(a) (1) Each employer within or doing business within the City of Lancaster, Ohio who employs one or more persons on a salary, wage, commission or other compensation basis shall, at the time of payment thereof, deduct the tax of 1.6 percent from the gross salaries, wages, commissions or other compensation earned by Lancaster residents regardless of where such compensation was earned and shall deduct the tax of 1.6 percent from the salaries, wages, commissions or other compensation earned within the City of Lancaster, Ohio by non-residents;
(Ord. 73-03. Passed 12-22-03.)
(2) On or before the last day of February following any calendar year such employer shall file with the Administrator an information return (annual reconciliation of tax withheld) for each employee from whom Lancaster Income Tax has been, or should have been withheld, showing the name, address, and social security number of the employee, the total amount of compensation paid during the year and the amount of Lancaster Income Tax withheld, as well as other municipal taxes withheld from such employee. No extension of time to file shall be allowed.
(3) On or before the last day of February following any calendar year, in addition to the above wage reporting requirements, any person or business entity paying money to an individual or independent contractor for work done or services performed in Lancaster shall report such to the Administrator by providing copies of federal form 1099.
(b) Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to the City of Lancaster, Ohio as a Trustee for the benefit of the City of Lancaster, Ohio and any such tax collection by such employer from his employees shall, until the same is paid to the City of Lancaster, Ohio be deemed a trust fund in the hand of such employer. Every employer or officer of a corporation is deemed to be a Trustee for the City of Lancaster in collecting and holding the tax required under this ordinance to be withheld. The officer or employee having control or supervision of, or charged with the responsibility of, filing the report and making payment is personally liable for failure to file the report or pay the tax due as required by this section. The dissolution of a corporation or other cessation of business does not discharge an officer’s or employee’s liability for prior failure of the corporation to file returns or pay tax due.
(c) (1) Beginning January 1, 2001 a non-resident employer with no principal place of employment situated in Lancaster is not required to withhold Lancaster municipal income tax from remuneration paid to employees of the employer until the collective tax liability of the employees initially exceeds $150.00.
(2) When the collective tax liability exceeds $150.00, the employer is required to begin withholding the appropriate municipal income tax for Lancaster on behalf of all employees doing business in Lancaster, and the withheld tax shall be remitted to Lancaster in accordance with subsections (a) and (b) hereof.
(3) Once the collective tax liability has exceeded $150.00, the employer must withhold municipal income tax for Lancaster for subsequent years, even if the liability in subsequent years does not exceed $150.00. However, if the withholding tax liability for each of three (3) consecutive years (subsequent to the year in which the employer became liable for withholding such income tax for Lancaster) does not exceed $150.00, the employer will be considered as not having performed work in Lancaster in regard to future withholding tax liability, and will again be subject to subsection (c)(1).
(Ord. 38-00. Passed 11-27-00.)
(Ord. 38-00. Passed 11-27-00.)