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                             INSTRUCTIONS 
 
General Information 
 
Any Employer paying compensation to employees working, or otherwise providing services, in 
the City of Owensboro and/or Daviess County during any calendar year is required, by February 
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28  of the following year, to file the Employers’ Annual Reconciliation of License Fee Withheld, 
(Form REC). 
 
The employer must attach copies of all federal form W-2’s, including federal form W-3, or an 
equivalent listing for all employees that had, or should have had, the license fee withheld from 
their compensation. The W-2’s or equivalent listing must identify, by employee, the tax withheld 
for each jurisdiction. The employer choosing to submit W-2’s must provide a separate employee 
listing identifying employee elections made under a Section 125 “Cafeteria Plan”, plus elections 
made to any other subject welfare, fringe and benefit plan, if such elections are not included in 
Box 1 compensation on the W-2 or otherwise separately identified on the W-2. In addition, the 
W-3 or equivalent listing must include group totals for employee’s wages and withholdings for 
each jurisdiction. 
 
If an employee listing is submitted in lieu of W-2’s, the listing must include the employee’s 
name, address, social security number, total gross wages, social security wages, medicare wages, 
federal taxable wages, local wages for each jurisdiction and the amount of license fee withheld 
for each jurisdiction. The employee listing must also separately identify employee elections made 
under a Section 125 “Cafeteria Plan”, plus elections made to any other subject welfare, fringe and 
benefit plans, including deferred compensation plans.  
 
Form REC, Employers’ Annual Reconciliation of License Fee Withheld, must be signed by the 
person preparing the return. 
 
Please note that the Employers’ Annual Reconciliation of License Fee Withheld titled 
Daviess County Fiscal Court should include only information on employee’s compensation 
earned in Daviess County, occurring outside the corporate city limits of Owensboro. 
Likewise, the Employers’ Annual Reconciliation of License Fee Withheld titled City of 
Owensboro should include only information on employee’s compensation earned inside the 
city limits of Owensboro. 
 
Part I – Withholding Payment Schedule 
 
Indicate the payments made for each month or quarter based on the filing frequency required in 
reporting license fee payments during the calendar year. Next, add together the amounts entered 
for each applicable period and insert sum as Total Payments. Also, include the total number of 
employees having information reported on this reconciliation. 
 
Part II – License Fee Computation 
 
Line 1 Enter Total Wages, Tips and other Compensation from Box 1 of Federal Form  
       W-2 or W-3. 
 
Line 2 Enter any employee compensations contributed to a deferred compensation plan,  
       including any amounts contributed by an employee to any retirement, profit sharing, or 
       deferred compensation plan, which are deferred for federal income tax purposes, 
       including but not limited to salary reduction arrangements under Section 401(a), 
       401(k), 402(e), 403(a), 403(b), 408, 414(h), or 457 of the Internal Revenue Code. 



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Line 3  Enter any employee compensations contributed to any welfare benefit, fringe benefit, 
        or other benefit plan made by salary reduction or other payment method which permits 
        employees to elect to reduce federal taxable compensation under the Internal Revenue 
        Code, including but not limited to Section 125 and 132 of the Internal Revenue Code.   
 
Line 4  Add Lines 1, 2 and 3 to arrive at Total Gross Compensation. 
 
Line 5  Enter the amount included in Line 4 which represents payment for services 
        performed:  
 
        -        Outside the corporate city limits of Owensboro when completing the City of 
                 Owensboro Annual Reconciliation of License Fee Withheld. 
 
        -        Outside Daviess County when completing the Daviess County Annual                          
                 Reconciliation of License Fee Withheld. Include compensation earned in                    
                 the corporate city limits of Owensboro as being earned outside of Daviess                    
                 County. 
 
        -        Also include on Line 5 any other Exempt Compensation. 
 
Line 6  Subtract Line 5 from Line 4 to determine Taxable Compensation. 
 
Line 7  Multiply Line 6 by: 
 
        City of Owensboro  - Please see table 
         
                                 YEAR         RATE 
                            2014              1.33% 
                            2015              1.36% (split rate) 
                            2016              1.39% 
                            2017              1.59% (split rate) 
                            2018              1.78% 
         
        Daviess County - .35%  
 
Line 8  Enter the Total Employee License Fee Remitted during the Year as reported in  Part I 
        of the Annual Reconciliation. 
 
Line 9  If the amount from Line 7 is greater than Line 8; enter the difference as license  fee 
        due. Remittance of the underpayment of license fee due is not required if the amount is 
        $5.00 or less and is the result of fractional and rounding variations. (Attach separate  
                 sheet identifying the applicable period(s) underpayment occurred; 
        otherwise the Occupational Tax Administrator will determine the 
        applicable rate of penalty and interest that applies to the underpayment) 
 
Line 10 Applicable percentage of penalty multiplied by Line 9. Any employer who fails 
        to file and/or pay the license fee by the due date shall pay penalty at the rate of  5% per 
        calendar month, not to exceed 25% of the total license fee due, however the penalty 
        will always be a minimum of $25. The due date for calculation of the penalty is the 
        original due date the license fee should have been remitted. 
 
Line 11 Applicable percentage of interest multiplied by Line 9. Any employer who fails 
        to pay the license fee by the due date shall pay interest at the rate of 1% per 
        calendar month, or fraction thereof, of any license fee due. The due date for 



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         calculation of the interest is the original due date the license fee should have been 
         remitted. 
 
Line 12  Add Lines 9, 10 and 11 to determine the additional license fee, penalty and interest due 
         with the Annual Reconciliation. 
 
Line 13  If the amount from Line 8 is greater than Line 7, enter the difference as 
         Overpayment. Amended Return must be filed for any periods in error to claim a 
         refund of any amount(s) overpaid.  






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