(a) (1) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within Willard shall deduct at the time of payment of such salary, wage, commission or other compensation the tax at the aggregate of the rate or rates established in Section 197.03 on the gross salaries, wages, commissions or other compensation due by the employer to the employee.
A. Any such employer with a withholding liability of less than one thousand dollars ($1,000) per month shall, on or before the last day of the month following the close of each calendar quarter, make a return and pay to the Administrator the amount of taxes so deducted.
B. Any such employer with a withholding liability of more than one thousand dollars ($1,000) per month shall, on or before the last day of the month following the close of each calendar month, make a return and pay to the administrator the amount of taxes so deducted.
(2) Such returns shall be on a form prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the 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. Any employer subject to this chapter may use the Ohio Business Gateway both to report the amount of the City income tax withheld from compensation and to remit such amounts.
(b) Such employer in collecting such 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 employees shall, until the same is paid to the City, be deemed a trust fund in the name of such employer.
(c) On or before January 31 of each year beginning with the year 1988, such employer shall file an annual reconciliation return along with the names, addresses, social security numbers, total amount of compensation paid during the year and the amount of municipal income tax withheld for the employee, with the municipality for which said tax was withheld identified. 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.
(d) In addition to the wage reporting requirements of this section, any person required by the Internal Revenue Service to furnish Forms 1099 for payment to individuals not treated as employees for services performed shall also report such payments to Willard when the services were performed in Willard. The information may be submitted on a listing, and shall include the name, address and social security number (or Federal tax identification number), and the amount of the payments made. Federal form(s) 1099 may be submitted in lieu of such listing. The information shall be filed annually on or before February 28 following the end of such calendar year. 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.
(e) Any person required to collect, truthfully account for, and pay over, any tax imposed by this section, who willfully fails to collect such tax, truthfully account for, and pay over, such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by ordinance, be liable for a penalty equal to the total amount of the tax evaded, not collected, or not accounted for and paid over.
(f) No penalty shall be imposed under subsection (e) hereof on any unpaid, volunteer member of any board of trustees or any director of any organization exempt from tax if such member:
(1) Is solely serving in an honorary capacity;
(2) Does not participate in the day-to-day or financial operations of the organization; and
(3) Does not have actual knowledge of the failure on which such penalty is imposed.
(g) Payments received for withholding taxes due shall be applied first to penalties due, then to interest due, and then to taxes due.
(Ord. 4774. Passed 11-15-99; Ord. 5271. Passed 5-5-08.)