(a) Each employer within or doing business within the City who employs one or more persons on an income, salary, wage, commission or other compensation basis shall deduct at the time of the payment of such income, salary, wage, commission or other compensation, the tax provided for in Section 191.03 on the gross income, salaries, wages, commissions or other compensation due by such employer to each employee and shall make a return and pay to the City Income Tax Division, the amount of taxes so deducted, on a form or forms prescribed by or acceptable to the Income Tax Division and subject to the rules and regulations prescribed therefor by Council, as follows:
(1) An employer who deducts taxes amounting to one thousand dollars ($1,000) or less per calendar quarter, based on the previous tax year's quarterly average, shall, on or before the last day of the month following each calendar quarter, make the return required by this Section and pay the amount of taxes so deducted during the preceding calendar quarter.
(2) An employer who deducts taxes amounting to more than one thousand dollars ($300) per calendar quarter, based on the previous tax year's quarterly average, shall, on or before the last day of each month, make the return required by this Section and pay the amount of taxes so deducted during the preceding calendar month.
(b) Every employer required to deduct and withhold tax from the compensation of an employee under this chapter shall furnish to each employee with respect to the compensation paid by such employer to such employee during the calendar year, on or before January 31 of the succeeding year, or, if his employment is terminated before the close of such calendar year, within thirty days from the date on which the last payment of compensation was made a written statement as prescribed by the Finance Director showing the amount of compensation paid by the employer to the employee, the amount deducted and withheld as tax, and such other information as the Finance Director prescribes.
(c) The failure of an employer to withhold taxes required by this section as required by law does not relieve an employee from the liability for the tax.
(d) Each employer required to deduct and withhold taxes is liable for the payment of that amount required to be deducted and withheld, whether or not such taxes have in fact been withheld and such amount shall be deemed to be a special fund in trust for the City until such time as same is paid to the City.
(e) In addition to the returns required to be filed and payments required to be made under subsection (d) hereof, every employer required to deduct and withhold taxes shall file, not later than February 28 of each year, an annual return covering the aggregate amount deducted and withheld during the entire preceding year. The employer shall make such annual report to each employee and to the Finance Director, of the compensation paid and tax withheld as the Finance Director by regulation shall prescribe.
(f) Each employer shall file with the returns required by this section the following items of information on employees for whom withholding is required under this chapter:
(1) The full name of each employee and his address.
(2) The social security number of each employee.
(3) The total amount of compensation paid before any deductions to employee for the period for which such return is made.
(4) The employer's Federal identification number.
(5) The amount of the tax imposed by this chapter withheld from the compensation of the employee for the period for which such return is made. The Finance Director may upon good cause extend the period for filing any notice or return required to be filed under this section, and may adopt rules relating thereto. If the extension results in an extension of time for the payment of the amounts withheld with respect to which the return is filed, the employer shall pay at the time the amount withheld is paid, an amount of interest computed from the time that such amount was originally required to be paid to the time of actual payment at the rate as provided in Section 191.10(a).
(6) In addition to all other interest charges and penalties imposed, all amounts of taxes withheld or required to be withheld and remaining unpaid after the time such amounts are required to be paid shall bear interest on the amount unpaid, in addition to the amount withheld, at the rate as provided in Section 191.10(a).
(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.
(h) 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 and addresses of the subcontractors. The subcontractors shall be responsible for all income tax employer requirements under this chapter.
(Ord. 09-10. Passed 4-6-09.)