INCOME OR OCCUPATIONS SUBJECT TO LICENSE FEES
§ 110.19  COLLECTION OF LICENSE FEE AT SOURCE.

(A) It is the duty of each employer, as defined in this chapter, who employs one or more persons on a salary, wage, commission or other compensation basis, to deduct monthly or more often, at the time of the payment of compensation, the license fee on the salary, wage, bonus, incentive payment, commission, or other compensation due by the employer to the employee. The license fee shall be deducted by the employer from all compensation paid to employees for activities in the city. However, the mere fact that the license fee is not withheld will not relieve the employee of the responsibility of filing a return and paying the fee on the compensation received. A non-resident employer maintaining in the city an office, business address, or doing business in the city, or otherwise subject to service of legal process, is subject to the withholding provisions of this section.

(B) Where an employee received compensation for personal services rendered or performed partly within and partly outside the city, the withholding agent shall deduct and withhold that portion of the compensation which is earned within the city in accordance with the following rules of apportionment.

(1) If the licensee is a traveling 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 him within the city bears to the volume of business transacted by him both within and outside the city.

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

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

(4) The occasional entry into the city of an employee who performs the duties for which he is employed entirely outside the city, or an employee who performs the duties for which he is employed entirely outside the city, but enters the city for the purpose of reporting, receiving, instructing, accounting, and the like, incidental to his duties outside the city, shall not be deemed to take the employee out of the class of those rendering their service entirely outside the city.

(D) An employer required to withhold the license fee on compensation paid to an employee, may in determining the amount on which the fee is to be withheld:

(1) Ignore any amount allowed and paid by the employer to the employee for expenses necessarily and actually incurred by the employee in the actual performance of his services.

(2) Deduct any amount necessarily incurred and expended by the employee in the actual performance of his services, for which expense he is not to be or has not been reimbursed by the employer; provided, that in either case, the expense must be recognized by the federal and state authorities for payroll tax purposes and the federal authorities for income tax purposes, and the employee shall furnish the employer before the deduction is made an itemized statement of the expenses claimed.

(1) Name.

(2) Address.

(3) Gross wages paid.

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