THE WAGES TAX

Evening Post, Volume CXII, Issue 122, 19 November 1931, Page 5

THE WAGES TAX

METHOD OF DEDUCTION

• Employers who pay in one sum the emergency unemployment chaige due in respect of the wages of their employees are, reminded that it is most important that they should make the deductions from the wages in accordance with the regulations, states, a circular from the Unemployment Board. The tax payable must not be calculated on the total of the wages paid, but ..is the aggregate of the deductions from each ■individual ■whose name appears on the wages sheet. " -If an employer with a weekly or jnonthly pay-roll of, say, £1000, simply computed the-tax-on that amount (£l2 10s) this, would considerably understate the aggregate of the' separate deductions made from each individual, since these. would bo. computed iv all cases at one penny on each 6s 8d ot part of 6s Bd, and no doubt there would be many cases where one penny was deducted for.a portion of 6s Bd. For instance, 24 employees may each be in receipt of £4 lOsweekly, arid the legitimate tax deducted on their wages would be Is 2d each" per week, or a total of 28s;, but if the tax was merely computed on the total amount payable it would be 275, and the employer would Se misappropriating an amount of one Shilling. In large pay-rolls this, of course, would be multiplied many times, sndthe loss of tax actually deducted from the worker would be.considerable. ■ Employers should realise- the ; .serious Jesuit of. non-observance, of''the 'regulations, and may. be' reminded that on fommary conviction they are liable to a fine, of £20,. while there is-also provision fora further fine equal to treble the amount of the charge that should kave been deducted... ■-■■■-