191.05 COLLECTION AT SOURCE.

   Each employer who employs within the City one or more persons on a salary, wage, commission, third party sick pay or other compensation basis, excluding exempted incomes set forth in Section 191.14, shall deduct at the time of the payment of such salary, wage, commission, third party sick pay or other compensation, the tax on the qualifying wages due by such employer to each such employee and shall make a return and pay to the Finance Director the amount of taxes so deducted as follows:

   (a)   In monthly payments to be made not later than ten days following the last day of each month during which tax has been withheld or required to be withheld, or

   (b)   So long as the taxes withheld by an employer for the City during the measurement period are less than $100 per month, payments may be made quarterly on or before the last day of the month following the end of each quarter, subject to the approval of the Finance Director. The Finance Director may revoke the approval of quarterly filing and payments whenever the Finance Director has reason to believe that the conditions for granting such authorization have changed, were judged incorrectly, were not met, or when it is in the best interest of the City to do so. Notice of withdrawal shall be made in writing, and, in such case, the employer must begin to file in accordance with this section.

   (c)   Upon the determination and finding by the Director that monthly or quarterly payments would result in a delay that might jeopardize collection of tax withheld, he 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 Director notifies the employer to the contrary.

   (d)   Each employer shall file a withholding tax reconciliation showing the sum total of all compensation paid all employees, the portion of which, (if any) was not subject to withholding along with an explanation for same, and the portion of which was subject to withholding, together with the amount of such withholdings remitted. Such return shall include information concerning each employee from whom the City tax was withheld, showing the name, address, zip code and social security number of each such employee, the total amount of compensation paid during the year and the amount of City tax withheld. If the total tax withheld from any employee’s wages, includes tax withheld and remitted to another municipality, the amount of that withheld tax shall be separately shown on the return of information to the City concerning each employee. The withholding tax reconciliation shall be filed by each employer on or before February 28 following the end of such calendar year.

   (e)   In addition to the wage reporting requirements of this section, any person required by the Internal Revenue Service to report on Form 1099-Misc. payments to individuals not treated as employees for services performed shall also report such payments to the City when the services were performed in the City. The information may be submitted on a listing, and shall include the name, address, and social security number (or federal identification number), and the amount of the payment made. Federal form(s) 1099 may be submitted in lieu of such listing. The information shall be filed annually on or before February 28 following the end of such calendar year.

   (f)   Employers having 100 or more employee records, as mentioned in this section are required to submit the required information on magnetic media. Such filing must be done on a format provided by the City. A penalty of $50 per day, after due date, will be assessed for noncompliance.

   Such return shall be on a form prescribed and furnished by the Director. Such employer, in collecting the tax, shall be deemed to hold the same as trustee for the benefit of the City until payment is made by such employer to the City and any such tax collected by the employer from his employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.

   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.

(Ord. 04-253. Passed 12-21-04.)