(A) Every employer making payment of compensation to an employee shall deduct and withhold upon the payment of the compensation the license tax imposed under § 110.02 of this chapter.
(B) Every employer required to deduct and withhold occupational license taxes under this section shall report for the quarterly periods ending March 31, June 30, September 30 and December 31 of each year the wages or compensation from which occupational license taxes have been so withheld on or before the last day of the month following the end of each such quarter, and shall make the payment required to be made on account of such employee withholding of occupational license taxes on or before the time required for the filing of the quarterly returns.
(C) Notwithstanding the provisions of subsection (B) of this section, each employer for which the aggregate Metro Government, mass transit trust fund, and school boards occupational license taxes required to be withheld from all employee wages and compensation for any one of the preceding four quarters shall have exceeded the sum of $3,000 shall remit the occupational license taxes required to be withheld from employees monthly on or before the fifteenth day of the month following the month in which the wages or compensation shall have been paid by the employer, or (in the case of deferred compensation subject to the occupational license taxes imposed hereunder) on the fifteenth day of the month following the month in which such deferred compensation is deemed to have been earned by the employee.
(D) Every employer shall also deduct from each employee who receives non-cash fringe benefits taxable for federal income tax purposes, at the time at which the receipt of such non-cash benefits by the employee is required to be reported by the employer for federal income tax purposes, the occupational license tax arising from the employee’s receipt of such compensation; and the employer shall remit to the Commissioner with the deposit made for the period in which such non-cash benefits are so reported the occupational license tax due on such non-cash fringe benefits. The employer may report the value of fringe benefits provided during any period commencing no earlier than November 1 of any year as having been paid by the employer and received by the employee during the following year provided that the reporting for occupational license tax purposes is consistent with the reporting for federal income tax purposes. Occupational license tax shall be paid on the non-cash fringe benefits subject to federal income tax as provided by the Internal Revenue Code and as provided by the Code of Federal Regulations in effect for the licensee’s taxable year; and such non-cash fringe benefits shall be valued for purposes of the imposition of the occupational license tax as provided by the Internal Revenue Code and as provided by the Code of Federal Regulations in effect for the licensee’s taxable year.
(E) Every employer shall, annually on or before February 28th of each year make a return to the Commission in which is set forth the name, residence and social security number of each employee of said employer employed during the preceding calendar year, giving the amount of wages or compensation earned during such preceding year by each such employee and the amount of occupational license taxes withheld pursuant to this chapter together with a form prescribed by the Commission reconciling the sum total of compensation paid and taxes withheld as disclosed by the information return with the aggregate amount previously reported on the quarterly returns and with aggregate remittances paid for the calendar year, and such other pertinent information as the Commission may require.
(F) Every employer shall furnish each employee a statement, on or before January 31 of each year, showing the amount of compensation earned and the occupational license tax deducted and paid by said employer during the preceding calendar year.
(G) Each employer, in the event of overpayment by the employer of the employee occupational license tax, shall upon request by the employee and may on its own initiative apply to the Commission for a refund on behalf of the employee. Provided, however, that no employer shall be required to make an application hereunder on behalf of an employee if the employer remits the overpayment directly to the employee and unless a refund of $1 or more is due that employee.
(H) Unless written application for refund or credit is received by the Commission from the employer or employee within two years from the date the overpayment was made, no refund or credit shall be allowed. Where there has been an overpayment of license tax under this chapter, a refund or credit shall be made to the employer only to the extent that the amount of the overpayment was not deducted and withheld by the employer under this section.
(I) An employee who has compensation attributable to activities performed outside the Louisville Metro area, based on time spent outside the Louisville Metro area, whose employer has withheld and remitted to the Commission the occupational license tax on the compensation attributable to activities performed outside the Louisville Metro area, may file for a refund within two years of the date prescribed by law for the filing of a return. The employee shall provide a schedule and computation sufficient to verify the refund claim, and the Commission shall confirm with the employer the percentage of time spent outside the Louisville Metro area and the amount of compensation attributable to activities performed outside the Louisville Metro prior to approval of the refund.
(J) Every employer who is notified of or discovers an underpayment by the employer of the employee occupational license tax, shall correct the previously submitted returns which had shown the under-withholding and shall remit payment of the employee occupational license tax not previously paid, together with any applicable penalty and interest.
(K) Every employer who fails to withhold or pay to the Commission any sums required by this article to be withheld and paid shall be personally and individually liable to the Commission for any sum or sums withheld or required to be withheld in accordance with the provisions of this section.
(L) The president, vice-president, secretary, treasurer or any other person holding an equivalent corporate office of any business entity subject to this section shall be personally and individually liable, both jointly and severally, for any occupational license tax required to be withheld from compensation paid or payable to one or more employees of the business entity, and neither the corporate dissolution or withdrawal of the business entity from Louisville Metro area, nor the cessation of holding any corporate office, shall discharge that liability; provided that the personal and individual liability shall apply to each and every person holding the corporate office at the time the occupational license tax becomes or became obligated. No person shall be personally and individually liable under this subsection unless such person had authority to collect, truthfully account for, or pay over the occupational license tax imposed by this chapter at the time that the taxes imposed by this chapter become or became due.
(M) Not withstanding subsections (K) and (L) of this section, every employee receiving compensation subject to the occupational license tax shall be personally liable for any amount due.
(N) The Commission shall have a lien upon all the property of any employer who fails to withhold or pay over to the Commission sums required to be withheld under this section. If the employer withholds, but fails to pay the amounts withheld to the Commission, the lien shall commence as of the date the amounts withheld were required to be paid to the Commission. If the employer fails to withhold, the lien shall commence at the time the liability of the employer is assessed by the Commission.
(O) If for any reason the occupational license taxes due hereunder have not been withheld by the employer in whole or in part, the employee is required to file an annual return on or before April 15th with the Commission and to pay the occupational license tax due on all compensation earned which has not been subject to withholding, together with any applicable interest and penalty. The employee shall provide the original copy of the statement furnished to him or her by his or her employer showing all of the compensation earned by him or her, wherever employed, during the period for which such return is made. In addition to the compensation earned by him or her, such return shall show such other pertinent information as may be required by the Commission. Each person making a return required by this section shall at the time of filing the appropriate return pay to the Commission the amount of license tax due under this subsection; provided, that any portion of the license tax deducted by the employer shall be credited on the return and only the balance, if any, shall be due and payable at the time of filing said return.
(P) Payments to be made by electronic fund transfer.
(1) Third party payroll reporting agents whose aggregate payment of occupational license taxes deducted and withheld pursuant to § 110.05(B) on behalf of multiple employers exceeds $25,000 or who report and pay for more than 25 individual accounts shall remit all payments by electronic fund transfer.
(2) The electronic fund transfer shall be made on or before the occupational license tax is due.
(3) The Revenue Commission may waive the requirement that an employer remit the payment by electronic fund transfer if the employer is unable to remit funds electronically.
(1994 Jeff. Code, §110.03) (Jeff. Ord. 10-1986, adopted and effective 6-24-1986; Jeff. Am.Ord. 13-1989, adopted and effective 6-28-1989; Jeff. Am. Ord. 1-1994, adopted and effective 1-4-1994; Lou. Metro Am. Ord. No. 218-2007, approved 10-15-2007; Lou. Metro Am. Ord. No. 110-2008, approved 6-30-2008; Lou. Metro Am. Ord. No. 66-2016, approved 5- 27-2016; Lou. Metro Am. Ord. No. 120-2019, approved 8-26-2019) Penalty, see § 110.99