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HomeMy WebLinkAbout2023-04-8770ORDINANCE NO. 2023-04-8770 AN ORDINANCE AMENDING CHAPTER 106, SECTION 106-180 "DEFINITIONS" AND 106-184 "DEDUCTIONS AND WITHHOLDING OF LICENSE FEES BY EMPLOYER; EMPLOYER TO FILE RETURNS AND PAY LICENSE FEES TO CITY; DUE DATE TO FILE RETURNS AND PAY LICENSE FEES" OF THE CODE OF ORDINANCES OF THE CITY OF PADUCAH, KENTUCKY WHEREAS, this Ordinance amends Chapter 106 of the Code of Ordinances of the City of Paducah, regarding electronic filing requirements for payroll processors. NOW, THEREFORE, be it ordained by the City Commission of the City of Paducah as follows: SECTION 1. That the City of Paducah, Kentucky hereby amends Section 106-180 "Definitions" of the Paducah Code of Ordinances as follows: Sec. 106-180. - Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Compensation means and includes the total gross amount of all salaries, wages, commissions, bonuses, gross receipts or other monetary payments of any kind, and any other considerations having monetary value, which an employee receives from or is entitled to receive from or has the right to charge the employee's employer for any services rendered by such employee in the City, including any kind of deductions before take home pay is received. The term "compensation" includes any amounts contributed by an employee to any retirement, profit sharing or deferred compensation plan, and any amounts contributed by an employee to any welfare benefit, fringe benefit, or other benefit plan, which are made by salary reductions or other payment methods, and shall also include all other amounts defined as compensation under KRS 67.750 . The term "compensation" shall not include amounts paid to traveling salesmen or other workers as allowances or reimbursement for traveling or other expenses incurred in the business of the employer, except to the extent of the excess of such amounts over such expenses actually incurred and accounted for by the employee to the employer. Employee means and includes any person who renders services as an employee to an employer or for the benefit of an employer for compensation, including any person who renders such services in an occupation, profession, trade, labor or other type of service. The term "employee" includes any person who renders services for the benefit of any type of legal entity or government as an employee for compensation, including an officer of a legal entity incorporated under law, and any officer, employee, or elected official of the United States, a state, or any political subdivision of a state, or any agency of instrumentality of any one (1) or more of the above. The term "employee" shall not include a person who is an independent contractor or other type of business entity that is subject to business license taxes as defined under article III of this chapter. Employer means and includes any person who employs, contracts or otherwise engages an employee to provide a service for compensation, of any kind and description, as the employee of such person, except that: (1) If the person for whom the individual performs or performed the services does not have control of the payment of the compensation for such services, then in such case, the term "employer" shall then mean the person having control of the payment of such compensation; and (2) In the case of a person paying compensation on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term "employer" means the person who pays such compensation. (KRS 67.750 ; Section 3401(d) of IRC; Model Ordinance) Payroll Processor means and includes a business entity who is engaged by an employer to administer the employer's payroll and em llUee withholding requirements, and to process and file the employer's required returns in behalf of the employer. SECTION 2. That the City of Paducah, Kentucky hereby amends Section 106-184 "Deductions and withholding of license fees by employer; employer to file returns and pay license fees to City; due date to file returns and pay license fees" of the Paducah Code of Ordinances as follows: Sec. 106-184. - Deductions and withholding of license fees by employer; employer to file returns and pay license fees to City; due date to file returns and pay license fees. (a) Each employer shall deduct and withhold from the compensation due any employee the amount of the license fee imposed by this article measured against the compensation due each employee. The payments required to be made on account of such deductions and withholdings by employers shall be paid quarterly to the Finance Director, for the quarterly periods ending September 30, December 31, March 31 and June 30 of each year, on or before the last day of the month next following the end of each such quarterly period. At the time of each payment, the employer shall file a return which shall report the compensation paid to the employee, and the amount which was deducted and withheld from such compensation to pay the license fees imposed under this article. The return shall be made on a form provided by the Finance Director. The failure or omission by an employer to deduct and withhold such license fee shall not relieve an employee from the liability to make the payment of such license fee to the City and from otherwise complying with the requirements for making a return as provided in section 106-188. (b) If during a quarterly period a payroll processor administers and processes the payroll and employeequirements of six (6) or more employers who are subject to this j section, the payroll processor shall file the returns of those employers through electronic means. Each electronic filing shall be made in accordance with the means and format that are provided by the City. All payments due under the returns shall be paid to the City on or before the applicable due dates. The failure or omission of a payroll processor to make the electronic filings required under this subsection shall not relieve an employer from the liability that is imposed upon the employer under subsection (a) above or from compliance with the electronic filing requirement under this subsection (b) [(b)]Lc)If any employer dissolves or withdraws from the City during any taxable year, or if any employer in any manner surrenders or loses its charter during any taxable year, the dissolution, withdrawal, or loss or surrender of charter shall not relieve the employer from the obligation of deducting and withholding the license fees from the compensation paid to its employees and paying the licensee fees as required under this article, nor shall the employer be relieved from the liabilities which arise from the employer's failure to comply with those obligations as prescribed under this article. SECTION 3. SEVERABILITY. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 4. COMPLIANCE WITH OPEN MEETINGS LAWS. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. SECTION 5. CONFLICTS. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. SECTION 6. EFFECTIVE DATE. This Ordinance shall be read on two separate days and will become effective upon summary publication pur ,Wt to KRS Chapter 424. George Bray, Mayor ATTEST: Lindsay Parish, Pity Clerk a� Introduced by the Board of Commissioners, March 28, 2023 Adopted by the Board of Commissioners, April 11, 2023 Recorded by the City Clerk, April 11, 2023 Published by The Paducah Sun, April 13, 2023 Ord\106-180 Electronic Filing Payroll Processors