In December 2007, Grayson enacted a citywide occupational-payroll fee, otherwise known as a
payroll tax, to be imposed upon all persons who derive wages or salaries from work performed within the city. The fee,
in the amount of 1%, is levied upon all adjusted gross wages earned for work within the city. The AGW are calculated
by deducting employer withheld employee contributions to medical, occular or dental insurance and retirement/pension from
the gross wages/salary earned.
Employers are required to make the necessary fee deduction from each employes wages, and
forward those funds to the city on a quarterly basis. Payments are due the city by the 15th of each month following the quarters
end. Deadlines are the 15th of April, July, October and January. If the 15th falls on a day in which city hall is closed,
the payment is due by the latest close of business prior to the 15th.
In order to comply with state statute, city council has revised the occupational-payroll fee
ordinance effective January 1, 2009.
The fee will be
computed on the employees full Gross wages, and no longer based on an Adjusted Gross.
Also, payments from employers will be due on the 30th of the month immediately following
the end of the assessed quarter, i.e. payments will be due on April 30 for the 1st quarter of 2009 instead of April 15th
and so forth.