(A) (1) Each employer shall at the time of the payment of any salary, wage, commission, or other compensation, deduct the tax of 1% on and after January 1, 2016, of the gross salaries, wages, commissions, or other compensation due by the employer to his or her employees who are subject to the provisions of this chapter. In making the deductions at the time of payment, the employer shall compute the tax to the nearest full cent so that mills of five or more shall be increased to the next full cent and mills less than five shall be dropped. No person shall be entitled to a refund merely because the rounding off of the tax results in an apparent overpayment based on his or her total earnings. Each employer shall, on or before the last day of each month, make a return and pay to the Director of Finance and Records the tax withheld during the preceding month. However, the Director shall have the authority to approve the filing of returns and payment of the tax withheld on a quarterly basis if the tax due for a single month is less than $200. In such case, the employer shall, on or before the 15th day of each month following the calendar quarters ending March 31, June 30, September 30, and December 31, make a return and pay to the Director the tax withheld during the preceding calendar quarter. The approval for quarterly filings and payments may be withdrawn by the Director when it is to the best interest of the municipality to do so. The Director shall provide, by regulation, the manner in which the approval is to be granted or withdrawn.
(2) The employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not the tax has in fact been withheld.
(B) The employer in collecting the tax shall be deemed to hold it until payment is made by the employer to the municipality, as a Trustee for the benefit of the municipality, and any tax collected by the employer for his or her employees shall, until they are paid to the municipality, be deemed a trust fund in the hands of the employer.
(C) No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed by him or her exclusively in or about the person's residence, even though the residence is in the municipality, but the employee shall be subject to all of the requirements of this chapter.
(D) On or before January 31 of each year, beginning with the year 1974, each employer shall file a withholding return in a form prescribed by and obtainable on request from the Director, setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his or her employees and other information as may be required by the rules and regulations adopted by the Director.
(E) Each employer, contractor, subcontractor, or business entity, either resident or nonresident, shall file a return listing each subcontractor, contractor, and laborer who has performed work within the taxable year and who would not be listed on the return set forth in division (A)(1).
(F) For taxable years beginning after 2003, no municipal corporation shall require any employer or any agent of any employer or any other payer, to withhold tax with respect to any amount other than qualifying wages. Nothing in this section prohibits an employer from withholding tax on a basis greater than qualifying wages.
(G) 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.
(H) (1) An employee is not relieved from liability for a tax by the failure of the employer to withhold the tax as required by a municipal corporation or by the employer's exemption from the requirement to withhold the tax.
(2) The failure of an employer to remit to the municipal corporation 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.
(I) Compensation deferred before the effective date of this section 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.
('80 Code, § 93.06) (Ord. 741, passed 4-3-73; Am. Ord. 869, passed 2-21-78; Am. Ord. 2004-15, passed 10-19-04; Am. Ord. 2015-04, passed 12-1-15) Penalty, see § 36.99