SOCIAL SECURITY CONTRIBUTION AND NATIONAL SECURITY TAX

Bay of Plenty Beacon, Volume 2, Issue 192, 29 July 1940, Page 1

SOCIAL SECURITY CONTRIBUTION AND NATIONAL SECURITY TAX

Charge on Income other than Sal-* ary or Wages: All persons (including tiustees) and companies liable for the Social Security charge on incomc other than salary or wag'es will, in respect of such income derived during the year ended 31st March 19-10, be liable for the quarterly instalments due oil the Ist A'ugust and Ist November, 1940, and; Ist February, 1941, computed on the basis of the combined Social Security and National Security rate of 2s in the £, or in effect double the v*mount of the Social Security charge instalment in each case. This liability applies to all companies and trustees as aforesaid and also to all persons, male and female, ordinarily resident in New Zealand, who have attained the age of sixteen years, except jaersons in receipt of a war pension in respect of total disablement. The combined charge is payable on the same basis and under the same procedure as if the Social Security charge paj 7 able was doubled in respect of each of the three instalments above mentioned. A penalty of 10 per cent wlil be incurred on any amounts not paid within one month after the* due date thereof in each case. As hitherto, payment, either in advance or otherwise, may be made at any money ordpr office or forwarded direct to the Commissioner of Taxes, Wellington. Receipts already issued for payment o r any of the current year's insulin ments of the Social Security charge (e.g. May 1940 instalment) will form the basis of re-calculation, and adjustment to the combined charge, of the instalments affected. Taxpayers are required to present such receipts when tendering payment of the August, 1940, and subsequent instalments. Tf payment is remitted by post the receipts or full partis culars thereof should be forwarded with the remittance. Charge on Salaries and' Wages: All salaries and wages and other income liable to deduction of social security charge at the source are, in respect of amounts earned or derived for any period after the' 21st 'July, 1940, liable to deduction of Social Security charge and National Security tax at the combined rate of Id for every lOd or part thereof. The combined charge is required to be deducted and accounted for on the same basis and under the same procedure as if the Social Security c~4"ge rate had" been increased and all the provisions of the Social Security Act, 1938, and regulations made thereunder apply to the combined charge in the same manner and in all respects as they apply to Social Security charge. Tlie attention of employers and other persons making payments of salaries and wages and other income liable to deduction of the charge at the source is drawn to the above-men-tioned provisions relating to penalties and fines for failure to deduct the charge or failure to account in the proper manner for amounts deducted. Social Security Registration Fee-: On the Ist August an instalment of the Registration Fee (five shillings) will become payable by all Male per sons twenty years of age or ovler who are ordinarily resident in New Zealand, other than those exempt. All such persons, irrespective of occupation, calling or status are required to be registered under the Social Security Act and in posses-! sion of a coupon book, whether or not in receipt of income or entitled to exemption from payment of the fee. Details of the classes of persons entitled to claim exemption may ;be obtained at any Money-Order Office, together with the necessary forms. Every person who is so entitled, including persons in receipt of an Age Benefit under the Social Security Act and not in receipt of any other income, must complete the appropriate form of application for exemption and present it with the coupon book at a Money-order office within seven days after the last day for pay ment of the instalment. Sueli (persons must claim their exemption in the manner indicated above otherWise payment of the instalment may be demanded. It is essential that the full name and postal address of tin (Continued top next column)

holder of a coupon book be entered on the relative coupon before tendering payment of an instalment. Any employer, who employs for more than seven days a person who has failed to register or who is |n arrear with the Registration Fee is liable, on summary conviction, to a fine of £20. New pajM ment oTthe August 1940 Instalment is or exemption from payment thereof is claimed, a new coupon book for male persons twenty years of age or over will be issued covering the November, 1940, and subsequent instalments. Those persons who have already effected payment of the August, 1910, instalment and who have not obtained a new coupon" book should present their current coupon book, together with any loose receipts, at the nearest Money-order office in order that a new coupon book may be issued. IMPORTANT: Further information in connection with th<i Social Security charge, National Security tax or the Registration Fee may be obtained fromi any Money-order office. Taxpayers who are in doubt as to their liabilities should make enquiry as early as possible during month of August, 1940, in order to avoid penalties for late payment of any amounts they may be liable to pay during that > month. J. M. PARK, Commissioner of Taxes.