890.07   PAYMENT OF TAX.
   (a)   Payment of Tax on Filing of Return.
      (1)   The taxpayer making a return shall, at the time of the filing thereof, pay to the Administrator the amount of taxes shown as due thereon, provided that where any portion of the tax so due has been deducted at the source pursuant to the provisions of subsection (b) hereof or where any portion of such tax has been paid by the taxpayer pursuant to the provisions of subsection (c) hereof or whether an income tax has been paid to another municipality, credit for the amount so paid in accordance with Section 890.09 shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing such return.
      (2)   A taxpayer who has overpaid the amount of tax to which the City is entitled under the provisions of this chapter may have such overpayment applied against any subsequent liability hereunder or, at his election indicated on the return, such overpayment (or part thereof) shall be refunded, provided that no additional taxes or refunds of less than one dollar ($1.00) shall be collected or refunded.
(Ord. 68-27. Passed 7-23-68.)
   (b)   Collection at Source.
      (1)   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, wages, wages, commission or other compensation, the tax of 2% per year of the gross salary, wages, commissions or other compensation due by the employer to each employee and shall, on or before the twentieth day of the month following the close of each calendar quarter, make a return and pay to the Administrator the amount of taxes so deducted, subject to the provisions of subsections (c), (d) and (e) hereof. Such returns shall be on a form 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 the payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.
(Ord. 82-O-8. Passed 6-22-82.)
      (2)   Such employer in collecting such 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.
(Ord. 68-27. Passed 7-23-68.)
      (3)   Such employer who deducts the tax in an amount of one hundred dollars ($100.00) or more per month shall, on or before the twentieth day of the following month, pay to the Administrator the amount of taxes so deducted on a monthly basis, beginning with the first month the employer exceeds one hundred dollars ($100.00) in taxes withheld.
(Ord. 82-O-8. Passed 6-22-82.)
      (4)   Such employer who makes such payments on a monthly basis for the first two months of a calendar quarter shall pay such tax deducted for the third month of a calendar quarter at the regular time for filing the employer's quarterly return of income tax withheld.
      (5)   Such payments shall be on a form furnished by or obtainable from the Administrator upon request, setting forth the amount of tax deducted for the month. A receipted copy of such form shall be returned to the employer to be attached to and filed with the employer's quarterly return of income tax withheld.
      (6)   No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about such person's residence, even though such residence is in the City, but such employee shall be subject to all of the requirements of this chapter.
      (7)   Any business or employer that subcontracts any portion of work on a construction project (the "contractor") to another individual or entity (the "subcontractor") which fails to pay all taxes imposed or forward all taxes required to be withheld under the provisions of this chapter shall pay to the City the full amount of taxes owed plus interest as outlined in Section 890.13(a).  Any subcontractor which fails to pay all taxes imposed or forward all taxes required to be withheld under the provisions of this chapter shall also be liable under this section.  The individual or entity that retained the contractor shall also be liable under this section, and so forth up to the owner or developer of the construction project.
      (8)   The City shall not issue any type of permit to a business or employer that has not completed a Withholding and Business Registration Form and a Registration of Contractor's Form as prescribed by the Administrator.
      (9)   As part of the registration process, contractors shall complete a notarized statement, as provided by the City, setting forth: (1) the names of all individuals to be employed on the project; (2) the names of all independent contractors/subcontractors to be used on the project; (3) the number of days estimated that each independent contractor/ subcontractor will work on the project; and (4) all steps taken to ensure that all employees, or subcontractors that are sole proprietorships or partnerships, have the legal right to work in the United States of America.
      (10)   If, for whatever reason, a subcontractor starts to perform work for a contractor on the project that was not identified during the initial registration process, within three calendar days after the subcontractor starts performing work for the contractor, the contractor shall submit the notarized statement required in division (b)(9) with respect to the subcontractor.
      (11)   The City shall not give final approval, which may include withholding of any retainer amount due, for work performed on any construction project undertaken by the City to any individual or entity working on said project until presented with documentation from the City's tax authority that all City income tax due are current.
      (12)   If a contractor violates any part of this section, it shall be subject to a fine in the amount of one thousand dollars ($1,000.00).
      (13)   The determination of independent contractor/subcontractor or employee status for purposes of this section and this Chapter 890 shall be the same as those factors used by the Internal Revenue Service in its code and regulations.
   (c)   Declarations of Income Not Collected at Source. Every person, who anticipates any taxable income which is not subject to subsection (b) hereof or who engages in any business, profession, enterprise or activity subject to the tax levied in Section 890.03, shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity, together with the estimated tax due thereon, if any, provided that if a person's income is wholly from wages from which the tax will be withheld and remitted to the City in accordance with subsection (b) hereof, such person need not file a declaration.
   (d)   Filing of Declaration.
      (1)   The declaration required in subsection (c) hereof shall be filed on or before April 30 of each year during the effective period set forth in Section 890.03(b) or within four months of the date the taxpayer becomes subject to the tax for the first time.
      (2)   Those taxpayers reporting on a fiscal year basis shall file a declaration within four months after the beginning of each fiscal year or period.
   (e)   Form of Declaration.
      (1)   The declaration required in subsection (c) hereof shall be filed upon a form furnished by or obtainable from the Administrator, provided that credit shall be taken for City tax to be withheld from any portion of such income. In accordance with the provisions of Section 890.09, credit may be taken for tax to be paid or to be withheld and remitted to another taxing municipality.
      (2)   The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided in this section.
   (f)   Payment to Accompany Declaration. Such declaration of estimated tax to be paid to the City shall be accompanied by a payment of at least one-fourth of the estimated annual tax and at least a similar amount shall be paid on or before the last day of the sixth, ninth and twelfth months after the beginning of the taxable year, provided that if an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates.
   (g)   Annual Return. On or before the last day of the fourth month of the year following that for which such declaration or amended declaration was filed, an annual return shall be paid therewith in accordance with the provisions of subsection (a) hereof.
   (h)   Extensions. The Administrator may extend the time of filing any return required, of making any payment or performing any other act required by this section for a period not to exceed six months beyond the original due date.
(Ord.68-27. Passed 7-23-68; Ord. 2007-O-03.  Passed 4-10-07.)