(a) In accordance with rules and regulations prescribed by the administrator, each employer within or doing business within the Municipality shall deduct, at the time of the payment of the salary, wages, commission, or other compensation, the tax of two and one-half percent (2½%) per annum of the gross salaries, wages, commissions, or other compensation due by the employer to the employee, and shall, on or before the last day of each month, make a return and pay to the administrator the amount of taxes so deducted during the previous month. However, if the amount of the tax so deducted by any employer in any one month is less than one hundred dollars ($100.00), the employer may defer the filing of a return and payment of the amount deducted until the last day of the month following the end of the calendar quarter in which that month occurred.
(Ord. 1992-18. Passed 3-18-92; Ord. 2009-38. Passed 8-5-09.)
(Ord. 1992-18. Passed 3-18-92; Ord. 2009-38. Passed 8-5-09.)
(b) The returns shall be on a form or forms prescribed by or acceptable to the administrator and shall be subject to the rules and regulations prescribed therefor by the administrator. The employer shall be liable for the payment of the tax required to be deducted and withheld whether or not the taxes have, in fact, been withheld.
(c) The employer, in collecting the tax, shall be deemed to hold the same until payment is made by the employer to the Municipality as a trustee for the benefit of the Municipality, and any such tax collected by the employer from his employees shall, until the same is paid to the Municipality, be deemed a trust fund in the hands of the employer.
(d) No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about the person's residence, even though the residence is in the Municipal limits, but the employees shall be subject to all the requirements of this chapter.
(e) Manager's Obligation.
(1) Every manger is deemed to be a trustee of the Municipality in collecting and holding the tax required under this chapter to be withheld and the funds so collected by such withholding are deemed to be trust funds. Every manager is liable directly to the Municipality for payment of such trust, whether actually collected by such employer or not. Any tax deducted and withheld is to be considered paid to the Municipality whether or not the employer actually remits the tax to the Municipality for purposes of determining employee payments or credits.
(2) All managers shall be personally liable to the extent of the tax, interest and penalty, jointly and severally, for failure to file the employer's return or to pay the employer's tax, interest and penalty as required under this chapter.
(3) No change in structure by an employer, including a fundamental change, discharges its managers from liability for the employee’s or manager's failure to remit funds held in trust, to file a tax return or to pay taxes.
(Ord. 1990-40. Passed 5-16-90.)
(Ord. 1990-40. Passed 5-16-90.)