(a) Each employer within or doing business within the City and who employs one or more persons on an income, qualifying wage, commission or other compensation basis shall deduct, at the time of the payment of income, qualifying wage, commission or other compensation, the tax of one percent (1%) of the income, qualifying wages, commissions or other compensation due by such employer to the employee and shall, on or before the last day of the month following the close of each calendar quarter, make a return and pay to the Director the amount of taxes so deducted. The returns shall be on a form or forms prescribed by or acceptable to the Director and shall be subject to the rules and regulations prescribed therefore by the Director. Each 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.
(b) Such employer in collecting such 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 or her employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
(c) 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, but such servants shall be subject to the provisions of this chapter.
(d) On or before February 28th of each year, each employer shall file a withholding return setting forth the name, address, and social security number of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the Director.
(e) On or before February 28 of each year all individuals, businesses, employers, brokers or others who engage persons, either on a fee or commission basis or as independent contractors and not employees (i.e., those who are not subject to withholding) must provide the City Income Tax Department with copies of all 1099 Miscellaneous Income Forms and/or a list of names, addresses, Social Security numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person for any services provided in the city.
(f) All employers that provide any contractual service within the City, and who employ subcontractors in conjunction with that service shall, prior to commencement of the service, provide the City the names, addresses and federal identification numbers of the subcontractors. The subcontractors shall be responsible for all income tax employer requirements under this chapter.
(g) The officer or the employee having control or supervision of or charged with the responsibility of withholding the tax, and/or 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 limited partnership does not discharge an officer's or employee's liability for a prior failure of the corporation or limited partnership to file returns or pay the tax due.
(Ord. 184-08. Passed 11-20-08.)