(a) Each employer within or doing business within the City shall deduct at the time of payment of such salaries, qualifying wages, commissions or other compensation as defined in Section 1701.18 of this Taxation Code, the tax of two and one-half percent (2.50%) of the gross salaries, qualifying wages, commissions or other compensation due by the said employer to the said employee and shall, on or before February 28th, make a return showing the amount of taxes so deducted and a record of payments showing that all taxes deducted during the year have been paid to the City in accordance with the payment schedule prescribed by subsection (c) hereof. 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. Every employer or officer of a corporation is deemed to be a trustee for this Municipality in collecting and holding the tax required under the ordinance to be withheld and the funds so collected by such withholding are deemed to be trust funds.
(b) In the case of employees who are non-resident professional athletes, the deduction and withholding of personal service compensation shall attach to the entire amount of qualifying wages, salaries, and other compensation received for games that occur in the taxing community. In the case of a non-resident athlete not paid specifically for the game played in a taxing community, the following apportionment formula must be used: The wages, salaries and other compensation earned and subject to tax is the total income earned during the taxable year, including incentive payments, signing bonuses, reporting bonuses, incentive bonuses, roster bonuses and other extras, multiplied by a fraction, the numerator of which is the number of exhibition, regular season and post-season games the athlete played (or was available to play for his team, as an example, with substitutes), or was excused from playing because of injury or illness, in the taxing community during the taxable year, and the denominator of which is the total number of exhibition, regular season, and post-season games which the athlete was obligated to play under contract or otherwise during the taxable year, including games in which the athlete was excused from playing because of injury or illness. Exhibition games are only those games played before a paying audience, and played against another professional team from the same professional league. In the case of non-resident salaried athletic team employees who are not professional athletes, deduction and withholding shall attach to qualifying wages, salaries and other compensation earned for personal services performed in the City.
(c) Employers shall pay to the City all income taxes withheld or required to be deducted and withheld on either a semimonthly, monthly or quarterly basis depending on the amount of taxes involved according to the following payment schedule:
(1) Semimonthly payments of the taxes deducted are to be made by an employer if:
A. The total taxes deducted in the prior calendar year were twelve thousand dollars ($12,000) or more; or
B. The amount of taxes deducted for any month in the preceding quarter exceeded one thousand dollars ($1,000). Such payment shall be paid to the City within five banking days after the fifteenth and the last day of each month.
(2) Monthly payments of taxes withheld shall be made by an employer if the taxes withheld in the prior calendar year were less than twelve thousand dollars ($12,000.00) but more than one thousand one hundred ninety-nine dollars ($1,199.00) or if the taxes withheld during any month of the preceding quarter exceeded one hundred dollars ($100.00). Commencing with taxable years subsequent to December 31, 1998 monthly payments of taxes withheld shall be made by an employer if the taxes withheld in the prior calendar year were less than twelve thousand dollars ($12,000.00) but more than three thousand five hundred ninety nine dollars ($3,599.00), or if taxes withheld during any month for the preceding quarter exceeded three hundred dollars ($300.00). Such payments hall be paid to the City within fifteen days after the close of each calendar month. However, those taxes accumulated for the third month of a calendar quarter by employers making monthly payments pursuant to this paragraph need not be paid until the last day of the month following such quarter.
(3) All employers not required to make semimonthly or monthly payments of taxes withheld under (1) and (2) of this subsection shall make quarterly payments no later than the last day of the month following the end of each quarter.
(d) Each employer who maintains a place of business in the City and another branch within the metropolitan area of the City shall also withhold the tax from the employees residing in the City but working at the employer's metropolitan area branch, even though the payroll records and place of payment are outside the City.
(e) The employer shall make and file Form 17 furnished by the Department of Taxation, showing the amount of tax deducted by said employer from the salaries, wages, commissions or other compensation of any employee and paid by the employer to the City. The Form 17 shall also reconcile to prior remittances and returns filed by the employer for such tax year with respect to taxes withheld. Such employer's return shall be accepted as the return required of an employee whose sole income subject to the tax under this Taxation Code is the salaries, wages, commissions and other compensation returned by the employer.
(f) Each employer on or before February 28, unless written request for thirty days extension is made to and granted by the Administrator following any calendar year in which such deductions have been made or should have been made by such employer shall file with the Administrator an information return (Worthington Withholding Statement of Wages Paid, and Worthington Income Tax Withheld), for each employee from whom income tax has been or should have been withheld, showing the name and address of the employee, the total amount of salaries, wages, commissions and other compensation paid said employee during the year, and the amount of City income tax withheld from each employee.
(g) Where a resident of the City performs service for his employer in another municipality, which services are subject to withholding in the other municipality, the employer shall have the authority to reduce the withholding to the City to the extent of the tax liability in the other municipality.
(h) The officer or the employee having control or supervision of or charged with the responsibility of filing the report and making payment is personally liable for failure to file the report or pay the tax due as required by this section. The dissolution of a corporation does not discharge an officer's or employee's liability for a prior failure of the corporation to file returns or pay tax due.
(Ord. 03-2010. Passed 6-7-10.)