182.051 COLLECTION AT SOURCE; WITHHOLDING TAXES FROM QUALIFYING WAGES.      
   (A)    Each employer, agent of an employer, or other payer located or doing business in the City of Milford shall withhold an income tax from the qualifying wages earned and/or received by each employee in City of Milford. The amount of income tax withheld is equal to the qualifying wages earned by the employee in the Municipality multiplied by the applicable rate of one percent (.01) of the Municipality's income tax, except for qualifying wages for which withholding is not required under Section 182.052 of this Chapter or division (D) or (F) of this section.
   (A)   (1)    An employer, agent of an employer, or other payer shall deduct and withhold the tax from qualifying wages on the date that the employer, agent, or other payer directly, indirectly, or constructively pays the qualifying wages to, or credits the qualifying wages to the benefit of, the employee.
   (A)   (2)    In addition to withholding the amounts required under division (A)(1) of this section, an employer, agent of an employer, or other payer may also deduct and withhold, on the request of an employee, taxes for the municipal corporation in which the employee is a resident.
   (B)   (1)    Except as provided in division (B)(2) of this section, an employer, agent of an employer, or other payer shall remit to the Tax Administrator of the Municipality the greater of the income taxes deducted and withheld or the income taxes required to be deducted and withheld by the employer, agent, or other payer, along with any report required by the Tax Administrator to accompany such payment, according to the following schedule:
   (B)   (1)   (a)    Taxes required to be deducted and withheld shall be remitted monthly to the Tax Administrator if the total taxes deducted and withheld or required to be deducted and withheld by the employer, agent, or other payer on behalf of the municipal corporation in the preceding calendar year exceeded two thousand three hundred ninety-nine ($2,399.00) dollars, or if the total amount of taxes deducted and withheld or required to be deducted and withheld on behalf of the Municipality in any month of the preceding calendar quarter exceeded two hundred ($ 200.00) dollars.
Payments under division (B)(1)(a) of this section shall be made to the Tax Administrator not later than fifteen days (15) after the last day of each month for which the tax was withheld.
   (B)   (1)   (b)    Any employer, agent of an employer, or other payer not required to make payments under division (B)(1)(a) of this section of taxes, required to be deducted and withheld shall make quarterly payments to the Tax Administrator not later than the fifteenth last day of the month following the last day of each calendar quarter, subject to the approval of the Administrator. The Administrator may revoke the approval of quarterly filing and payments whenever the Administrator believes that the reasons or 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. A Notice of Withdrawal shall be made in writing and, in such case, the employer must begin to file in accordance with this section.
    (B)   (1)   (c)    Notwithstanding the provisions of Section (B)(1)(a) or (B)(1)(b) of this section, taxes may be deducted, and the withholding remitted semimonthly to the Tax Administrator if the total taxes deducted and withheld or required to be deducted and withheld on behalf of the City of Milford in the preceding calendar year exceeded $11,999.00 or if any month of the preceding calendar year exceed $ 1,000.00. Payment under division (B)(1)(c) of this section shall be made to the Tax Administrator not later than one of the following:
   (B)   (1)   (c)   (i)    If the taxes were deducted and withheld or required to be deducted and withheld during the first fifteen (15) days of a month, the third banking day after the fifteenth day of that month;
   (B)   (1)   (c)   (ii)    If the taxes were deducted and withheld or required to be deducted and withheld after the fifteen (15) day of a month and before the first day of the immediately following month, the third banking day after the first day of the immediately following month.
   (B)   (2)    If the employer, agent of an employer, or other payer is required to make payments electronically for the purpose of paying federal taxes withheld on payments to employees under Section 6302 of the Internal Revenue Code, 26 C.F.R. 31.6302-1, or any other federal statute or regulation, the payment shall be made by electronic funds transfer to the Tax Administrator of all taxes deducted and withheld on behalf of the City of Milford. The payment of tax by electronic funds transfer under this division does not affect an employer's, agent's, or other payer's obligation to file any return as required under this section.
   (B)   (3)    An employer, agent of an employer, or other payer shall make and file a return showing the amount of tax withheld by the employer, agent, or other payer from the qualifying wages of each employee and remitted to the Tax Administrator. A return filed by an employer, agent, or other payer under this division shall be accepted by the Tax Administrator and the Municipality as the return required of an non-resident employee whose sole income subject to the tax under this Chapter is the qualifying wages reported by the employee's employer, agent of an employer, or other payer, unless the Municipality requires all resident individual taxpayers to file a tax return under Section 182.091 of this Chapter,
   (B)   (4)    An employer, agent of an employer, or other payer is not required to withhold the municipal income tax 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 either the corporation with respect to whose stock the option has been issued or of such corporation's successor entity,
   (B)   (5)   (a)    An employee is not relieved from liability for a tax by the failure of the employer, agent of an employer, or other payer to withhold the tax as required under this Chapter or by the employer's, agent's, or other payer's exemption from the requirement to withhold the tax.
   (B)   (5)   (b)    The failure of an employer, agent of an employer, or other payer to remit to the Municipality the tax withheld relieves the employee from liability for that tax unless the employee colluded with the employer, agent, or other payer in connection with the failure to remit the tax withheld.
   (B)   (6)    Compensation deferred before June 26, 2003, is not subject to any municipal corporation income tax or municipal income tax withholding requirement to the extent the deferred compensation does not constitute qualifying wages at the time the deferred compensation is paid or distributed.
   (B)   (7)    Each employer, agent of an employer, or other payer required to withhold taxes is liable for the payment of that amount required to be withheld, whether or not such taxes have been withheld, and such amount shall be deemed to be held in trust for the Municipality until such time as the withheld amount is remitted to the Tax Administrator.
The return or payment of taxes withheld shall be on a form or forms accepted by or prescribed by the Administrator, RITA, or an acceptable generic form.
   (B)   (8)    On or before the last day of February of each year, an employer shall file a withholding reconciliation return for the preceding calendar year with the Tax Administrator listing:
   (B)   (8)   (a)    The names, addresses, and social security numbers of all employees from whose qualifying wages tax was withheld or should have been withheld for the Municipality during the preceding calendar year;
   (B)   (8)   (b)    The amount of tax withheld, if any, from each such employee, the total amount of qualifying wages paid to such employee during the preceding calendar year;
   (B)   (8)   (c)    The name of every other municipal corporation for which tax was withheld or should have been withheld from such employee during the preceding calendar year;
   (B)   (8)   (d)    Any other information required for federal income tax reporting purposes on Internal Revenue Service form W-2 or its equivalent form with respect to such employee;
In lieu of submitting Forms W-2 for each employee, an alternative method must be approved by the Administrator, or his duly authorized agent.
   (B)   (8)   (e)    Other information as may be required by the Tax Administrator or his duly authorized agent. Such required Information shall include the following:
   (B)   (8)   (e)   (i)    All employers that provide any contractual service within the municipality, and who employ subcontractors in conjunction with that service, shall provide the Municipality with the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding and filing requirements under this ordinance.
   (B)   (8)   (e)   (ii)    All individuals, businesses, employers, brokers, or others who engage persons, either on a fee or commission basis or as an independent contractor and not employers (those who are not subject to withholding) must provide the City Income Tax Department with copies of all Forms 1099 Miscellaneous Forms and/or a list of names, addresses, social security numbers and total amount of earnings, payments, bonuses, commissions and or fees paid to each person when the annual reconciliation form is filed.
   (B)   (9)    The officer or the employee of the employer, agent of an employer, or other payer with control or direct supervision of or charged with the responsibility for withholding the tax or filing the reports and making payments as required by this section, shall be personally liable for a failure to withhold the tax, to file a report, or pay the tax, penalties, or interest due as required herein by this section. The dissolution bankruptcy, or reorganization of any such an employer, agent of an employer, or other payer does not discharge the officer's or employee's liability for a failure of such business or employer, agent of an employer, or other payer to withhold the tax, file returns or pay any taxes, penalties, or interest due.
   (B)   (10)    An employer is required to deduct and withhold municipal income tax on tips and gratuities received by the employer's employees and constituting qualifying wages, but only to the extent that the tips and gratuities are under the employer's control. For the purposes of this division, a tip or gratuity is under the employer's control if the tip or gratuity is paid by the customer to the employer for subsequent remittance to the employee, or if the customer pays the tip or gratuity by credit card, debit card, or other electronic means.
   (B)   (11)    The Tax Administrator shall consider any tax withheld by an employer at the request of an employee, when such tax is not otherwise required to be withheld by this Chapter, to be tax required to be withheld and remitted for the purposes of this section.
(Ord. 18-1379. Passed 6-19-18.)