2004 023 Ordinance - Laserfiche WebLink

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where Ote services are rendered. portion of the personal service compensation of such employee which the total number ofworking days employed within this municimaliri bears to 2. All compensation paid to employees who aze non-residents of Ovs the total number of working days employed within and outside this municipality for services rendered, work performed or other activities municimality. engaged in to cam such compensation within this municioaliN. 3. If i[ is impossible [o apporfion the earnings as provided above berausi B. Employer Rsponsbility -All employers within or doing business within O=s (a) the peculiar nature of the service of the employee or (b) the unu; munici are requhd to make the collections and deductions in this Section basis of compensation, apportionment shall be made in accordance vnm specified, regazdlss of the fact that the services on account of which any particular the facts and the tax deducted and withheld accordingly. With respect to deduction is required as to residents of this municinalirywere performed at a place each such employee (or group of employees similazly or idenfically of business of any such employer situated outside this municipality. cinaanstarrczd), the employer sha0 fiunish the Adrrilrilshator with a detailed statement of facts. C. Employee Responsbility -The mere fact that the tax is not wit}ilreld will not relieve the employee of the responsibility of filing a return and paying the tax on the 4. 12-Day occasional entry Wile: On and after January 1, 2001, a municipal compensation received (see Section 6:03.A of these Regulations). corporation sha0 not tax the compensation paid to a nonresident individual for personal services or work perfomred by the individual in the municipal D. Individuals Not Subject to Withholding -Commissions and fees paid to corporation on twelve (12) or fewer days m a Calendar year unless one professionals, brokers and others who aze independent contactors and not of the following applies: employees of the payor, are not subject to withholding or collection of the tax at the source. Such taxpayers must, in a0 instances, file returns and pay the tax A. The individual is an employee of another person: the principal place pursuant to the Section endOed "Payment of Tax" of the Ordinance of this of business of the individuals employer is located in another ~c"0~ri' ~ municipal cogromtion in this state that imposes a tax applying~to E Non-resident Employees - In the case of employees who are non-msidents of this compensation paid fO [he individual for services performed on those days; and the individual is not liable to that other municipal municipality, the corporation for tax on the compensation paid for such services. amount m be deducted and withheld is (at tlvs municipaliMs tax rate) of the B. The individual is a profssional entertainer or professional atlilete, compensation paid with respect to personal services rendered in this municioality. the promoter of a professional entertainment or sports event, or an employee of such a promoter, a0 as may be reasonably defined by Where anon-resident receives compensafion for personal services rendered or the municipal corporation. performed paNy within and partly outside this mvnicipaliN, the wiOilrolding o Beginning wiOr the Orirteanh day, the employer of said individual employer sha0 deduct, withhold and remit the tax on the portion of the shall begin withholding that municipality's income tax from compensafion which is earned within this rrnarieioality in accordance with the remuneration paid by the employer to the individual, subject to following nrls of apportionment the $150.00 deminirnus, and shall remit the withheld income tax to RITA inaccordance with section 6:03 of the RTTA Rules and 1. If the non-resident is a salesman, agent or other employee whose Regulatons. (Collecfion at Souree). compensation on the basis of commissions depends direcOy on the volume Since the individual can no longer be considered to have been an of business transacted by him, the deducting and withholding shall attach occasional entrant, the employer is funher required to remit taxes to the portion of the entire compepsaton which the volume of business on income earned in that mtvilcipality by the individual for the fast truuacted by the employee within this municinalitvbears to the volume of twelve days. business nansacted by him within and outside this municipality. • if the individual is self-employed, i[ sha0 be the nsportsrbility of the individual to remit the appropriate income tax [o that city. 2. The deducting and withholding of personal services compensation of all For purposes of the 12-day calculation, any portion of a day oOrer employees (including officers of corporations) shall attach m the worked in a RITA municipality shall be counted as one day worked in a RITA municipality. tax rote) from the compensation paid to residents of this municipalitvregardless of • Income tax withheld by anon-resident employer and paid to a where Ore services compensated for wen: performed Arry employer who employs RiTA municipality as a result of the emplpyerbeing subject to the a resident of this municipaliri in another tarring municipality, which employer is $150 deminimus provision is not subject to being refunded to subject to the withholding provisions of both Orlvrarss, shall wiOiltold and remit an individual under the 12-day occasional entry provision. tax as follows: 5. $150 Deminimus Requirement 1. Same Tax Rate - If the rate of tax levied by the other Wring municipality If not cmrenOy required to withhold RITA income tax, tban a non-rsident is the same as imposed by this municipaliNs Ordinance, the employer shall employer, agent of such employer, or other payer not situated in a RITA withhold the tax on [he entbe wage earned by such resident of this municipality shall not fiuther be requhed to withhold RITA income tax rormici and shall remit to such other taxing municipality the from remuneration paid to anployes of the employer until the collectve appropriate amount of tax due that municipality on the wages earned by tax liability of the employees working in a RTfA municipality initially such resident of this mumicinaliry in such other taxing municipality, renitting exceeds $150.00. When the collective liability exceeds $150.00 the to this municinalirionly the balance, if arty, of the tax withheld employer is required to begin withholding the appropriate income tax for R1TA on behalf of all employes performing work in a RTTA municipality. 2. Lower Tax Rate - If Ore rote of tax levied by the other taxing municipality Once the collecdve liability has exceeded $150, the employer must is less than the rote imposed by the Ordinance of this municipality, such wiOilrold income tax for RTTA for the remainder of the calendar yeaz and employer shall withhold tax on the entire wage earned by such resident of for subsequent years, even if the liability in subsequent years, does no[ this municimlilvand shall remit to the other taxing municipality only the tax exceed $150. However, if the tax liability for each of the three imposed by the Ordinance of such other taxing municipality on the income consecutive years (subsequent to that year in which the employer ~ earned therein by such resident of this municipality and shall remit to dus became liable for withholding the income tax) does not exceed $150, the mrmicipalitvonly the balance of the tax withheld employer will be considered as not having perfomaed work in RITA jurisdiction in regard to further tax liability, and again will be subject to the 3. Higher Tax Rate - If the rate of tax levied by the other taxing municipality $150 deminnnus role. is at a higherrate than imposed by the Onlinance of this municipality, such employer sha0 withhold and remit m such other taxing municipality its fill 6. Tn apportioning the earnings of an employee, an employer may accept the rate of tax on compensation earned therein by such resident of Otis written reports of his employee as to any of the ilerrrs set foOh in 1, 2 and rmrmc' , remitting to Otis municipality only the fax withheld on wages 3 above. However, the employer shall be responsible for any material earned other than in such higher-rate faxing municipality. error in an allocation as m employment with this municipaliri. 4. General -The foregoing provisions are conditioned upon the employees F. Draws and Advances - An employer shall withhold the tax on the frill amount of advising the respective ciOs in which the employer is subject to the any advances in the same manner as the employer withhoIds for federal purposes. withholding provisions of the amount of salaries, wags or compensation earned within such cities, such information to be incorporated in a fomr G. BxPenss - An employer regnired to withhold the tax on compensation paid to an approved by the Administrator. employee shall, in dPr~,,,;nipg the amount on which the tax is to be withheld, ignore any amount a0owed and paid to the employee for expenses necessarily and I. Em 1 eeAddress Records-An p oy employerwhose records show that an employee actually inciured by the employee in the actual performance of his services, is anon-resident of this mmricipaliriand who has no knowledge to the contn provided such expenses are inenrred m earning compensation, including shall be relieved of the responsibility of withholding the tax on personal set _ commissions, and are not deducted as a business expense by the employee (other compensafion paid to such employee for services rendered or work done out than as an offset to an advance or reimbursement). this mumicinaliri by such employer provided, however, that such emplc,,,. othe[wise suhject ta withholding must withhold the tax on compensation paid such H Wi0ilwldmg on Residents-Except as herein provided,anemployerwithin or doing employee after the Admvdstator notifis said employer, in writing, that such business within Otis mtudcioalitvis regnired to withhold the tax (at tlris muniaoalipls employee is a resident of this rmmicipalite All employes are requited to notify the