(a) Withholding by employer. Each employer within, or doing business within, the municipality, who employs one or more persons on a salary, wage, commission or other compensation or other income basis shall deduct at the time of the payment of the salaries, wages, commissions or other compensations, or other income due by the employer to each employees the tax of 1%. Each employer shall, on or before the fifteenth date of each month, make a return in such detail as the Tax Commissioner may prescribe, and pay to the Commissioner the tax withheld during the preceding month. However, the Commissioner may, when authorized by rule of general application adopted by the Board of Review, approve the filing of returns and payment of the tax withheld on a quarterly basis if the total average monthly city tax withheld during the previous tax year was less than $300. The return shall be on a form or forms prescribed by or acceptable to the Tax Commissioner and shall be subject to the rules and regulations prescribed by the Tax Commissioner. Effective January 1, 2005, payments of withheld tax shall be deposited electronically, unless exemption from this requirement is given by the Tax Commissioner.
(b) Employer considered as trustee. Each employer in collecting the tax shall be deemed to hold the same, until payment is made by the employer to the municipality, as a trustee for the benefit of the municipality, and any tax collected by the employer from his or her employees shall, until the same is paid to the municipality, be deemed a trust fund in the hands of the employer. Each employee shall be liable for the payment of the tax required to be deducted and withheld, whether or not the tax, in fact, has been withheld.
(c) Employees’ listings. On or before February 28 of each year, each employer shall file a withholding return, on a form or forms prescribed by and obtainable from the Tax Commissioner, setting forth the names, addresses and Social Security numbers of all employees from whose compensation the tax was withheld during the preceding calendar year, and the amount of tax withheld from the listed employees and other information as may be required by the rules and regulations adopted by the Tax Commissioner.
(d) Contractors and subcontractors. All employers that provide any contractual service within the municipality, and who employ subcontractors in conjunction with that service, shall provide the municipality the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(e) Domestic servants. No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed exclusively in or about the person’s residence. However, domestic servants shall be responsible for filing and paying their own returns and taxes.
(Ord. 2004-154, passed 12-13-2004)