(a) Each employer within or doing business within a municipality who employs one or more persons on a salary, wage, commission, income, or other compensation basis shall, at the time of the payment, deduct the tax of a minimum of one per cent (1%) from the salary, qualifying wages, commissions, income or other compensation earned or received by residents of this municipality regardless of where such compensation was earned, and shall deduct the tax of a minimum of one per cent (1%) from the salary, qualifying wages, commissions, income or other compensation earned or received within this municipality by nonresidents.
(Ord. 2008-30. Passed 11-11-08.)
(b) Each such employer shall, on or before the last 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. However, any employer who, in a prior year, deducted tax in the amount of twelve hundred dollars ($1200) or deducted one hundred dollars ($100) per month in the current calendar year, is required to make a return and remit the tax withheld to the Administrator on or before the 15th day of the month following the closing of the preceding month. Said returns shall be on a form or forms prescribed by or acceptable to the Administrator, or may be submitted by using the Ohio Business Gateway, as described in Ohio R.C. 718.051, including any amendments or successor provisions thereto. Such employer shall be liable for the payment of the taxes hereby deducted and withheld.
(Ord. 2013-07. Passed 6-10-13.)
(c) 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.
(d) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by this municipality, or by the employer’s exemption from the requirement to withhold the tax.
(e) The failure of an employer to remit to this municipality 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.
(f) Compensation deferred before the effective date of this amendment 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.
(g) Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to this municipality, as a Trustee for the benefit of this municipality and any such tax collected by such employer from his employees, shall, until the same is paid to this municipality, be deemed a trust fund in the hands of such employer.
(h) On or before January 30th following any calendar year, such employer shall file with the Administrator an annual reconciliation return, along with an information return for such employee from whom income taxes for this municipality has been or should have been withheld, setting forth the name, address, and Social Security number of the employee, the total amount of compensation paid during the year, and the amount of municipal income tax withheld from the employee with the municipality for which said tax was withheld identified. The information return shall also include all of the information required to be reported by the employer to the Internal Revenue Service on a W-2 form. At the time of filing the annual reconciliation return, the employer shall pay any amounts deducted or which should have been deducted during the preceding year, but which was not remitted. The reconciliation form shall be obtained from the Administrator.
(i) All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to the IRS for individuals or businesses to whom or which they have non-employee compensation shall furnish copies of the said 1099 forms to the Administrator or in lieu thereof, a list containing the same information as required by the IRS on the 1099 forms on or before the due date for such 1099 forms as established by the IRS.
(j) The failure of any employer to receive or procure a return or other required form shall not excuse the employer from preparing any information return or withholding tax returns, or from filing such forms or from paying the taxes due
(k) Every employer shall retain all records necessary to compute withholding taxes due to this municipality for a period of 5 (five) years from the date the reconciliation form, W-2 form, and 1099 forms are filed.
(l) Delinquent payments received from an employer for withholding taxes are subject to interest and penalties as set forth in Section 181.10 and shall be applied first to penalties due, then to interest due, and then to taxes due.
(Ord. 2008-30. Passed 11-11-08.)