AMENDED Agenda Packet 6-10-19 Work Session

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Ordinance - Page 4 of 7 Employer. Any of the following: (a) A person who is in such relation to another person that the person may control the work of that other person and direct the manner in which it is to be done; (b) An officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee or member is under a duty to perform the acts required of employers by ORS 316.167, 316.182, 316.197, 316.202 and 316.207; (c) The State of Oregon or any political subdivision of the state; or (d) An independent contractor. Employee. An individual who renders personal services at a fixed rate to an employer if the employer either pays or agrees to pay for personal services or permits the individual to perform personal services. Fixed Rate. Compensation based on the time spent in the performance of the services, on the number of operations accomplished or on the quantity produced or handled. Independent Contractor. As defined in ORS 670.600. Minimum Wage Employee. An employee working for the minimum wage rate established by ORS 653.025. Tax Administrator. The city manager, the manager’s designee, or any person or entity with whom the city manager contracts to perform those duties. More than one person or entity can concurrently serve as the tax administrator. Wages. As defined in ORS 267.380(1)(c), (2)(a)(b) – (c), and (2)(e) – (j). 3.724 Payroll Tax – Tax Imposed. (1) A tax is hereby imposed on every employer, except the federal government, State of Oregon or any political subdivision of the state, with a physical address in the city at a rate of 0.0020 of wages paid by the employer. (2) A tax is hereby imposed on every employee working at an employer located in the city at a rate of 0.0040 of employee’s wages. (3) Notwithstanding subsection (2) of this section, the tax rate imposed on every minimum wage employee working at an employer located in the city is 0.0020 of the employee’s wages. (4) If an employer located in the city also has one or more business locations outside the city, no tax is owed by the employer or the employee for those hours an employee works at an employer's business location that is outside the city. (5) Every employer at the time of the payment of wages shall deduct and withhold from the total amount of the wages paid to employees an amount equal to the total amount of wages, without exemption or deduction, multiplied by the rate of tax imposed under subsection (2) or (3) of this section. 3.726 Payroll Tax – Payment and Remittance. The employer shall pay the tax imposed by 3.724(1), and remit the tax imposed by 3.724(2) and (3), to the tax administrator quarterly, or less frequently than quarterly if directed by the rules adopted under section 3.732 of this code. The tax administrator is authorized to exercise all June 10, 2019, Work Session – Item 2