(a) Each employer within or doing business within the City, employing one or more persons on a salary, wage, commission or other compensation basis, shall, at the time of payment thereof, deduct the tax imposed by Section 880.03 from the gross salaries, wages, commissions, including tips or gratuities, or other compensation earned or paid within the City.
(b) Notwithstanding the provisions of subsection (a) hereof, where an employer employs a City resident in another taxing municipality, requiring such employer to deduct its tax from all employees engaged therein, or in a location imposing no municipal tax, such employer shall withhold for and remit to the City the difference, if any, between the tax imposed by such other taxing municipality and the tax imposed by this chapter, or such employer shall withhold the City tax on 100 percent of the income subject to the City tax if the employee works in a location imposing no municipal tax.
(c) Any employer who or which deducts the City tax in the amount of five hundred dollars ($500.00) or more per month during any month of a calendar quarter, shall remit to the Commissioner of Taxation, on or before the fifteenth day of the second and third months of each calendar quarter, the taxes so deducted monthly.
(d) Each employer shall, on or before the last day of the month following each calendar quarter, make a return and remit to the City the tax hereby required to be withheld. Such return shall be on a form prescribed by or acceptable to the Commissioner of Taxation and shall be subject to the rules and regulations prescribed therefor by the Commissioner. Such 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.
(e) On or before January 31, following any calendar year, each employer shall file with the Commissioner an information return for each employee from whom any municipal 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, the amount of any municipal income tax withheld from such employee, the municipality for which it is withheld and the amount withheld therefor. The information return shall include the same information required to be reported to the IRS by the employer.
(f) Each employer, in collecting such tax, shall be deemed to hold the same until payment is made by such employer to the City, as a Trustee for the benefit of the City, and any such tax collected by such employer from employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
(g) The officer or employee having control or supervision of the report, or charged with the responsibility of filing the report and making the payment, is personally liable for failure to file the report or pay the tax, penalties and interest due, as required by this section. The dissolution of a corporation does not discharge an officer's or employee's liability for a prior failure of the corporation to file returns or to pay the tax due.
(h) Every employer shall retain all records necessary to compute withholding taxes due the City for a period of five years from the date of the reconciliation form, W-2 forms and 1099 forms are filed.
(i) The return is considered received when all returns and forms required to be filed by an employer are received on the date postmarked by the United States Postal Services or on the date delivered without mailing by the taxpayer to the City Tax Office.
(j) The failure of any employer to receive or procure a return, or other required form shall not exclude the employer from preparing any information return, withholding tax returns or from filing such forms or from paying the tax due.
(k) Payments received for withholding taxes due shall be applied first to taxes due, then to penalty due, and then to interest due.
(Ord. 94-58. Passed 11-22-94; Ord. 2004-5. Passed 2-12-04.)