§ 191.1302. Collection at Source  


Latest version.
  • (a)   In accordance with this chapter, and the Rules and Regulations, each employer, agent of any employer or other payer within or doing business within the City who employs one (1) or more persons shall deduct when any qualifying wages are earned and/or received by the taxpayer, the amount of city income tax imposed by Section 191.0501 on the gross qualifying wages earned and/or received by the taxpayer and except as otherwise provided in divisions (f) and (g) of this section shall, on or before the twentieth day of the month following the close of each calendar quarter make a return and pay to the Tax Administrator the amount of city income taxes so deducted from such qualifying wages, subject to the provisions of divisions (c) to (e) of this section. Returns shall be on a form or forms prescribed by or acceptable to the Tax Administrator, and shall be subject to the Rules and Regulations prescribed therefor by the Tax Administrator. Such employer shall be liable for the payment of the city income tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.

    (b)   Each employer, agent of any employer or other payer in collecting the city income tax shall be deemed to hold the same, until payment is made by such employer, agent of any employer or other payer to the City, as a trustee for the benefit of the City and any such tax collected by such employer, agent of any employer or other payer from his or her employees shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer, agent of any employer or other payer. Each employer, agent of any employer and other payer shall be liable for the payment of city income tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.

    (c)   Each employer, agent of any employer or other payer who deducts and withholds city income tax of one hundred dollars ($100.00) or more per month shall pay to the Tax Administrator before the twentieth of the following month the amount of taxes so deducted on a monthly basis beginning with the first month the employer, agent of any employer or other payer exceeds one hundred dollars ($100.00) in city income taxes withheld.

    (d)   Payments shall be reported on a form or forms prescribed by and obtainable upon request from the Tax Administrator.

    (e)   No employer, agent of an employer or other payer shall be required to withhold the city income tax on qualifying wages or other taxable income paid to domestic servants employed by such employer or other payer exclusively in or about such employer or other payer’s residence, even though such residence is in the City, but such employee shall be subject to all of the requirements of this chapter.

    (f)   (1)   Any person who shall employ or contract for the services of any entertainer, entertainment act, sports event, promotional booth, special event, band, orchestra, rock group, theatrical performance; or

    (2)   Any person who, acting as a promoter, booking agent or employer, engages the services of, or arranges the appearance of any entertainer, entertainment act, sports event, band, orchestra, rock group, theatrical performance in the City, and who makes any payment arising from said appearance in the City shall be deemed to be an employer and shall, for purposes of the collection of the city income tax, be required to withhold, report and remit as required by this section to the Tax Administrator the city income tax at the rate provided in Section 191.0501 hereof, on the gross amount so paid to the entertainer, athlete, etc. on completion of the engagement for the services performed in the City. The reports required by this section shall be made and filed on forms prescribed by and obtainable from the Tax Administrator.

    (g)   Any person, as defined in Section 191.0314, who rents facilities to any entertainer, entertainment act, sport event, promotional booth, special event, band, orchestra, rock group, theatrical performance for use in performing services in the City, and who makes any payment arising from said use of facilities shall be deemed to be an employer and shall, for purposes of the collection of the city income tax, be required to withhold, report and remit as required by this section to the Tax Administrator the city income tax at the rate provided in Section 191.0501 hereof based on the gross amount so paid to the entertainer, athlete, etc. on completion of the engagement for the services performed in the City. The reports required by this section shall be made and filed on forms prescribed by and obtainable from the Tax Administrator.

    (h)   For taxable years beginning after 2003, no employer or agent of an employer or other payer shall be required to withhold tax with respect to any amount other than qualifying wages. Nothing in this section prohibits an employer from withholding tax on a basis greater than qualifying wages.

    (i)   Every employer, agent of an employer or other payer required to withhold and remit the city income tax in accordance with this chapter, shall be directly liable to the City for the payment of such tax, whether or not actually withheld or collected.

    (j)   For taxable years beginning after 2003, no employer is required to make any withholding with respect to an individual’s disqualifying disposition of an incentive stock option if, at the time of the disqualifying disposition, the individual is not an employee of the corporation with respect to whose stock the option has been issued.

    (k)   (1)   An employee is not relieved from liability for paying the city income tax by the failure of the employer to withhold the tax as required by this Section 191.1302 or the employer’s exemption from the requirement to withhold the tax.

    (2)   The failure of an employer to remit to the City the tax withheld relieves the employee from liability for that tax unless the employee colluded with the employer in connection with the failure to remit the tax withheld.

    (l)   In accordance with RC 718.051, the Rules and Regulations of the State Tax Commissioner, this chapter and the Rules and Regulations, any employer subject to this Section 191.1302 may report the amount of city income tax withheld from qualifying wages and remit such amounts by using the Ohio Business Gateway.

(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)