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A. in the case ofresidents of this municipality, an annual taxis imposed on all salaries, a. If amounts received as a drawing aceomt exceed tle comtnissirnrs
<br />wages, convnissions and other compensaion earned and received, or earned and earned and the excess is not subject to the demand of the
<br />accmed, during the effecfive period of the Ordinance. employer for repayment, the tax is payable on the amounts
<br /> received as a dmwing account (but not then on the comrrriss---
<br />For the purpose of determining the tax on Gross Income of residem taxpayers ~ also).
<br />order the Rate and Income Taxable Section of the Ordinance, the source of
<br />earnings and the place or places in or a[ which the services were rendered aze b. Amounts received firm an employer far expenses and tsec
<br />vnrnaterial. All such earnings, wherever earned, are taxable. The location of the such by the individual receiving them are not deemed to be
<br />place from which payment is made or where payment is received is immaterial. compensation if the employer deducts such expenses or advances
<br /> as such from his gross income for the purposes of detemdrdng his
<br />B. The following are items which are subject ro the tax imposed by the Rate and net profits taxable under federal law and the employee is not
<br />Income Taxable Section of this mrudanahtds Ordinance. required to include such receipts as income (or has directly
<br /> offsetting business expenses) on Ms federal income tax return.
<br />1. Salaries, wages, bonuses and incentive payments (Any Income)eamed by
<br />an individual whether directly or tluough an agent and whether in cash or c. If commissions are included in the net earnings of the trade,
<br />in property for services rendered during the tax period as: business, profession, enterprise or actvity, carried on by an
<br /> unincorported entity of which the individual receiving such
<br />a. An officer or employee of a corpomfion (including charitable and commission is owner or part owner and, therefore, subject to the
<br />other non-profit organizations). tax on the net profits provisions of the Ordinance, they shall not be
<br /> taxed under the provisions relating to salaries, wages or
<br />b. An employee (as distinguished from a paMer or member) of a commissions earned.
<br />partnership, limited partnership, fiduciary or any form of
<br />unincorporated enterprise owned by two or more persons. 3. Fees, including Direcrots fees, unless fees aze properly includable as pan
<br /> of the net profits of a trade, business, profession, or enterprise regularly
<br />c. An employee (as distinguished from a proprietor) of a business, carried by an unincorpomted entity owned or partly owned
<br />Wade or profession conducted by an individual owner, by said individual and such net profits are subject to the tax under the net
<br /> profits provision of the Ordinance.
<br />d. An officer or employee (whether elected, appointed or
<br />commissioned) of the Unitd States Government or of a 4. Other compensation shall include:
<br />corpomfion created and owned or controlled by the
<br />United States Government, or any of its a. Tips received by waiters azrd others.
<br />agencies, or any foreign country or dependency, except military
<br />pay exempted as stated in Secton 4:01 of these Regulations. b. Bonuses.
<br />e. An employee of any other entity or person, whether based on c. Gifts or gratuities in connection with employment
<br />hourly, daily, weekly, semi-monthly, montlily, annual, unit of
<br />production or piece-work rates. d. Compensation paid to domesfic servants, casual employees and
<br /> other types of employees.
<br />2. Cormnissions earned by a taxpayer whether directly or through an agent
<br />and whether in cash or in property for services rendered during the e. Benefits resulting from employers assuming a tax imposed on
<br />effective period of the Ordinance, regardless of how computed or by employees.
<br />wham or wheresoever paid.
<br />
<br />13 f, Fellowships, grants or stipends paid ro a graduate in the full
<br />lq
<br /> amounk except that amount allocated in writing for tuition, books $3,000.00, it shall be prima facie evidence that the income was
<br /> and laboratory fees shall be excluded derived from a business activity of such taxpayer and the net
<br /> inwme from such royalty interest shall be subject to tax.
<br />g Dismissal or severance pay or other form of temilnation pay.
<br /> o. Deferred compensation.
<br />h Incentive payments.
<br /> p. Profit-sharing plans.
<br />i Retirement and Other Plans -Employee, Parnrers contributions
<br /> to retirement plans are neither ezcludable nor deductible by the q. Supplemental unemployment benefit pay.
<br /> employee. Withholding applies to the employee's full
<br /> compensation unreduced by an employee's contribufion to a r. If the income appears on Forrrt W-2 and is not defined in Chapter
<br /> retirement plan. The same rules apply with respect m other 4:00 as non-taxable income, it shall be considered other
<br /> amounts withheld form employees and contributed ro other types compensation and, therefore, taxable to a resident individual.
<br /> of plans.
<br /> s. The employees income derived from finance and catrying charges
<br />j. Contributions made by, or on behalf of employees to "cafeteria" associated with their consumers' accounts receivable.
<br /> plans and other similar employee benefit plans.
<br /> ~t. Lottery/gambling winnings.
<br />k. Stack options given as compensation and when exeroised. The
<br /> tax is due [o the municipality of the workplace and or residence at u. Third-party sick pay.
<br /> the tune of the purchase. The amount of.taxable income is the
<br /> difference between the price paid for the stock and the fa'u v. Fringe Benefits
<br /> market value of the stock at the time ofpurohase.
<br /> 5. Vacations, Holidays, Sickness, etc. - Payments made to employees by an
<br />L Restricted stock given as compensation shall be taxed at the tau employer as vacation otholiday wages are taxable. Payments made ro an
<br /> market value at the time all restrictions lapse. employee by an employer directly under a wage continuation phin during
<br /> periods of disability or sickness are taxable. Such vacation, holiday,
<br />m Income form Pass Tluough Entities. (Irtitially Taxed at Entity Level disability or siclmess payments shall be apportioned in the same ratio as
<br /> See Section 2.05 & 3.0). in addition a distrrbufion from a regulaz wages if the employee works in more than one municipality.
<br /> Subchapter S Corpomfion will be heated as earned income
<br /> (wages) if it was for services performed. If a taxpayer does not 6. Where compensation is paid or received in property, its tau market value,
<br /> claim such compensation as wages, RLT.A. will treat the at the tune of receipt, shall be subject to the tax and to withholding.
<br /> distnbution as earned income to the extent that it is a fair wage for However, with regard to stock options and restricted stocks, such
<br /> the services performed compensation shall be taxed in accordance with 2:01 B4 K and L. Boazd,
<br /> lodging and simlaz items received by an employee in lieu of additional cash
<br />n Royalty Income -Income earned by a taxpayer form a royalty compensation shall be included in earnings at their fair market value;
<br /> interest in the production of an oil or gas well, whether managed, except that in the case of domestics and other employees whose du
<br /> exhacted or operated by the thxpayer individually or through an rern,;m them to live at then place of employment or assignment, board
<br /> agent or other representative, shall be included in the wmputation lodging shall not be considered as wages or compensation earned.
<br /> of net profits from a business activity to the extent that such royalty
<br /> interest constitutes a business activity of the taxpayer. Where the ~ 2:02 Non-resident Individuals
<br /> gross income received by a taxpayer from royalty interest in the
<br /> producfion of an oil or gas well in a taxable year exceeds
<br />15 A. Tn the case of individuals who are not residents ofthis municioality, there is unposed
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