Does an employer have a responsibility to collect the Earned Income Tax of its employees?
Yes. If the employer operates from within the State of Delaware, it has a statutory responsibility to collect and remit the tax to the City. Failure to collect and remit the Earned Income Tax as required subjects the employer to joint liability for the tax, as well as all accrued penalties, interest and other charges. What happens if a Taxpayer doesn’t pay the Earned Income Tax? Failure to pay the tax on a timely basis subjects the taxpayer to statutory penalties and interest. If the taxpayer does not voluntarily pay the tax and all assessments thereon, the account will be referred to either or both a third party collection agency or to an outside law firm with authority to take such action as may be necessary and appropriate to collect the debt, including but not limited to filing suit and executing on any judgment obtained in connection therewith. In addition, the City may elect to report the taxpayer’s Earned Income Tax delinquency to one or more credit reporting agencies. Why does
