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(A) This section applies only to persons receiving compensation both inside and outside the city because the occupational license tax is due only for gross wages earned inside the city limits, this section provides the formulas to calculate what fraction of a person's gross wages are subject to the occupational license tax.
(B) The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the city during the tax period by the employer or business entity for compensation, and the denominator of which is the total compensation paid or payable by the employer or business entity everywhere during the tax period. Compensation is paid or payable in the city based on the time the employee performs work or renders services within the city.
(C) When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the city, the license tax shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the city. The license tax shall be computed by obtaining the percentage which the compensation for work performed or services rendered within the city bears to the total wages and compensation paid or payable. In order for the city to verify the accuracy of a taxpayer's reported percentages under this subsection, the taxpayer shall maintain adequate records.
(Ord. 2017-1743, passed 8-24-17)