(a) Each employer within or doing business within the Village who employs one or more persons on a salary, wage, commission or other compensation basis as defined at Section 185.02(q) shall at the time of payment thereof, deduct the tax of one and one half percent (1-1/2%) from the gross salaries, wages, commissions or other compensation earned by Village residents regardless of where such compensation was earned and shall deduct the tax of one and one-half per cent (1-1/2%) from the salaries, wages, commissions or other compensation earned within the Village by nonresidents.
(b) Notwithstanding the provisions of subsection (a) hereof, where an employer within or doing business within the Village who employs a Village 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 Village of Whitehouse only the difference, if any, between the tax imposed by such other taxing municipality and the tax imposed by this chapter; or shall withhold Whitehouse tax on one hundred percent (100%) of the income subject to Whitehouse tax if the Whitehouse resident/employee is employed at a location where a municipal tax is not imposed.
(c) Each such employer shall, on or before the last day of the month following each calendar quarter, make a return and remit to the Village 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 therefor 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) On or before March 1, following any calendar year, such employer shall file with the Commissioner an annual reconciliation return (Form W-3) along with an information return (Form W-2) for such employee from whom Whitehouse income tax has been or should have been withheld, showing the name, address, 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 was not remitted. The annual reconciliation form shall be obtained from the Commissioner.
(e) Such employer in collecting such tax shall be deemed to hold the same, until payment is made by such employer to the Village, as a trustee for the benefit of the Village and any such tax collected by such employer from its employees shall, until the same is paid to the Village, be deemed a trust fund in the hands of such employer.
(f) The offficer or the employee having control of or charged with the responsibility of filing the return and making payment, shall be personally liable for the failure to file the return or pay the tax due as required by this section. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of the corporation to file returns or pay taxes, penalties or interest due.
(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 nonemployee 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 forms 1099's 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 Whitehouse for a period of five years from the date of the Reconciliation Form, W-2 Forms and 1099 Forms are filed.
(i) The return is considered received when all returns and forms required to be filed by an employer are received on the date postmarked by the United States Postal Service or on the date delivered without mailing by the taxpayer to the Whitehouse 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 taxes due, then to penalty due, and then to interest due.
(Ord. 23-2003. Passed 11-18-03.)