SOCIAL SECURITY

Bay of Plenty Beacon, Volume 05, Issue 53, 15 May 1942, Page 5

SOCIAL SECURITY

RISE IN CONTRIBUTION i PAYABLE DURING MAY ; Social Security Contribution and National Security Tax: In this issue appears an intimation from the. Commissioner of Taxes in, connection with the obligations of taxpay-> crs and also employers in regard to the Registration Fee and the charge on income recently increased from 2/- to 2/6 in the £. An instalment of the Registration Fee is payable during the present month, together with the first quarterly instalment of the combined Social Security and National Security charge on income other, than salary or derived during the year ended 31st March, 1942. It is important to note that the recent increase of 6d in the £ in the charge on income first applied to the instalment payable this month (on income other than salary or wages; derived durir«g the year ended 31st March, 1942). This month's quarterly instalment is accordingly payable at the rate of 2/6 d in the £ instead of 2/~ as previously. Subsequent instalments wi'Wl also be payable at the increased rate of 2/6 in the £.

All male and female persons, including Natives, sixteen yearsi of age or over, must pay the Registration Fee or establish a right to exemption in respect of each instalment. Alii persons entitled to< exemption, including persons in receipt of an age benefit from the Social Security Fund, and who are not in receipt of any other income, are reminded that they may be held liable; for payment of the instalment unless a claim for exemption is completed and presented together with the coupon book at a Money Order office vvithin 7 days arter the last day for payment of that instalment. Failure to pay renders defaulters liable, on summary conviction, to a fine of £5. In addition, a penalty of sixpence per month with a maximum penalty' of 2/6 for each instalment automatical'iy accrues if payment is not made within one month of the due date. All persons who are; in receipt of Monetary Benefits under the Social Security Act, 1938, cither than sickness and unemployment benefits, and all persons entitled to payments under the War Pensions Act, must produce their coupon book when claiming the instalment paj'able in the month of June.

All male and female persons (including Natives) 16 years of age or over, Companies not specifically exempted, and: Trustees, are required; during the present month to furnish in respect of the year ended 31st March, 1942, declarations of income other than sallary or wages ("nil" or otherwise) and to pay the Social Security charge and National Security tax at the increased rate of 2/6 in the £ on such income. In the case of Trustees, the liability now extends to all income derived from the estate or trust, whether cr not the beneficiaries are entitled to receive such income during the income year. A special form is provided for the purpose of declarations by trustees. A penalty of 10 per cent is payable on any amount of the. charge not paid within one month of the due date. Income other than salary or wages derived by a person in re* ceipt of total disablement through service in the 1914-19 war is exempt from the Social Security charge. Monetary benefits from the Social Security Fund are a.<so exempt.

Employers also have certain obligations under the Social Security Act, and are responsible for reduction of the wages charge at the time of payment of all salaries or wages paid to employees, including the value of any benefits in kind, such as food, lodging or free house provided. The recent increase of 6d int the £ applies to salaries! and wagesderived in respect of any period, nfter the 10th May, 1942. and deductions at the increased rate of 2/6 in the £ (Id, for every 8d or part thereof) for the combined charge apply accordingly. Employers must nl'so inspect the coupon book of employees to ensure that payment is duly effected of all due instalments iy[ the Registration. Fee.