SOCIAL SECURITY TAX

Wairarapa Times-Age, 12 August 1938, Page 6

SOCIAL SECURITY TAX

SHII.LiNG IN THE POUND VIRTUALLY UNIVERSAL LEVY ABOLITION OF EMPLOYMENT FUND (By Telegraph—Press Association.) WELLINGTON, This Day. Financial clauses in the Social Security Bill provide for > the establishment and administration of a special fund. The Employment Promotion Fund will be abolished on September 30, 1939, and the moneys remaining in the fund on April 1, 1939, be expended in the meantime for the purposes authorised under the Employment Promotion Act, 1936. The social security contribution will consist of: — (a) Registration fee. (b) A charge on salaries, .wages, and other income.

The collection of the social security contribution will be administered by the Commissioner of Taxes. Every person of the age of 16 years and upwards, who for the time being is ordinarily resident in New Zealand will be required to pay the contribution. The classes of. persons to be exempted from the contribution or any part of it will be declared by Order-in-Council, which rhust.be gazetted. The Commissioner of Taxes is given power to grant special exemption in respect of specified instalments of contribution, or of any penalty where payment would constitute a hardship by reason of the sickness of the person concerned or a member of his family, or by reason of financial circumstances. The registration fee will be 5s a year, payable yearly,' for all women, and for all persons under the age of 20, and shall be 5s a quarter in all other cases. The first instalment of the registration fee will be payable on May 1, 1939. •'

The charge ( on salaries, wages or other income will be at the rate of Is in the pound, and will be charged on all salary and wages, and also on all income now liable for income tax, with the addition of certain classes which have been specifically exempted from the payment of income tax. Penalties are provided in the case of any evasion of payment by employers or contributors.

The charge on income other than salary or wages will be payable quarterly, the first payment being due on May 1, 1939. Provision is made that any taxpayer who has made a business loss in one year, may deduct that loss from his profits in any of the three following years. Provision is made for the creation of special social security stamps, which are to be used for payment of the charge on wages and salary in order to assist employers. Provision is also made for payment in particular cases otherwise than by stamps.,

Every person of the qge of 16 years or upwards ordinarily resident in New Zealand is required to be registered for the purpose of the Social Security Act not later than ! 'one month after the commencement of the Act, thdt is not later than May 1, 1939. In effecting registration he is required to supply such particulars as may be required by regulation, and registration may be effected at any Post Office or other place provided for the purpose. Any person who employs in his service for more than seven days any person who has failed to register or is in arrear with the payment of the registration fee will be liable to a fine. Provision is made that an application for a benefit may be postponed or declined in any case where the full amount of social ' security contribution has not been paid. Authority is given in the Act for the making of any regulations that may be necessary to enable the efficient administration of the benefits provided.