A. Bases:

1. RESIDENT EMPLOYEE

a. In the case of Residents, an annual tax of one and eight tenths (1.8%) is imposed on all salaries, wages, commissions, and other compensation. For the purpose of determining the tax on the earnings of Resident Taxpayers taxed under Section 3, paragraph A-1 of the Ordinance, the sources of the earnings and the place or places in or at which the services were rendered, are immaterial. All such earnings wherever earned or paid are taxable.

b. The following are items which are subject to the tax imposed by Section 3, paragraph A-1 of the Ordinance:

1. Salaries, wages, and other compensation, including but not limited to, bonuses, incentive and profit sharing payments, and contributions made by or on behalf of an employee to a tax deferred annuity plan (401K, 403B, IRA'S, KEOGH'S and other similar plans) earned during the effective period of this chapter by an individual whether directly or through an agent and whether in cash or in property for services rendered during the tax period as:

.01 An officer, director or Employee of a Corporation (including charitable and other non-profit organizations), joint stock association, or joint stock company:

.02 An employee (as distinguished from a partner or member) of a partnership, limited partnership, or any form of unincorporated enterprise owned by two or more person;

.03 An employee (as distinguished from a proprietor) of a Business, trade or profession conducted by an individual owner;

.04 An officer or Employee (whether elected, appointed or commissioned) of the United States Government, or any of its agencies; or of the State of Ohio or any of its political subdivisions or agencies thereof; or any foreign country or dependency except as provided in Section 3 of the Ordinance.

.05 An employee of any other entity or Person, whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production or piece work rates; and whether paid by an individual, partnership, Association, Corporation (including charitable and other non-profit Corporations), governmental administration, agency, authority, board, body branch, bureau, department, division, sub-division, section or unit, or any other entity.

2. Commissions earned by an individual directly or through an agent and whether in cash or in property for services rendered during the effective period of the Ordinance, regardless of how computed or by whom or whatsoever paid.

.01 If amounts received as a drawing account exceed the commissions earned and the excess is not subject to the demand of the Employer for repayment, the tax is payable on the amounts received as a drawing account.

.02 Amounts received from an Employer for expenses, and not as compensation, and used as such by the individual receiving them are not deemed to be compensation if the Employer deducts such expenses or advances as such from his gross income for the purpose of determining his Net Profits taxable under Federal law, and the Employee is not required to include such receipts as income on his Federal tax return.

.03 If commissions are included in the net earnings of the trade, Business, profession, enterprise, or activity carried on by an unincorporated entity of which the individual receiving such commission is owner or part owner and therefore subject to the tax under paragraph A-3 or A-4 of Section 3 of the Ordinance, they shall not be taxed under Section 3, paragraph A-1. In such case such net earnings shall be taxed under Section 3, paragraph A-3 of the Ordinance.

.3 Fees, unless such fees are properly includable as part of the Net Profits of a trade, Business, profession, or enterprise regularly carried on by an unincorporated entity owned or partly owned by said individual and such Net Profits are subject to the Tax under Section 3, paragraph A-3 of the Ordinance.

.4 Other compensation, including tips, bonuses or gifts of any type, and including compensation paid to domestic servants, casual employees and other types of employees.

.5 Losses from the operation of a business or profession are not deductible from employee earnings but may be carried forward as provided in Article III C.

.6 Payments made to Employees by an Employer as vacation wages are taxable. Payments made to an Employee by an Employer or a third party under a wage continuation plan during periods of disability or sickness, are taxable.

c. Where compensation is paid or received in property, its fair market value, at the time of receipt, shall be subject to the tax and to withholding, board, lodging and similar items received by an Employee in lieu of additional cash compensation shall be included in earnings at their fair market value.

.1 In the case of domestic and other Employees whose duties require them to live at their place of employment or assignment, board and lodging shall not be considered as wages or compensation earned