1. Except as otherwise provided herein, it is the duty of
each Employer within or doing business within this Municipality,
who employs one or more Persons whether as an Employee, officer,
director or otherwise, on a salary, wage or other personal service
compensation basis, to deduct each time any such compensation
is paid to an Employee the tax of one and eight tenths percent
(1.8%) of such salary, wage, bonus, incentive payment, commission
or other compensation due by said Employer to said Employee.
The tax shall be deducted by the Employer from:
a. The gross amount of all salaries, wages, bonuses, incentive
payments, fees, commissions or other forms of compensation listed
in Article III and paid to Residents of this Municipality regardless
of the place where the services are rendered; and
b. All compensation paid Non-Residents for services rendered,
work performed or other activities engaged in within Massillon.
c. An employer is liable for the payment of the tax required
to be deducted and withheld, whether or not such tax in fact
has been withheld.
2. All employers within or doing business within this Municipality
are required to make the collections and deductions specified
in this article, regardless of the fact that the services on
account of which any particular deduction is required as to residents
of this Municipality were performed outside Municipality.
3. Employers who do not maintain a permanent office or Place
of Business in this Municipality but who are subject to tax on
Net Profits attributable to this Municipality under the method
of allocation provided for in the Ordinance are considered to
be Employers within this Municipality and subject to the requirements
of withholding.
4. 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 paid. If the Employer has withheld
the tax and failed to pay the tax withheld to the Administrator,
the Employee is not liable for the tax so withheld.
5. Commissions and fees paid to professional men, brokers
and others who are independent contractors, and not Employees
of the payor, are not subject to withholding or collection of
the tax at the source. Such Taxpayers must in all instances file
a declaration and return and pay the tax pursuant to the provisions
of the Ordinance and Article V and VII of the Regulations.
6. Where a Non-Resident receives compensation for personal
services, rendered or performed partly within and partly without
the Municipality, the withholding Employer shall deduct, withhold
and remit the tax on that portion of the compensation which is
earned within the Municipality in accordance with the following
rules of apportionment:
a. If the Non-Resident is a salesman, agent or other Employee
whose compensation depends directly on the volume of Business
transacted or chiefly effected by him, the deducting and withholding
shall attach to the portion of the entire compensation which
the volume of Business transacted or chiefly effected by the
Employee within the Municipality bears to the total volume of
Business transacted by him within and outside the Municipality.
b. The deducting and withholding of personal service compensation
of other Non-Resident employees, including officers of Corporations,
shall attach to the proportion of the personal service compensation
of such Employee which the total number of his working hours
within the Municipality is of the total number of working hours.
c. The fact that Non-Resident employees are subject to call
at any time does not permit the allocation of pay for time worked
within the Municipality on a seven-day per week basis. The percentage
of time worked in the Municipality will be computed on the basis
of a forty hour week unless the Employer notifies the Administrator
that a greater or less number of hours per week is worked.
1. The determination of tax liability of non-residents working
in and out of the corporate limits is to be computed on the formula
of the total number of days worked in the Municipality divided
by the total number of days worked during the year and the resulting
percentage applied to the total annual income from wages including
sick leave and vacation pay. Where no record can be substantiated
of the number of days worked, the figure 254 is to be used as
the total number of days worked.
7. An Employer shall withhold the tax on the full amount of
any advances made to an Employee on account of commissions.
8. 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, and are not deducted as a Business expenses by the
Employee under Article III of these Regulations.
9. All Employees are required to notify the Employer of any
change of residence and the date thereof.
10. Where an employer employs a Massillon resident in another
taxing Municipality requiring such employer to deduct its tax
from all employees engaged therein, such employer shall withhold
for and remit to this Municipality only the difference, if any,
between the tax imposed by such other taxing municipality and
the tax imposed by this chapter.
11. The Administrator shall have authority to enter into agreement
with other Taxing Municipalities permitting an Employer to withhold
the entire tax on the wages of a Floater either for the Taxing
Municipality in which the Employer has his Principal Place of
Business or the Taxing Municipality in which the Employee resides.
12. Each Employer shall remit to the income tax bureau all
taxes withheld by them from their Employees in the manner prescribed
and outlined in Article VI, C.
