§ 151.06  COLLECTION AT SOURCE.
   (A)   Each employer having withholdings liability of less than $500 per quarter and located within, or doing business within, the municipality, who employs one or more persons on a salary, wage, commission, or other compensation basis shall deduct at the time of the payment of such salaries, wages, commissions, or other compensation, the tax of 1.25% of the gross salaries, wages, commissions, or other compensation due by such employer to each such employee and shall, on or before the last day of April, July, October, and January of each year, after the effective date of this chapter, make a return and pay to the Tax Commissioner the amount of taxes so deducted during the preceding calendar quarter.  Such return shall be on a form or forms prescribed by or acceptable to the Tax Commissioner and shall be subject to the rules and regulations prescribed therefor by the Tax Commissioner.
   (B)   Each employer having withholdings liability exceeding $500 per quarter and located within, or doing business within the municipality, who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct at the time of payment of such salaries, wages, commissions or other compensation the tax of 1.25% of the gross salaries, wages, commissions, or other compensation due by said employer to each employee and shall, on or before the fifteenth day of each month of each year, after the effective date of this chapter, make a return and pay to the Tax Commissioner the amount of taxes so deducted during the preceding month.
   (C)   Each 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. Each employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such tax, in fact, has been withheld.
   (D)   It shall be the responsibility, jointly and severally, of the president and treasurer of each corporation required to withhold the tax from wages of its employees under this section, to see that all such taxes so withheld are paid to the municipality in accordance with the provisions of this section. In the event taxes withheld by a corporation from the salaries of its employees are not paid to the municipality in accordance with the provisions of this section, the president and treasurer of such corporation shall each be criminally liable under the provision of § 151.12 hereof.
   (E)   On or before February 28 of each year, each employer shall file a withholding return, on a form or forms prescribed by and obtainable from the Tax Commissioner, setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year, and the amount of tax withheld from the listed employees, and such other information as may be required by the rules and regulations adopted by the Tax Commissioner.
   (F)   Provided, however, that 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. However, such domestic servants shall be responsible for filing and paying their own returns and taxes.
   (G)   One hundred fifty dollar de minimus rule.
      (1)   If not currently required to withhold city income tax, a nonresident employer, agent of such an employer, or other payer that is not situated in the city shall not be required to deduct and withhold taxes from the taxable income of an individual unless the total amount of tax required to be deducted and withheld for the city on account of all of the employer's employees or all of the payer's payees exceeds $150 for a calendar year.
      (2)   If the total amount of tax required to be deducted and withheld on account of all of the nonresident employer's employees or all of the other payer's payees exceeds $150 for a calendar year, the employer, agent of such employer, or other payer must deduct and withhold taxes in that calendar year and in each ensuing year even if the amount required to be deducted and withheld in each of those ensuing years is $150 or less, until such time that the tax so deducted and withheld is $150 or less for three consecutive years.
      (3)   A nonresident employer, agent of such an employer, or other payer that is not situated in the city and is exempt from withholding pursuant to division (G) of this section shall report all taxable income paid to its employees or agents working in the city on an annual basis. This report shall be due on or before April 30 of each year, and shall include a calculation of the total compensation earned in the city by all employees during the preceding calendar year.
(Am. Ord. 7751, passed 12-28-99; Am. Ord. 8021, passed 12-28-00; Am. Ord. 8882, passed 12-9-03; Am. Ord. 9062, passed 11-23-04; Am. Ord. 2015-082, passed 7-27-15)