(a) Withholding by employer. Each employer within, or doing business within, the City who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct, when such salary, wage, commission or other compensation is paid, allocated, or set aside, the tax at the rate provided in 890 hereof on the qualifying wages due by such employer to each such employee and shall, on or before the fifteenth day of the month following such withholding, make a return and payment to the Superintendent of Taxation the amount of taxes so deducted. The return shall be on a form or forms prescribed by or acceptable to the Superintendent of Taxation and shall be subject to the Rules and Regulations prescribed by the Superintendent of Taxation. 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. Nothing in this section prohibits an employer from withholding tax on a basis greater than qualifying wages.
(b) An employer is not required to make any withholding with respect to an individual’s disqualifying disposition of an incentive stock option if, at the time of the disqualifying disposition, the individual is not an employee of the corporation with respect to whose stock the option has been issued. However, the employer is required to report the disposition in its Annual Withholding Return, including the name, address and social security number of the persons receiving the dispositions.
(c) (1) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by a municipal corporation or by the employer’s exemption from the requirement to withhold the tax.
(2) The failure of an employer to remit to the municipal corporation the tax withheld relieves the employee from liability for that tax unless the employee colluded with the employer in connection with the failure to remit the tax withheld.
(d) 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. Any such tax collected by such employer from his or her employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer. Each employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such tax, in fact, has been withheld.
(e) Withholding return; list of employees. 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 Municipal 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 Municipal tax withheld. If the total tax withheld from any employee included tax withheld and remitted to another municipality, the amount of same 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 or by March 31 if filing by electronic media, following the end of such calendar year.
(f) No person shall be required to withhold the tax imposed by this Chapter on the qualifying wages, commissions other compensation and other taxable income paid domestic servants employed by him or her exclusively in or about such person’s residence, even though such residence is in the City. However, such domestic servants shall be responsible for filing and paying their own returns and taxes.
(g) Any person who is required to withhold tax from qualifying wages shall pay all such tax to the City in accordance with the provisions of this section. In the event taxes withheld from the qualifying wages of employees are not paid to the City in accordance with the provisions of this section, all officers, members, managers, employees and trustees having control or supervision of or charged with the responsibility of filing the return and making payment are jointly and severally personally liable for the tax not returned or paid to the City as well as any related interest and penalties, and are also liable under the provisions of § 890.10 hereof. The dissolution, termination or bankruptcy of a corporation, limited liability company, or business trust does not discharge an officer’s member’s, manager’s, employee’s or trustee’s liability for a failure of the corporation, limited liability company, or business trust to file returns or pay said taxes.
(h) So long as the taxes withheld by an employer for the City during the measurement period are less than one thousand ($1,000.00) per month, payments may be made quarterly on or before the fifteenth day of the month following the end of each quarter subject to the approval of the Superintendent of Taxation. The Superintendent of Taxation may revoke the approval of quarterly filing and payments whenever the Superintendent of Taxation 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 cases, the employer must begin to file in accordance with this section.
(i) 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 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 payments 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.
(Ord. O2004-28, passed 4-6-2004; Am. Ord. O2010-77, passed 11-16-2010)