Payment of Tax

6:01 Payment With Annual Return

A. Amount Due-The payment due at the time of filing the annual return shall be the amount of tax imposed by the Income Tax Ordinance of the Village of Cadiz after deducting:

1. The amount of said tax withheld (deducted at the source) by an employer or employers pursuant to the Section of the Ordinance entitled "Collection at the Source"

 2. Credit for any tax paid or due another taxing municipality in accordance with these Regulations.

3. The amount of said tax paid on a Declaration of Estimated Income Tax by individuals, or in the case of businesses, a Declaration of Estimated Tax on Net Profits in accordance with the section entitled "Returns" of the Ordinance of this municipality, including any overpayments of previous years' tax which have not been otherwise applied.

B. Amounts Less Than One Dollar-Payments less than One and 00/100 Dollar ($1.00) should not be remitted and refunds of less than One and 00/100 Dollar ($1.00)will not be refunded.

C. Overpayment-Except as otherwise provided, should the return indicate an overpayment of tax to which this municipality is entitled under the provisions of the Ordinance entitled "Refunds", such overpayment shall be refunded or applied to the succeeding year's tax liability in accordance with these Regulations.

6:02 Collection at the Source

A. Withholding- It is the duty of each employer within or doing business within the Village of Cadiz who employs one or more persons on a salary, wage, commission or other compensation as defined elsewhere, to deduct each time such compensation is paid to an employee, subject to the Ordinance, the tax from any such compensation due by said employer to said employee. Except as otherwise provided, the tax shall be deducted by the employer from:

1. The gross amount of all salaries, bonuses, incentive payments, wages, commissions or other form of compensation paid to employees who are residents of this municipality, regardless of the place where the services are rendered.

2. All compensation paid to employees who are non-residents of this municipality for services rendered, work performed or other activities engaged in to earn such compensation within the Village of Cadiz.

B. Employer Responsibility-All employers within or doing business within the Village of Cadiz are required to make the collections and deductions in this Section specified, regardless of the fact that the services on account of which any particular deduction is required as to residents of this municipality were performed at a place of business of any such employer situated outside this municipality.

C. Employee Responsibility-The mere fact that the tax is not withheld will not relieve the employee of the responsibility of filing a return and paying the tax on the compensation received.

D. Individuals Not Subject to Withholding-Commissions and fees paid to professionals, brokers and others who are independent contractors and not employees of the payer, are not subject to withholding or collection of the tax at the source. Such taxpayers must, in all instances, file returns and pay the tax pursuant to the Section entitled "Payment of Tax" of the Ordinance.

E. Non-resident Employees- In the case of employees who are non-residents of the Village of Cadiz, the amount to be deducted and withheld is of the compensation paid with respect to personal services rendered in this municipality.

Where a non-resident receives compensation for personal services rendered or performed partly within and partly outside this municipality, the withholding employer shall deduct, withhold and remit the tax on the portion of the compensation which is earned within this municipality in accordance with the following rules of apportionment:

1. If the non-resident is a salesman, agent or other employee whose compensation on the basis of commissions depends directly on the volume of business transacted by him, the deducting and withholding shall attach to the portion of the entire compensation which the volume of business transacted by the employee within this municipality bears to the volume of business transacted by him within and outside this municipality.

2. The deducting and withholding of personal services compensation of all other employees (including officers of corporations) shall attach to the portion of the personal service compensation of such employee which the total number of working days employed within this municipality bears to the total number of working days employed within and outside this municipality.

3. If it is impossible to apportion the earnings as provided above because of (a) the peculiar nature of the service of the employee or (b) the unusual basis of compensation, apportionment shall be made in accordance with the facts and the tax deducted and withheld accordingly. With respect to each such employee (or group of employees similarly or identically circumstanced), the employer shall furnish the Administrator with a detailed statement of facts.

4. The occasional entry into this municipality of a non-resident employee who performs the regular duties for which he is employed almost entirely, or entirely, outside this municipality, but also enters this municipality for the purpose of reporting, receiving instructions, accounting, etc., incidental to his duties, shall not be deemed to take such employee out of the class of those rendering their services entirely outside this municipality.

On or after January 1, 2001, compensation paid to an individual for personal services performed within the municipal corporation, if the individual does not reside in the Village of Cadiz, performs such personal services in this municipality on twelve or fewer days in the calendar year, and, if the individual is an employee, the principal place of business of the individual's employer is located outside this municipality, the individual is excluded from the income tax.

5. In apportioning the earnings of an employee, an employer may accept the written reports of his employee as to any of the items set forth in 1,2,and 3 above. However, the employer shall be responsible for any material error in allocation as to employment within this municipality.

F. Draws and Advances-An employer shall withhold the tax on the full amount of any advances in the same manner as the employer withholds for federal purposes.

G. Expenses-An employer required to withhold the tax on compensation paid to an employee shall, in determining the amount on which the tax is to be withheld, ignore any amount allowed and paid to the employee for expenses necessarily and actually incurred by the employee in the actual performance of his services, provided such expenses are incurred in earning compensation, including commissions, are not deducted as a business expense by the employee (other than as an offset to an advance or reimbursement).

H. Withholding on Residents-Except as herein provided, an employer within or doing business within this municipality is required to withhold the tax from the compensation paid to residents of this municipality regardless of where the services compensated for were performed. Any employer who employs a resident of this municipality in another taxing municipality, which employer is subject to the withholding provisions of both Ordinances, shall withhold and remit tax as follows:

1. Same tax rate-If the rate of tax levied by the other taxing municipality is the same as imposed by the Village of Cadiz Income Tax Ordinance, the employer shall withhold the tax on the entire wage earned by such resident of this municipality and shall remit to such other taxing municipality the appropriate amount of tax due that municipality on the wages earned by such resident of this municipality in such other taxing municipality, remitting to this municipality only the balance, if any, of the tax withheld.

2. Lower Tax Rate-If the rate of tax levied by the other taxing municipality is less than the rate imposed by the Village of Cadiz Ordinance, such employer shall withhold tax on the entire wage earned by such resident of this municipality and shall remit to the other taxing municipality only the tax imposed by the Ordinance of such other taxing municipality on the income earned therein by such resident of this municipality and shall remit to this municipality only the balance of the tax withheld.

3. Higher Tax Rate-If the rate of tax levied by the other taxing municipality is at a higher rate than imposed by the Village of Cadiz, such employer shall withhold and remit to such other taxing municipality its full rate of tax on compensation earned therein by such resident of this municipality, remitting to this municipality only the tax withheld on wages earned other than in such higher-rate taxing municipality.

4. General-The foregoing provisions are conditioned upon the employer's advising the respective cities in which the employer is subject to the withholding provisions of the amount of salaries, wages or compensation earned within such cities, such information to be incorporated in a form approved by the Administrator.

I. Employee Address Records-An employer whose records show that an employee is a non-resident of the Village of Cadiz and who has no knowledge to the contrary, shall be relieved of the responsibility of withholding the tax on personal service compensation paid to such employee for services rendered or work done outside this municipality by such employer provided, however, that such employer otherwise subject to withholding must withhold the tax on compensation paid such employee after the Administrator notifies said employer, in writing, that such employee is a resident of this municipality. All employees are required to notify the employer of any change of residence and the date thereof.

J. Domestic Help-No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed exclusively in or about such person's residence, but such employee shall be subject to all of the requirements of the Ordinance.

6:03 Collection at Source-Return and Payment of Tax Withheld and Status of Employers

A. Dates and Requirements-Any tax deductions from salaries, wages and other compensation required to be made by employers are to begin with compensation earned on and after the effective date of the Income Tax Ordinance of the Village of Cadiz.

1. Such payment shall be made on an Employer's Return of Tax Withheld form (W-1 withholding slip) furnished or obtainable upon request from the Administrator or any acceptable generic form, setting forth the amount of tax deducted for the quarter. A copy of the form shall be retained by the employer for his records. If validation of the taxpayer's copy is deemed necessary by employer, the employer must enclose a stamped, self-addressed envelope with his remittance, and the original and his copy of the W-1 form.

2. The employer (in addition to any return required to be filed with respect to its own earnings or net profits) shall, on or before the last day of each month following the quarter, file a W-1 and pay to the Administrator the amount of taxes so deducted or withheld with respect to compensation paid to all of its employees subject to the tax under the Ordinance of this municipality during the previous quarter.

3. All tax so withheld and so required to be reported must be paid to the Administrator in full at the time of filing of such form.

B. Overwithholding -If more than the amount of tax required to be deducted by the Ordinance is withheld from an employee's pay, such excess may be refunded by the employer or the Administrator, depending upon the circumstances and the time when the overwithholding is determined as follows:

1. Current Employees:

a. If the overwithholding is discovered in the same quarter, the employer shall make the necessary adjustment directly with the employee and the amount to be reported on the W-1 as withheld shall be the corrected amount.

b. If the overwithholding is discovered in a subsequent quarter of the same calendar year, the employer may make proper adjustment with the employee. In such case, the W-1 for the quarter in which the adjustment is made shall reflect the total amount actually withheld for the quarter and the amount of the adjustment deducted there from. Also, an amended W-1 must be filed for the quarter in which the error occurred reflecting the adjustment.

c. If the overwithholding is discovered in a subsequent quarter of the following calendar year, the employee must make and file a request for a refund. This request is to be filed on a form prescribed by and obtainable from the Administrator.

2. Former Employees:

a. In the cases where an amount in excess of the tax has been withheld from an employee who is no longer employed by the employer, the Administrator shall refund the amount of such excess withholding to the employer.

b. If the error is discovered by the employee, such employee shall file a claim with the Administrator and upon verification thereof by the employer, the Administrator shall refund the amount of such excess withholding to the employee.

C. Insufficient Withholding-If less than the amount of tax required to be deducted is withheld from the employee and is discovered in the same year, such deficiency shall be withheld from subsequent wages. If the employee/employer relationship has terminated, or if the underwithholding is discovered in a later year and the employee/employer relationship still exists, the employer shall notify the Administrator of such deficiency and the reason therefore, and payment shall be made by the employer in conformity with these Regulations.

D. Annual Reconciliation-On or before February 28th following any calendar year in which such deductions have been made by any employer, such employer shall file with the Administrator, in the form prescribed by the Administrator or any acceptable generic form, an information return for each employee from whom municipal income tax has been withheld showing the name, address and social security number of the employee, the total amount of taxable compensation paid during the year and the amount of municipal tax withheld for this municipality from each employee.

1. All individuals, businesses, employers, brokers, or others who are required under the Internal Revenue Code to furnish forms 1099 to the IRS for individuals or businesses to whom or which they have paid non-employee compensation, shall furnish copies of the said form 1099's to the Administrator or in lieu thereof, a listing containing the same information as required by the IRS on the 1099's on or before the due date for such forms 1099's as established by the IRS.

E.. Reconciliation Return-In addition to such information returns and at the time the same are filed, such employer shall file with the Administrator, Form W-3 to enable the Administrator reconcile the sum total of taxes withheld as disclosed by the total W-2 Forms of listings of employees. The W-3 shall also reconcile to prior remittances and returns filed by the employer for such tax year with respect to taxes withheld.

F. Types of Reconciliation's-The information return covered under the above shall be made in one of four ways at the election of each employer as follows:

1. Those employers using Form W-2 furnished commercially may submit a copy of such commercial W-2 providing the copy furnished to this municipality shows the information required in the above.

2. Those employers not using Form W-2 furnished commercially may obtain forms upon request from the Administrator.

3. Where the furnishing of this information as above indicated will create a distinct hardship, the employer, upon written request to the Administrator, may be permitted to furnish a list of all employees subject to the tax, which shall show the employee's full name, last known address, social security number, gross amount of taxable compensation paid during the year and the amount of municipal income tax withheld for this municipality.

4. Information may be submitted on computer paper listing.

6:04 Dates of Payments of Estimated Tax

A. The estimated tax may be paid in full with the Declaration of Estimated Tax or in equal installments on or before the 15th  day of the fourth, seventh and tenth months of the taxable year and the 15th  day of the first month of the year following the taxable year.

B.  When filing a Declaration of Estimated Tax or a Declaration of Estimated Net Profits, the return must be accompanied by at least 22 1/2% of the estimated tax due thereon.

C. In the event an Amended Declaration of Estimated Tax has been filed, the unpaid balance shown due thereon shall be paid in equal installments over the remaining payment dates.

D. If the total estimated tax for the current year amounts to not more than $10.00, no payment of estimated tax is required.

6:05 Final Returns Required

A. The filing of a Declaration of Estimated Tax does not relieve the taxpayer of the obligation of filing a final return, even though there is no change in the declared tax liability. A final return must be filed to obtain a refund of any overpayment of over One dollar ($1.00) The taxpayer may elect to file an annual return and pay the tax shown due thereon on or before the last day of the first month of the year following the taxable year for which such Declaration was filed. An annual return so filed and payment so made shall be in lieu of filing the final Declaration of Estimated Tax and payment of the final quarterly installment.

6:06 Liability for Employer's Taxes

A. If any employer which is liable for tax, interest and penalty imposed by the Ordinance undergoes a fundamental change, then the employer shall be liable for taxes, interest and penalty due up to the date of the fundamental change. Taxes and final tax returns shall be due immediately after the fundamental change. Any successor employer shall withhold from any purchase price that the successor owes to the predecessor an amount sufficient to pay all unpaid taxes, interest and penalty which the predecessor employer owed pursuant to this Ordinance. The successor employer shall make such withholding until such time that the predecessor employer has paid such taxes, interest and penalties. If the successor fails to withhold said amount, then the successor shall be liable for the payment of said taxes, interest and penalty.

6:07 Payments Towards Multiple Debts

A. If any taxpayer or other debtor owes multiple debts and makes any single, partial payment to this municipality with respect to such debts, such municipality shall apply such payment in accordance with the debtor's directions.

Otherwise. this municipality shall apply partial payments to the taxpayer's oldest unpaid tax debt, then to his oldest interest debt, and then to his oldest penalty debt.

6:08 Payments in Currency

A. Payments must be in U.S. Currency

B. No more than ten coins of each denomination type and no more than ten bills of each denomination type shall be accepted from taxpayers in payment on municipal income tax debt.

6:09 Payments by Check

A. For the purpose of these Rules and Regulations, the term "checks" shall include personal checks, bank checks, money orders and other such instruments for the payment of money which may be handled as cash items by the Federal Reserve Banks.