(a) Each employer within or doing business within the Village of North Kingsville who employs one or more persons on a salary, wage, commission, income, or other compensation basis shall deduct from each periodic compensation paid, and at the time of the payment of such salary, wage, commission, income, or other compensation, the tax at the current rate of Municipal Income Tax from salaries, wages, commissions, income, or other compensation paid by the said employer to the said employee.
(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 remit the tax hereby required to be withheld to the Village of North Kingsville. However, any employer who deducted taxes in the average amount of one hundred dollars ($100.00) or more per month in the previous tax year shall, on or before the last day of the month following the month for which taxes have been withheld, make a return and remit the tax hereby required to be withheld to the Income Tax Clerk. Such return shall be on a form or forms prescribed by or acceptable to the Income Tax Clerk and shall be subject to the rules and regulations prescribed therefor by the Income Tax Clerk. Such employer shall be liable for the payment of taxes hereby required to be deducted and withheld, whether or not such taxes have in fact been so deducted and withheld.
(c) Such employer in collecting such tax shall be deemed to hold the same, until payment is made by such employer to the Village of North Kingsville, as a trustee for the benefit of the Village of North Kingsville, and any such tax collected by such employer from its employees shall, until the same is paid to the Village of North Kingsville, be deemed a trust fund in the hands of such employer.
(d) The officer and/or the employee having control of or charged with the responsibility of filing the return and making payment, shall be personally liable for failure to file the return or pay the tax due as required by this section. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of the corporation to file returns and/or pay taxes, penalties, and/or interest due.
(e) On or before January 31 following any calendar year, such employer shall file with the Income Tax Clerk an annual reconciliation return along with an information return for such employee from whom North Kingsville Income Tax has been or should have been withheld, showing 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 IRS on a W-2 form. At the time of filing the annual reconciliation return the employer shall pay over any amounts deducted or which should have been deducted during the preceding year but which were not remitted. The annual reconciliation form shall be obtained from the Income Tax Clerk.
(f) All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to IRS for individuals or businesses to whom or which they have non-employee compensation shall furnish copies of the said form 1099's to the Income Tax Clerk or in lieu thereof, a list containing the same information as required by IRS on the 1099's on or before the due date for such forms 1099's as established by IRS. Failure to provide the foregoing information may result in any deduction for payment by the taxpayer taken on the taxpayer's return to be disallowed.
(g) Every employer shall retain all records necessary to compute withholding taxes due North Kingsville for a period of six years from the date the Reconciliation form, W-2 Forms, and 1099 forms are filed.
(h) All returns and forms required to be filed by an employer are considered received on the date postmarked by the United States Postal Service or on the date delivered without mailing by the taxpayer to the North Kingsville Tax Office.
(i) 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, withholding tax returns or from filing such forms or from paying the tax due.
(j) Payments received for withholding taxes due shall be applied first to penalties due, then to interest due, and then to taxes due.
(k) All employers that provide any contractual service within the Village of North Kingsville, and who employ subcontractors in conjunction with that service, shall provide the Village of North Kingsville the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(l) No person shall be required to withhold the tax on the wages or other compensation paid domestic employees employed exclusively in or about such person's residence, but such employee shall be subject to all of the requirements of the chapter, including making quarterly estimated payments.
(Ord. O-04-038. Passed 7-6-04.)