(a) Each employer within or doing business within Waterville who employs one or more persons on a salary, wage, commission, or other compensation basis shall, at the time of payment thereof, deduct the tax of two percent (2%) from the gross salaries, wages, commissions, or other compensation earned or received by Waterville residents regardless of where such compensation was earned or received, and shall deduct the tax of two percent (2%) from the salaries, wages, commissions, or other compensation earned or received within Waterville by nonresidents.
(b) Notwithstanding the provisions of subsection (a) hereof, where an employer within or doing business within the municipality who employs a Waterville 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 Waterville only the difference, if any, between every such tax imposed by such other taxing municipalities and the tax imposed by this chapter; however, employers shall withhold for and remit to Waterville no less than one-half percent (.5%) of each employee's wages, commissions, and other compensation; or shall withhold Waterville tax on 100% of the income subject to Waterville tax if the Waterville resident/employee is employed at a location where a municipal tax is not imposed.
(c) Each employer shall, on or before the last day of the month following each calendar quarter, make a return and remit to Waterville the tax hereby required to be withheld. Such return shall be on a form or forms prescribed by or acceptable to the Commissioner, and shall be subject to the rules and regulations prescribed therefore by the Commissioner. 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) Such employer in collecting such tax shall be deemed to hold the same until payment is made by such employer to Waterville as a trustee for the benefit of Waterville, and any such tax collected by such employer from his employees shall, until the same is paid to Waterville, be deemed a trust fund in the hands of such employer.
(e) The officer or employee of such employer having control or supervision or charged with the responsibility of filing the return and making the payment, shall be personally liable for 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 prior failure of such business to file a return or pay taxes due.
(f) On or before the last day of February following any calendar year, such employer shall file with the Commissioner an annual reconciliation return along with an information return for such employee from whom Waterville 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 such 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 Commissioner.
(g) All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to IRS for individuals or businesses to whom or which they have non-employee compensation shall furnish copies of the said form 1099's to the Commissioner or in lieu thereof, a list containing the same information as required by IRS on the 1099's on or before the due date for such form 1099 as established by IRS. Failure to provide the foregoing information may result in any deduction for payment by the taxpayer taken on the taxpayer's return to be disallowed.
(h) Every employer shall retain all records necessary to compute withholding taxes due Waterville for a period of five years from the date the Reconciliation Form, W-2 Forms, and 1099 Forms are filed.
(i) The Return is Considered Filed When. All returns and forms required to be filed by an employer are considered filed on the date postmarked by the United States Postal Service or on the date delivered without mailing by the taxpayer to the Waterville Tax Office.
(j) The failure of any employer to receive or procure a return, or other required form
shall not excuse the employer from preparing any information return, withholding tax returns or from filing such forms or from paying the tax due.
(k) Payments received for withholding taxes due shall be applied first to penalties and interest due, and then to taxes due.
(Ord. 11-04. Passed 10-11-04.)