(a) Each employer within or doing business within the city shall deduct, at the time of payment of an employee’s income, salary, wage, commission or other compensation, the tax of 2% per annum on and after July 1, 1995, of the gross income, salaries, wages, commissions or other compensation due by said employer to said employee and shall make a return and pay to the Administrator the amount of taxes so deducted. Said returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefore by the Administrator.
(1) If the taxes withheld by an employer for the city during the previous tax year averaged $250 per month or more, the employer shall remit payment of the withheld taxes to the city on or before the twentieth day of the month following the month for which the taxes were withheld.
(2) If the taxes withheld by an employer for the city during the previous tax year averaged less than $250 per month, payments may be remitted quarterly on or before the last day of the month following the end of the quarter for which the taxes were withheld, subject to the approval of the Administrator, and in accordance with the rules and regulations prescribed by the Administrator.
(3) 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.
(b) Such employer in collecting said 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) Said payments shall be on a form or forms furnished by or obtainable upon request from the Administrator, setting forth the amount of tax deducted for the month. A receipted copy of such form shall be returned to the employer to be attached to and filed with the employer’s quarterly return of income tax withheld
(d) No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him or her exclusively in or about such person’s residence, even though such residence is in the city, but such employee shall be subject to all of the requirements of this chapter.
(e) The officer or employee having control or supervision, or charged with the responsibility of withholding the tax, filing the return and making the payment, shall be personally liable for the failure to file the return or pay the tax due as required herein. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer’s or employee’s liability for a prior failure of such business to file a return or pay taxes due.
(f) On or before February 28 following any calendar year, such employer shall file with the Administrator an annual reconciliation return along with an information return (W-2 Form) for each employee from whom Solon 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 Administrator.
(g) On or before February 28 of each year all individuals, businesses, employers, brokers or other who engage persons, either on a fee or commission basis or as independent contractors and not employees (those who are not subject to withholding) must provide the city with copies of all 1099 Miscellaneous Income Forms and/or a list of names, addresses, Social Security numbers or federal identification numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.
(h) 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 employer requirements under this chapter.
(Ord. 2007-217, passed 10-15-2007)