181.06 COLLECTION AT SOURCE.

   (a)   In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the City shall deduct at the time of the payment of such salary, wage, commission or other compensation, the tax of two percent (2%) on and after July 1, 1997 through December 31, 2010; and on and after January 1, 2011 through December 31, 2013 the tax of two and one-quarter percent (2 1/4%); and on and after January 1, 2014 the tax of two percent (2%); and on and after July 1, 2017 the tax of one and three-quarters percent (1- 3/4%) of the gross salaries, wages, commissions or other compensation due by the employer to the employee or the tips or gratuities reported to the employer by each employee for social security or federal income tax purposes and shall make a return and pay to the Administrator the amount of taxes so deducted on a monthly basis, due on the last day of the following month. The return shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. Such employer shall be liable for payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.

(Ord. 64-2010. Passed 7-22-10.)

   (b)   Such employer in collecting the 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 employees, shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.

   (c)   On or before March 1 of each year beginning with the year of 1981, each employer shall file a withholding return 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 his employees and such other information as may be required by the Administrator. All payments not subject to withholding shall be reported on a form required by the Administrator.

   (d)   The Administrator for good cause may require immediate returns and payments to be submitted to his or her office.

   (e)   The failure of any employer residing either within or outside this City, to collect the amounts prescribed herein, shall not relieve the employee from the payment of the tax in compliance with this chapter.

   (f)   All taxes due shall be paid to the City before the last day of the following month, providing the tax due is in the amount of one hundred dollars ($100.00) or more. Otherwise, payment of taxes shall be as follows:

      (1)   For three months ending March 31, on or before April 30;

      (2)   For three months ending June 30, on or before July 31;

      (3)   For three months ending September 30, on or before October 31;

      (4)   For three months ending December 31, on or before January 31.

   (g)   Upon determination and finding by the Tax Administrator that monthly or quarterly payments would result in a delay that may jeopardize collection of tax withheld, he or she may order that payment of the tax be made weekly, and such payment shall be made within seven days following the close of the period for which the jeopardy payment is made. Such an order shall be delivered to the taxpayer personally or by certified mail and remains in effect until the Tax Administrator notifies the employer to the contrary.

   (h)   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 chapter. The dissolution of a corporation does not discharge an officer's or employee's liability for a prior failure of the corporation to file returns or pay tax due.

   (i)   Exclusion: Compensation paid to an individual for personal services performed within the City, if the individual does not reside in the City, performs such personal service in the City on twelve (12) or fewer days in the calendar year, and, if the individual is an employee, the principal place of business or the individual’s employer is located outside the City. This section does not apply to professional entertainers, or professional athletes or to promoters of professional entertainment or sports events and their employees.

      (1)   A non-resident employer, agent of an employer, that is not located in the City, need not deduct and withhold taxes from the taxable income of an individual unless the total amount of tax required to be deducted and withheld for all employees exceeds one hundred fifty dollars ($150.00) for a calendar year.

      (2)   If the dollar amount referred to in the above paragraph is met, the City may require the employer or agent, to deduct and withhold taxes in each ensuing year even if the amount required to be deducted and withheld in each of these ensuing years is one hundred dollars ($100.00) or less, for a period of three (3) years.

         (Ord. 92-2002. Passed 1-9-03.)