Admin Order 44-21-07-F -- Payroll Tax Rule Amendments

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Administrative Order - Page 5 of 10 outside the City, no tax is owed by the employee for those wages an employee earns at an employer’s business location that is outside the City. (b) The applicable tax rate is based on the annualized income of the employee per pay period using tax rate charts provided by the City and consistent with the per hour rates set forth in EC 3.754(3), (4) or (5). The applicable tax rate is determined without adjustment for overtime wages. 2. Payments and Returns. (a) An employer must withhold, report, and remit the employee tax required by EC 3.754(3) – (5). The employer shall remit the tax withheld from an employee and file tax returns quarterly for the previous calendar quarter on or before the last day of January, April, July, and October. When the tax due date falls on a Saturday, Sunday or legal holiday, the tax and quarterly return or annual return are due on the next business day. (b) A payment made or return filed before the due date as provided in this section shall be considered as made on the due date of the payment or return. (c) Taxes withheld by employers from employees shall be remitted and filed by employers on the forms provided by the City. R-3.762-E AUDITS. 1. As soon as practicable after a return is filed, the City shall examine or audit it if the City deems such examination or audit practicable. If the City discovers from an examination or an audit that a deficiency exists, it shall compute the tax and give notice to the employer filing the return of the deficiency and of the City’s intention to assess the deficiency, plus interest and any appropriate penalty. Except as provided in subsection 2 of this section, the notice shall: (a) State the reason for each adjustment; and, (b) Provide the authority upon which the adjustment is based. 2. When the notice of deficiency described in subsection 1 of this section results from the correction of a mathematical or clerical error and states what would have been the correct tax but for the mathematical or clerical error, such notice need state only the reason for each adjustment to the return. 3. The Tax Administrator, or any person or representative authorized by the City, may examine or cause to be examined during normal business hours, and upon notification to the taxpayer, any books, papers, records, or memorandum bearing upon the matter required to be included in the return, including copies of the taxpayer’s state and federal tax returns, for the purpose of ascertaining the accuracy of any return or for the purpose of making an estimate of tax amount required to be paid to the City.