(a) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the Municipality shall deduct, at the time of the payment of salary, wages, commissions or other compensation, the tax at the rate imposed in Section 890.03 per year, on the gross salaries, wages, commissions or other compensation due by the employer to the employee, and shall, on or before the last day of each month, make a return and pay to the Administrator the amount of taxes so deducted during the previous month. However, if the amount of tax so deducted by any employer in any one month is less than one hundred dollars ($100.00), the employer may defer the filing of a return and payment of the amount deducted until the last day of the month following the end of the calendar quarter in which such month occurred.
(b) Returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. The 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.
(c) Such employer, in collecting such tax, shall be deemed to hold the same, until payment is made by such employer to the Municipality, as a trustee for the benefit of the Municipality, and any such tax collected by such employer from his or her employees, shall, until the same is paid to the Municipality, be deemed a trust fund in the hands of such employer.
(d) No person shall be required to withhold the tax on wages or other compensation paid to domestic servants employed by him or her exclusively in or about such person's residence, even though such residence is in the Municipality, but such employees shall be subject to all the requirements of this chapter.
(e) A nonresident individual who works in the Municipality 12 or fewer days per year shall be considered an occasional entrant, and shall not be subject to the Municipality's municipal income tax for those 12 days. For purposes of the 12-day calculation, any portion of a day worked in the Municipality shall be counted as one day worked in the Municipality.
(f) Beginning with the thirteenth day, the employer of said individual shall begin withholding the Municipality's income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the Municipality in accordance with the requirements of this chapter. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the Municipality by the individual for the first 12 days.
(g) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate tax to the Municipality.
(h) The 12-day occasional entry rule does not apply to entertainers or professional athletes, their employers or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
(i) Every manager shall be deemed to be a trustee of the City in collecting and holding the tax required under this chapter to be withheld, and the funds so collected by such withholding shall be deemed to be trust funds. Every manager shall be liable directly to the City for payment of such trust, whether actually collected by such employer or not. Any tax deducted and withheld shall be considered paid to the City, whether or not the employer actually remits the tax to the City, for purposes of determining employee payments or credits.
(j) All managers shall be personally liable to the extent of 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.
(k) No change in structure by an employer, including a fundamental change, shall discharge 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. 79-55. Passed 2-19-80; Ord. 05-14. Passed 2-2-05; Ord. 06-65. Passed 6-7-06.)