(a) Withholding by Employer. Each employer within or doing business within the City who employs one or more persons on a salary, qualifying wage, commission or other compensation basis shall deduct, when such salary, qualifying wage, commission or other compensation is paid, allocated or set aside, the tax at the rate provided in Section 181.03 hereof on of the gross salaries, qualifying wages, commissions or other compensation due by such employer to the each employee; and shall, on or before the fifteenth (15th) day of the month following such withholding, make a return and pay to the Tax Administrator the amount of taxes so deducted. Returns shall be on a form or forms prescribed by or acceptable to the Tax Administrator, and shall be subject to the Rules and Regulations prescribed by the Tax Administrator. The employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not the taxes have, in fact, been withheld.
(b) Filings by Employers. So long as the taxes withheld by an employer for the City during the measurement period as less than three hundred dollars ($300.00) per month, payments may be made quarterly on or before the last day of the month following the end of each quarter, subject to the approval of the Tax Administrator. The Tax Administrator may revoke the approval of quarterly filing and payments whenever the Tax Administrator has reason to believe that the conditions for granting such authorization have changed, were judged incorrectly, were not met, or when it is in the best interest of the City to do so. Notice of withdrawal shall be made in writing and, in such case; the employer must begin to file in accordance with this Section.
(c) Employer Considered as Trustee. 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 his employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer. Each employer shall be liable for the payment of the tax to be deducted and withheld whether or not such tax, in fact has been withheld.
(d) Individual Liability. Any person who is required to withhold tax from salaries, qualifying wages, commissions, and other compensation shall pay such tax to the City in accordance with the provisions of this Section. In the event taxes withheld from the salaries, qualifying wages, commissions, and other compensation of employees are not paid to the City in accordance with the provisions of this Section, all officers, members, managers, employees, and trustees having control or supervision of or charged with the responsibility of filing the return and making the payment are jointly and severally personally liable for the tax not returned or paid to the City as well as any related interest and penalties, and are also liable under the provisions of Section 181.12 hereof. The dissolution, termination, or bankruptcy of a corporation, limited liability company, or business trust does not discharge an officer’s, member’s, manager’s, employee’s or trustee’s liability for a failure of the corporation, limited liability company, or business trust to file returns or pay said taxes.
(e) List of Employees. Each employer shall file a withholding tax reconciliation showing the sum total of all compensation paid all employees, the portion of which, (if any) was not subject to withholding along with an explanation for same, and the portion of which was subject to withholding together with the amount of such withholdings remitted. Such return shall include information concerning each employee from whom the City tax was withheld, showing the name, address, and zip code of each such employee, the total amount of compensation paid during the year and the amount of City tax withheld. If the total tax from any employee included tax withheld and remitted to another municipality, the amount of same shall be separately shown on the return of information to the City concerning each employee. The withholding tax reconciliation shall be filed by each employer on or before the February 28th following the end of such calendar year.
(f) Contractors and Subcontractors. In addition to the qualifying 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 services performed shall also report such payments to the City when the services were performed in the City. The information may be submitted on a listing, and shall include the name, address, and zip code (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 28th following the end of such calendar year.
(g) Domestic Servants. No person shall be required to withhold the tax on the qualifying wages or other compensation paid domestic servants employed exclusively in or about such person’s residence. However, such domestic servants shall be responsible for filing and paying their own returns and taxes.
(h) Electronic Funds Transfers.
(1) Except as otherwise provided in this subsection, the payment of taxes by electronic funds transfer does not affect an employer’s obligation to file returns as required under this Section. The Tax Administrator may adopt rules governing the format for filing of returns under this Section by employers who remit undeposited taxes by electronic funds transfer.
(2) The Tax Administrator shall adopt rules governing the remittance of taxes by electronic funds transfer as provided for in this Section. The rules shall govern the modes of electronic funds transfer and under what circumstances each mode is acceptable, the content and format of electronic funds transfers, the coordination of payment of electronic funds transfer. The Tax Administrator may implement means of acknowledging, upon request of an employer, receipt of tax remittances made by electronic funds transfer, and may adopt rules governing acknowledgments. The cost of acknowledging receipt of electronic remittances shall be paid by the person requesting acknowledgement.
(Ord. 2957. Passed 5-1-07.)