181.06  COLLECTION AT SOURCE.
   (a)   Each employer within or doing business within the City of Tallmadge who employs one or more persons shall, at the time of the payment thereto, without regard to any alleged credit, deduction, or exemption available under local, state, or federal statute, deduct the amount of tax due based upon the rate in effect at that time from the qualifying wages, commissions, income, or other compensation earned by the City of Tallmadge residents, regardless of where such compensation was earned, and shall deduct the amount of tax due based upon the rate in effect at the time of payment from the qualifying wages, commissions, income, or other compensation earned within the City of Tallmadge by nonresidents.  For purposes of calculating taxes to be withheld from nonresident employees, the employer shall determine the amount of gross wages and other compensation allocable to the City of Tallmadge pursuant to Ohio R.C. 718.02.  The employer shall consistently allocate the employer's gross income in the same manner.  This determination shall be prima facie evidence of where the taxpayer-employee's compensation was earned and may be rebutted only upon submission of tax returns filed in other jurisdictions or such other evidence satisfactory to the Tax Administrator.  The withheld tax shall be remitted as follows:
      (1)   Quarterly payments of tax withheld are required if the total amount of tax withheld by an employer in the prior calendar year averaged less than one hundred dollars ($100.00) per month.
      (2)   Monthly payments of tax withheld are required if the average amount of tax withheld by an employer in the prior calendar year is equal to or greater than one hundred dollars ($100.00) per month, but does not exceed one thousand dollars ($1,000.00) per month.
      (3)   Semimonthly payments of tax withheld are required if the average amount of tax withheld by an employer in the prior calendar year exceeds one thousand dollars ($1000.00) per month.  At the discretion of the taxpayer, payments may be submitted more frequently than semimonthly.
(Ord. 13-2007.  Passed 1-25-07.)
   (b)   Every employer, in collecting said tax, shall be deemed to hold the same, until payment is made by such employer to the City of Tallmadge as a Trustee for the benefit of the City of Tallmadge.  Any such tax collected by such employer from its employees shall, until the same is paid to the City of Tallmadge, be deemed a trust fund in the hands of such employer.
      (1)   Subject to rules of the Tax Administrator, every employer required to deduct and withhold any amount under this chapter shall make payment by electronic funds transfer or by election to pay through the Ohio Business Gateway (OBG), subject to subsection (b)(4) below.
      (2)   The payment of taxes by electronic funds transfer or through the OBG does not affect an employer’s obligation to file the returns as required under this chapter.  The Tax Administrator may adopt rules governing the format for filing the returns under this section by employers who remit undeposited taxes by electronic funds transfer or through the OBG.  The rules may permit the filing of returns at less frequent intervals than required hereunder if the Tax Administrator determines that remittance by electronic funds transfer or through the OBG warrants less frequent filing of returns.
      (3)   The Tax Administrator shall adopt rules governing the remittance of taxes by electronic funds transfer as required under this chapter.  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 by payment of electronic funds transfer, and the filing of associated tax reports and returns, and any other related matter that in the discretion of the Tax Administrator, facilitates payment by electronic funds transfer.
      (4)   The Tax Administrator may grant an exemption to an employer from the duty to make payment by electronic funds transfer based upon a demonstration of substantial hardship to the employer.  Additionally, the Tax Administrator may establish a priority of electronic payors based upon the number of employees or the utilization third party payroll administrators in order to phase in this requirement.
      (5)   The Tax Administrator may implement a means of acknowledging, upon request of a taxpayer, receipt of tax remittances made by electronic funds transfer, and may adapt rules governing acknowledgments.  The cost of acknowledging receipt of electronic remittances shall be paid by the person requesting acknowledgment.
         (Ord. 17-2008.  Passed 2-14-08.)
   (c)   Such 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 therefore by the Tax Administrator.  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.
 
   (d)   The officer or employee having control or supervision, or charged with the responsibility of withholding the tax, filing the return and/or 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.
   (e)   (1)   On or before February 28 of each year, each employer shall file a withholding return setting forth the name, address, and social security number of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the Tax administrator.
      (2)   On or before February 28 of each year all individuals, businesses, employers, brokers or others who engage persons, either on a fee or commission basis or as independent contractors and not employees (i.e., those who are not subject to withholding) must provide the Tax Administrator with copies of all 1099 Miscellaneous Income Forms and/or a list of names, addresses, Social Security numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.
         (Ord. 13-2007.  Passed 1-25-07.)