(a) Employee Withholding. In accordance with this Chapter and the rules and regulations prescribed by the Administrator, each employer within or doing business with the City of Milford shall deduct City income tax from income, salary, qualifying wage, vacation pay, sick pay, commissions, bonuses, tips, severance pay, incentive pay, deferred compensation, supplemental unemployment pay, third party sick pay or any other compensation at the time of payment of same to its employees, and at the rate provided in Section 181.03
hereof. The employer shall, on or before the fifteenth day of the month following such withholding, make a return and pay to the Administrator the amount of taxes so deducted. The return shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed 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.
(b) So long as the taxes withheld by an employer for the City of Milford during previous tax year averaged less than three hundred dollars ($300.00) per month, payments may be made quarterly on or before the last day of the month following the end of the quarter, subject to the approval of the Administrator. The Administrator may revoke the approval of quarterly filing and payments whenever he 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) If the taxes withheld by an employer for the City during the previous tax year averaged three hundred dollars ($300) per month or more, payments must be made on a monthly basis and shall be made on or before the fifteenth day of the month following the end of the month for which taxes were withheld.
(d) The officer or employee of such employer having control or supervision or charged with the responsibility of withholding the tax and making the payment, shall be personally liable for failure to withhold or pay the tax, penalties, or interest due as required herein. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of such business to withhold the tax or pay taxes, penalties, or interest due.
(e) The payment of taxes withheld shall be on a form obtainable from the Administrator, or on any acceptable generic form. 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 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. 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.
(f) 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 ordinance.
(g) On or before February 28 of each year, each employer shall file a withholding tax reconciliation for the preceding calendar year, showing the sum total of all compensation paid to 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 concurring each employee from whom the City tax was withheld, or should have been withheld, setting forth the name, address and social security number of each such employee, the total amount of compensation paid during the year, the amount of the City tax withheld and such other information as may be required by the rules and regulations established by the Administrator. In lieu of submitting forms W-2 for each employee, an alternative method of reporting must be approved by the Administrator, or his duly authorized agent.
(h) On or before February 28 of each year all individuals, businesses, employers, brokers or other who engage persons, either on a fee or commission basis or as independent contractors and not employees (those who are not subject to withholding) must provide the City Income Tax Department with copies of all 1099 Miscellaneous Income Forms and/or a list of names, addresses, Social Security numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.
(i) No person shall be required to withhold the tax on salaries, wages, commissions, other compensation and other income paid domestic workers employed by such person exclusively in or about such person's residence, even though the residence is in the city, but such employee shall be subject to all of the requirements of this chapter.
(Ord. 04-346. Passed 1-6-04.)