890.06  COLLECTION AT SOURCE.
   (a)   Withholding by Employer.  Each employer, within or doing business within the City, JEDZ or JEDD who employs one or more persons on a salary, wage, commission or other compensation basis as defined in Section 890.02, shall deduct, when such salary, wage, commission or other compensation is paid, allocated, apportioned or set aside, the tax of 1.75% on the qualifying salaries, wages, commissions, bonuses, tips or other compensation due by such employer to each such employee. The employer shall, on or before the last day specified below in division (b) of this section, make a return and pay the Tax Administrator the amount of taxes so deducted and withheld. The 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)   (1)   Monthly payments of the taxes deducted (or required to be deducted) are to be made by an employer if the total taxes in the prior calendar year exceeded one thousand, one hundred and ninety-nine dollars ($1,199.00) or if the taxes during any month for the preceding quarter exceeded one hundred dollars ($100.00). Such payments shall be made to the City, JEDZ or JEDD on or before the fifteenth day after the end of each calendar month.
      (2)   Semi-monthly payments are effective January 1, 2006 of the taxes withheld are to be made by an employer if: (i) the total taxes deducted (or required to be deducted) in the prior calendar year were twelve thousand dollars ($12,000) or more; or (ii) the amount of taxes deducted for any month in the preceding quarter exceeded one thousand dollars ($1,000.00). Such payments shall be paid to the City, JEDZ or JEDD within five banking days after the fifteenth and last day of each month.
      (3)   All employers not required to make semi-monthly payments of taxes withheld under division (b)(1) hereof, shall make quarterly payments to City, JEDZ or JEDD no later than the last day of the month (April, July, October and January) following the end of each quarter of each year.
   (c)   Reconciliation and W-2s.  Each employer, on or before the last day of February each year, unless written request for 30 days extension is made to and granted by the Tax Administrator or his agent, following any calendar year in which such tax deductions have been made or should have been made by an employer, shall file with the Tax Administrator an information return known as Newark, JEDZ or JEDD Reconciliation of Tax Withheld with W-2 copies for each employee from whom income tax has been or should have been deducted and withheld, showing the Social Security number, name, address of the employee, the total gross amount of salaries, wages, commissions, prize moneys, tips, gratuities and any other gross compensation paid (or earned by) the employee during the year and the amount of City, JEDZ or JEDD income tax deducted and withheld from each employee. If the total tax withheld from any employee included tax withheld and remitted to another city/village, the amount of same shall be separately shown on the return of information to the City, JEDZ or JEDD concerning each employee. For the convenience of employers, the W-2/information return may be made in one of two ways as listed below. Those employers using Form W-2, furnished commercially, may submit a copy of such commercial Form W-2, provided that the copy furnished to the City, JEDZ or JEDD clearly shows the information required by this division (c).
      (1)   An employer using a commercial Form W-2 may submit a copy of such commercial Form W-2, provided that the copy furnished to the City, JEDZ or JEDD reports the information required by division (c) of this section.
      (2)   Where the furnishing of this W-2/information return, as indicated above, will create a distinct hardship, the employer, upon written request to the Tax Administrator, may be permitted to furnish a list of all employees subject to the tax, which list shall show the employee's full name, last known address, Social Security number, gross amount of compensation earned or paid during the year and the amount of City income tax withheld, as well as other municipal taxes withheld (identifying each municipality). Federal, FICA, State and local wages must be reported. The employer's name must be indicated on each sheet. Each sheet must be numbered and the total number of sheets that comprise the complete report shall be indicated on the first page.
      Effective with the withholding reconciliations for the year 1994, any annual withholding reconciliation, including employee W-2/information returns, not submitted on or before February 28 of each year, shall be subject to a penalty of twenty-five dollars ($25.00), effective March 1 and increased by twenty-five dollars ($25.00) the first day of each month thereafter that such employer remains in violation, to a maximum of one hundred dollars ($100.00). Upon written request to the Tax Administrator, a 30-day extension may be granted.
   (d)   1099-Misc. Forms. 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 service performed shall also report such payments to the City, JEDZ or JEDD when the services were performed within the City, JEDZ or JEDD. 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 each calendar year.
   (e)   Every employer or officer of a corporation, in collecting such tax, shall be deemed to hold the same, until payment is made by such employer to the City, JEDZ or JEDD, as a trustee for the benefit of the City, JEDZ or JEDD, and any such tax collected by such employer shall, until the same is paid to the City, JEDZ or JEDD, be deemed a trust fund in the hands of such employer.
   (f)   No person shall be required to withhold the tax on the wages or other compensation paid to domestic servants employed exclusively in or about such person's residence, but such servants shall be subject to the tax imposed by this chapter and to the provisions of Section 890.05.
   (g)   No contract on behalf of the City, JEDZ or JEDD for works or improvements of the City, JEDZ or JEDD shall be binding or valid unless such contract contains the following provisions:
“Said_____________________________ hereby further agrees to withhold all City, JEDZ or JEDD income taxes due or payable under the provisions of the Income Tax Ordinance, for qualifying wages, salaries, and commissions paid to its employees, and further agrees that any of its subcontractors shall be required to agree to withhold any City, JEDZ or JEDD income taxes due under said chapter for services performed under this contract.”
(Ord. 92-59. Passed 11-2-92; Ord. 94-42. Passed 9-6-94; Ord. 01-52. Passed 11-19-01; Ord. 05-48. Passed 9-6-05; Ord. 08-39. Passed 12-1-08; Ord. 09-71.  Passed 12-21-09.)