(a) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within this Municipality shall deduct, at the time of the payment of such salary, wage, commission, other compensation, or other income the tax of one percent (1%) of the gross income, qualifying wages, commissions, other compensation, or other income due by the employer to the employee or the tips or gratuities reported to the employer by each employee for Social Security or Federal Income Tax purposes, and shall, in accordance with the payment schedule prescribed in paragraphs (a)(1) and (2) hereof, make a return showing that all taxes deducted have been paid to the Administrator. The returns shall be on forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. Such employer shall be liable for the payment of the tax required to be deduced and withheld whether or not such taxes have in fact been withheld.
Employers shall pay to the Administrator all income taxes withheld or required to be deducted and withheld on either a monthly or quarterly basis depending on the amount of taxes involved according to the following schedule:
(1) Monthly payments of taxes withheld shall be made by an employer if the taxes withheld during the previous tax year exceeded an average one hundred dollars ($100.00) per month. Such payment shall be made to the Administrator within 15 calendar days after the close of each calendar month.
(2) All employers not required to make monthly payments of taxes withheld under paragraph (a)(1) hereof shall make quarterly payments no later than the last day of the month following such quarter.
(b) The employer of a domestic worker shall be required to withhold income tax on wages, salaries, commissions, other compensation and other income paid by the employer to the domestic worker, and remit such withheld tax to the Municipality in accordance with division (a) of this section.
(c) Such employer, in collecting the tax, shall be deemed to hold the same until payment is made by such employer to this Municipality, as a trustee for the benefit of this Municipality, and any such tax collected by such employer from his or her employees shall, until the same is paid to this Municipality, be deemed a trust fund in the hands of such employer.
(d) On or before February 28 of each year beginning with the year 2001, each employer shall file a withholding return setting forth the names, addresses, and social security numbers of all employees from whose compensation the tax was withheld during the preceding calendar year, the amount of tax withheld from his or her employees and such other information as may be required by the Administrator. The Administrator may grant an extension of not more than 30 days. All payments not subject to withholding shall be reported on a form required by the Administrator. There shall be a penalty of twenty-five dollars ($25.00) per month or part month, up to a maximum of one hundred dollars ($100.00), for noncompliance with this subsection.
(e) The Tax Administrator, for good cause, may require immediate returns and payments to be submitted to his or her office.
(Ord. 2002-141. Passed 1-7-03; Ord. 2004-25. Passed 5-4-04.)