(A) (1) Each employer within or doing business within the city who employs one or more persons on a qualifying wage, commission, other compensation or other income basis shall, at the time of payment thereof, deduct the tax of 2% from the qualifying wages, commissions, other compensation or other income earned or received by city residents regardless of where such compensation was earned or received and shall deduct the tax of 2% from the qualifying wages, commissions, other compensation or other income earned or received within the city by non-residents;
(2) Notwithstanding the provisions of division (A)(1) of this section, where such employer employs a city resident in another taxing municipality requiring such employer to deduct its tax from all employees engaged therein, such employer shall withhold for, and remit to, the city only the difference, if any, between the tax imposed by such other taxing municipality and the tax imposed by this chapter;
(3) Each employer shall, on or before the 15th day of the month or quarter following such withholding, make a return and remit to the city the tax hereby required to be withheld. Employers shall deposit withholding to the city on a monthly basis if the tax liability for the previous year equals or exceeds $3,000. Such return shall be on a form or forms prescribed by, or acceptable to, the Administrator and shall be subject to the rules and regulations. 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.
(4) On or before the 28th day of February following any calendar year, such employer shall file with the Administrator an information return for each employee from whom city 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 city income tax withheld from such employee. Employers with more than 100 employees shall provide the information required by this division (A)(4) in the format and on the electronic media specified in the rules and regulations.
(5) 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.
(6) (a) 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 requirements to withhold the tax.
(b) 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.
(B) Such employer, in collecting the 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 or her employees shall, until the same is paid to the city, be deemed a trust fund in the hands of such employer.
(C) All employers that provide any contractual service within the city, and who employ subcontractors in conjunction with that service, shall provide the city the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(D) In addition to the 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 municipality when the services were performed in the municipality. The information may be submitted on a listing, and shall include the name, address and Social Security number (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 28 following the end of such calendar year.
(E) Domestic servants. No person shall be required to withhold the tax on the qualifying wages, commissions, other compensation, and other taxable income 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.
(Ord. 28-02, passed 12-16-02; Am. Ord. 1-11, passed 2-15-11; Am. Ord. 15-15, passed 12-15-15) Penalty, see § 36.99