CITY OF WINCHESTER, KENTUCKY
                               FINANCE DEPARTMENT
1793                                   P. O. BOX 4135
                               WINCHESTER, KY  40392-4135
                                       (859) 744-1660

                               INSTRUCTIONS - FORM DF
       FILING MONTHLY, QUARTERLY OR ANNUAL PAYROLL TAX
 
Enter Name and Address of Business under BUSINESS NAME AND ADDRESS.
Check whether paying for Quarter, Month or Annual.
Enter the Time Period of the Return i.e. what quarter, month or year paying for.
Enter due date for the time period you are paying for. Due dates can be found on Information Letter in this packet.

Line 1.....Enter total gross amount for all wages received during current month, quarter or for year.  (See definition 
below.)

Line 2.....Enter total gross amount of all wages received which are to be excluded (i.e. work outside City of Winchester 
limits).  Excluded income must be explained in detail on the reverse side of Form DF (annual payers).

Line 3.....Subtract Line 2 from Line 1 and enter total.

Line 4.....Enter the amount of actual tax withheld at the rate of 2.0%.

Line 5.....If payment is not received by the due date, a penalty of 5% per month (up to 25%) of Line 4 is to be added.  
A MINIMUM OF $25.00.
      
Line 6.....If a penalty is required due to late payment, interest accrues at the rate of 1% per month.

Line 7.....Total of Lines 4, 5, and 6.  Amount is to be remitted with the Form DF. Filing of Form DF without proper 
remittance does not exclude penalty and interest from accumulating.

                               CODE OF ORDINANCES
                               CITY OF WINCHESTER, KENTUCKY

       CHAPTER 9. LICENSES AND BUSINESS REGULATIONS
                    ARTICLE V. EMPLOYEES' LICENSE TAX
      
      SECTION 9-68. DEFINITIONS
      
(J)  Salaries, wages, commissions, and other compensation shall mean and 
include the total gross amount of all salaries, wages, commissions, 
bonuses, severance pay and any and all other payments or other 
consideration which a person receives or is entitled to for or as a result 
of any work done or personal services rendered as an employee in any 
trade, occupation or profession, or any other activity, before any payroll 
deductions.  Notwithstanding the foregoing, severance pay to which an 
employee is not legally or contractually entitled but which is paid as an 
employer's settlement or avoidance of a claim for damages by the 
employee, shall not be susceptible to the imposition of the license fee.

(Ord. No. 2-77, Subsection 2, 3-29-77; Ord No. 12-91, Subsection 1, 8-13-91; Ord No. 17-97, Subsection 1, 4-1-97)

   1793                               CITY OF WINCHESTER, KENTUCKY
                                           FINANCE DEPARTMENT
                                                   P. O. BOX 4135
                                          WINCHESTER, KY  40392-4135
                                                    (859) 744-1660

                                                        NOTICE

                           FEDERAL EMPLOYEES SUBJECT TO PAYROLL TAX
                              INDIVIDUAL FILERS SUBJECT TO PAYROLL TAX

Article V of the City of Winchester Code of Ordinances levies and imposes an annual license fee (payroll tax) upon all 
employees working in the City of Winchester for compensation earned within the City.  This license fee (payroll tax) is 
equal to 2.0% of all GROSS SALARIES  (BEFORE ANY DEDUCTIONS ARE MADE, 401K's, etc) earned during 
the calendar year.

All employees of the Federal Government are required to file and pay this payroll tax individually as the Federal 
Government does not withhold this from their wages.  All individual filers are required to do the same if their 
employers do not withhold this tax.

Each person filing and paying this tax individually shall, on or before February 28th of each year, file with the Finance 
Department a return, on a form furnished by or obtainable from the City, setting forth the amount of gross salaries or 
compensation received during the preceding year.  The person filing the tax form shall pay to the City of Winchester 
the amount of tax computed on the tax form.

Please attach a copy of your W-2 to the annual or fourth quarter payment.

Individuals who work  a part of their time within the City and part of their time outside the City may compute the tax 
on only that portion earned while working within the City.

A written explanation is necessary for the services performed outside of Winchester. However, any individual who 
does so must also provide proof that he or she has paid the proper tax due to the County. Failure to do this will result in 
prosecution for failure to pay the entire amount of tax to the City. February 28 this the due date to provide such proof.

Section 9-71 of the Code of Ordinances states that whenever an employee receives compensation for services 
performed both within and outside the City, the tax shall be computed and paid upon the proportion of compensation 
earned within the City. Travel outside the City for attending seminars, training sessions, business meetings, conferences 
and for similar purposes, including vacation and sick time, when done as an incident to full-time employment within 
the City, shall not be subtracted from the gross salary as work outside the City.

Further information on this requirement may be obtained in the Finance Department, City Hall, P. O. Box 4135, 
Winchester, KY  40392-4135, or by calling (859) 744-1660.