Payroll Tax

On March 27th, 2000 the City Council of the City of Dry Ridge adopted Ordinance 604-2000. This ordinance established a city occupational license fee (Payroll Tax) on all employees working within the city limits of Dry Ridge. The license fee is effective on all wages paid on or after May 1st, 2000. The ordinance requires that employers withhold the license fee from the employees pay and subsequently remit payment to the City quarterly.

You are hereby notified to begin withholding the City of Dry Ridge Occupational License Fee at the rate of one and one-fourth percent (1.25) on all payments made to employees for work performed within the city limits of Dry Ridge on or after January 1st, 2014.

The ordinance provides for the employer to file a quarterly return wherein the amount of license fee withheld for the quarter will be reported. The employer is required to remit payment of the amount withheld along with the return. THE QUARTERLY RETURNS WILL BE DUE ON THE HOUR OF 4:00 P.M., PREVAILING TIME, ON THE LAST BUSINESS DAY OF THE CALENDAR-MONTH FOLLOWING THE END OF THE REPORTING QUARTER. All employees will receive the appropriate forms from the City at the end of each quarter. ONLY THE FORMS PROVIDED BY THE CITY WILL BE ACCEPTED. You are receiving this notice because you applied for and received an occupational license to operate a business with in the City of Dry Ridge. You may or may not be subject to the occupational license fee, depending on whether you have employees. Employees for the purpose of this license fee are persons who you will give a form W-2 at the end of each year. Employee does not include independent contractors who you may give a form 1099.

To properly administer the occupational license fee, included is a form to complete that declares your status as an employer. The address list on the Declaration of Employee Status is where all occupational license forms will be sent.

The City Clerk will send you the Quarterly Returns form to the address listed on the Declaration of Employee Status before the end of the quarter.

If you have any questions please call 859-824-3335

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