be reported on Federal Form 1099 and filed yearly with the Tax Administrator on or before February 28th. Any return not so filed shall be subject to a late filing penalty of five dollars ($5.00) per day for each and every day they remain in violation to a maximum of three hundred dollars ($300.00). In addition to the late filing penalty, any return which remains unfiled more than two months after its due date shall be subject to the penalties provided under Section 181.99.
(h) Manager’s Obligation.
(1) Every manager is deemed to be a trustee of this Municipality in collecting and holding the tax required under this chapter to be withheld, and the funds so collected by such withholding are deemed to be trust funds.
Every manager is liable directly to this Municipality for payment of such trust, whether actually collected by such employer or not. Any tax deducted and withheld is to be considered paid to this Municipality, whether or not the employer actually remits the tax to this Municipality, for purposes of determining employee payments or credits.
(2) All managers shall be personally liable to the extent to the tax, interest and penalty, jointly and severally, for failure to file the employer’s return or to pay the employer’s tax, interest and penalty as required under this chapter.
(3) No change in structure by an employer, including a fundamental change, discharges its managers from liability for the employees’ or manager’s failure to remit funds held in trust, to file a tax return or to pay taxes.
(Ord. 1445-97. Passed 11-19-97; Ord. 22-04. Passed 10-13-04.)