(a) It is required of each employer within the Village of Wellington who employs one or more persons on a salary, wage, commission or other compensation basis, to deduct from compensation paid to such employee subject to this chapter at the time of such payment, the tax imposed in Section 181.02 on such salary, wage, bonus, incentive payment, commission or other compensation due by said employer to said employee.
(b) Notwithstanding the provisions of subsection (a) hereof, when, an employer within the Village of Wellington employs a Village of Wellington resident in another taxing municipality which requires the employer to deduct the tax from such taxing municipality from the Wellington resident employed there, such employer shall withhold and remit to the Village of Wellington the difference, if any, between the tax imposed by such other taxing municipality and the tax imposed by this chapter or shall withhold Wellington tax on one hundred percent (100%) of the income subject to Wellington tax if the Wellington resident/employee is employed in a location which does not impose municipal tax. (Ord. 2004-64. Passed 12-20-04.)
(c) Each employer shall make and file a withholding tax return with the Director of Finance and pay to the Director of Finance the taxes deducted and withheld on the last day of the month following the end of each calendar quarter, i.e., April 30th, July 31st, October 31st and January 31st .
(d) Such return shall be on a form or forms prescribed by and obtainable from the Director of Finance and shall be deemed filed when postmarked by the United States Post Office or delivered to the Tax office during normal business hours. Such employer, in collecting the tax, shall be deemed to hold the same as Trustee for the benefit of the City until payment is made by such employer to the City and any such tax collected by such employer from his employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
(Ord. 2012-13. Passed 5-7-12.)
(e) The officer or employee 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 and making the payment, or pay the taxes, penalty and interest 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 suck business to file a return or pay taxes and penalty and interest due.
(Ord. 2004-64. Passed 12-20-04.)
(f) On or before January 31 following any calendar year such employer shall file with the Director of Finance an information return for each employee along with an annual reconciliation form from whom the 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 the municipal income tax withheld from such employee. The information return shall include all of the information required to be reported to the Internal Revenue Service by the employer on a W-2 Form. At the time of filing this return, the employer shall pay over any amount deducted or which should have been deducted or withheld during the preceding year but which was not remitted.
(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 paid nonemployee compensation, shall furnish copies of the said form 1099s to the Director of Finance or in lieu thereof, a listing containing the same information as required by IRS on the 1099s on or before the due date for such forms 1099 as established by IRS. Failure to provide the foregoing information will result in any deduction for payment by the taxpayer taken on the taxpayer's tax return to be disallowed. (Ord. 2012-13. Passed 5-7-12.)
(1) The deducting and withholding of personal service compensation of all other employees (including officers of corporations) shall attach to the portion of the personal service compensation of such employee which the total number of working days employed within the Village bears to the total number of working days employed within and outside the Village.
(2) If it is impossible to apportion the earnings as provided above, because of the peculiar nature of the service of the employee, or the unusual basis of compensation, apportionment shall be made in accordance with the facts and the tax deducted and withheld accordingly.
(3) The occasional entry into the Village of a nonresident employee who performs the duties for which he is employed entirely outside the Village, but enters the Village for the purpose of reporting, receiving instructions, accounting, etc., incidental to his duties outside the Village, shall not be deemed to take such employee out of the class of those rendering their service entirely outside the Village.
(h) An employer shall withhold the tax on the full amount of any advance made to an employee on account of commissions where such advances are in excess of commissions earned.
(i) An employer, required to withhold the tax on compensation paid to an employee shall, in determining the amount on which the tax is to be withheld, ignore any amount allowed and paid by the employer to the employee for expense necessarily and actually incurred by the employee in the actual performance of his services, provided, that such expense must be of the kind and in the amount recognized and allowed as deductible expense for Federal income tax purposes.
(j) The mere fact that the tax is not withheld will not relieve the employee of the responsibility of filing a return and paying the tax on the compensation received.
(k) Commissions and fees paid to professional men, brokers, and others who are independent contractors and not employees of the payor are not subject to withholding or collection of the tax at the source. Such taxpayers must in all instances file returns and pay the tax pursuant to the provisions of Section 181.02.
(l) The failure of any employer, residing either within or outside the Village, to collect the tax and to make any return prescribed herein, shall not relieve the employee from the payment of such tax in compliance with this chapter respecting the making of returns and the payment of taxes.
(m) The requirements of this section shall apply to any nonresident employer, or to the agent of such a nonresident employer, or to any other nonresident payer, who pays an individual any item included in the taxable income of that individual employee or payee, if the total amount of tax required to be deducted and withheld for the Village on account of all of the employer's employees or payer's payees exceeds one hundred fifty dollars ($150.00) for the calendar year. Once an employer or payee has begun withholding taxes pursuant to this subsection, it shall continue to do so unless, for a period of three consecutive calendar years, the total amount of taxes withheld by the employer or payee for the benefit of the Village has not exceeded one hundred fifty dollars ($150.00) in each of those calendar years; notwithstanding the foregoing, an employer or payee will again be required to comply with this section is, in any subsequent year, the total amount of tax required to be deducted and withheld again exceeds one hundred fifty dollars ($150.00).
(Ord. 2004-64. Passed 12-20-04.)