OBLIGATIONS OF THE INDIVIDUAL

Evening Post, Volume CXXVII, Issue 71, 25 March 1939, Page 10

OBLIGATIONS OF THE INDIVIDUAL

Particulars of the individual's obligations under the Social Security Act, which comes into operation on April 1, are set out below. They are taken from a pamphlet which the Government has issued or is issuing to householders. The Social Security contribution consists of a registration fee, and a charge of one penny for every Is 8d (Is in the £) on salaries and wages and other income. The registration fee and charge will be collected in the same manner as the registration levy and the employment charge of 8d in the £ previously payable. The Commissioner of Taxes will continue to be responsible for the collection of both the fee and the charge. By the Social Security Act, all persons (male and female and including natives) 16 years of age or over, who are ordinarily resident in New Zealand, are required:—(i) To register within one month after April 1, 1939; (ii) upon registration to obtain a coupon-book; (iii) to pay the Social Security charge at the rate of Is in the £ upon all salary and wages earned; (iv) unless exempted, to pay the annual or quarterly instalments of the registration fee as these fall due; (v) to furnish during May of each year a declaration as to income other than salary or wages derived during the. year ended on the previous March 31, and to pay the Social Security charge upon such income. Male persons who have already registered under the Employment Promotion Act are not required to re-register; these will continue to use the coupon-books (if any) already held by them. Persons in receipt of a war pension granted in respect of total disability are not required to make the declaration mentioned in (v) above. REGISTRATION. Persons liable to register must do so within one month after April 1, 1939. In the case of those who attain the age of sixteen after April 1, 1939, or become ordinarily resident in New Zealand after that date, registration must be effected within one month after such sixteenth birthday, or after be- ' coming ordinarily resident, as the case , may be. Similarly, persons who, being required to register, are temporarily absent from New Zealand on April 1, 1939, must register within one month after their return. j REGISTRATION FEE. All persons sixteen years of age or over are required to possess a coupon book, and, unless exempted, to pay the registration fee as follows:—(a) For male persons under 20 years of age and for all female persons, the fee is 5s annually, and is due and payable on the Ist day of May each year. The first payment becomes due on the first day of May, 1939, or the first day of May following the 16th birthday, as the case may be. (b) For male persons 20 years of age or over, the fee is 5s quarterly, and is due and payable on the first days of February, May, August, and November in ' each year. On a male person attaining 20 years of age, the first quarterly instalment becomes due on May 1 next following

DETAILS SET OUT IN PAMPHLET

I payment of the registration fee will result in a penalty of sixpence for every month or part of a month that elapses after one month from the due date, with a maximum of 2s 6d for each instalment. COUPON BOOKS. In the case of female persons and youths, registration fee coupon books with instructions and general information therein, including exemption provisions, will be issued from the money order office where registration is effected. In the case of male persons 20 years of age or over, the current registration levy coupon books issued under the Employment Promotion Act are being continued for use until expiry in August, 1940. . EXEMPTIONS FROM REGISTRATION FEE. Certain persons, as indicated hereunder, are exempt wholly or partially from liability to pay the registration fee: (i) Persons in receipt of certain benefits from the Social Security Fund and not in receipt of income. Every person who, on the due date of any instalment of the registration fee and for at least the whole of the month commencing on such date, is personally in receipt of a monetary benefit payable from the Social Security Fund (not being a superannuation benefit or a family benefit) and who is not in receipt of any salary or wages or other income, is entitled to claim exemption from that instalment. (ii) Total Disability War Pensioners. —Every person, who, having served in the war of 1914-1919 as a member of any of his Majesty's Naval, Military, or Air Forces, raised in any part of the British Dominions, is on the due date of any instalment of the registration fee and for at least the whole of the month commencing on such date in j receipt of a. pension granted by thej Government of any British jurisdiction in respect of his total disablement through such service, is entitled to claim exemption from that instalment, h'respective of income; ° (iii) Persons in Certain Institutions and Not in Receipt of Income. —Any person who, on the due date of any instalment of the registration fee and for at least the whole of the month commencing on such date is (a) an inmate of any mental hospital, under the Mental Defectives Act, 1911; or (b) an inmate of any public or private charitable institution established for the relief of aged, needy, or infirm persons, or of any public hospital established under the Hospitals and Charitable Institutions Act, 1926; or (c) an inmate of any prison, reformatory, institution, or Borstal institution; or (d) enrolled as a student of any educational institution; or (c) a member of a religious body whose rules forbid the possession of any property except clothing and similar personal effects; or (f) registered as unemployed; and who did not, on or subsequent to such due date and prior to the making of the claim for exemption, receive or become entitled to any salary or wages or other income, is entitled to claim exemption from that instalment.

prior to the last day for payment of the next instalment, the exemption granted lapses and payment of such previously-exempted instalment must be made. If- not so paid the employer, is required to deduct the amount thereof from the first salary or wages payable. A person in receipt of maintenance or allowance provided for or paid in respect of attendance •as a student at any educational institution in terms of any scholarship or bursary is exempt if such maintenance or allowance is the only income. Maintenance or allowance provided for or paid to a trainee at any teachers' training college in respect of attendance at such college .is income, and such trainees are not exempt. CLAIM FOR EXEMPTION. A person who is entitled to exemption from payment of any instalment must complete a declaration of exemption on the appropriate form obtainable at any money-order office. Such declaration, together with the coupon-book, must be presented at a money-order office not later than seven days after the last day for payment of that instalment. Failure to do so may result in Court proceedings being instituted against the contributor. Persons who continue to be entitled to exemption must renew the claim for exemption as each instalment falls due. CHARGE ON SALARIES AND WAGES. The charge on salaries and wages earned on or after April 1, 1939, is at the rate of Id for every Is 8d of the income (Is in the £) and is deductible by the employer at the iime of payment. The charge is payable by the employer in Social Security stamps, and within three days after deduction these must be affixed in the wages book, or upon the wages receipt, and cancelled by means of the signature or initials, and the date. Where the total amount of the charge deducted exceeds £5, payment may be effected at any money-order office. The receipt issued for such payment should be attached to the relative wages book or wages receipt. , The wages book. or receipt must be kept by the employer and be available for inspection for a period of not less than five years. Employers who are unable to justify their inability to produce such wages books or receipts when so required by the Department's inspectors will be required to pay in cash the amount of the charge involved: the retention of wages books and receipts is accordingly a matter of the greatest importance. It should be particularly noticed that the charge is payable by all domestic servants, whether in private homes or otherwise. Under the Employment Promotion Act, the wages of female persons in respect of private domestic service were exempt. Under the Social Security Act, any such wages, together with the value of keep, earned after March 31, 1939, are liable to the .charge. For private domestic servants the value of keep should be assessed as follows: —Board ( and lodging, £1 per week; board only, 15s; lodging only, ss. If meals only are provided, Is for each meal, with a maximum of 15s per week. These values should be added to the cash wages and the charge (Id for every Is 8d or part thereof included in the total amount) deducted and accounted for at the time of payment, by means of Social Security stamps. INCOME OTHER THAN SALARY OR WAGES. Declarations in respect of income other than salary or wages derived during each year ended on March 31 are required annually, during the month of May, from all persons 16 years of age or over except persons in receipt of total disability war pensions. Where the person concerned has no such income, a "nil" declaration must be furnished. In respect of income derived during the year ended March 31, 1939, and subsequent years, the Social Security charge is payable at the rate of Id for every Is 8d or fraction thereof (Is in the £■)" contained in the whole of the income appearing in the declaration. The charge is due and payable by equal instalments on the first day of the months of May, August, November, and February in each year. The first instalment must be paid at the money order office when the declaration is presented, or forwarded with the declaration to the Commissioner of Taxes, Wellington. A similar amount must be paid not later than one month after the due date of each subsequent instalment. All instalments may, if desired, be forwarded with the declaration. A penalty of 10 per cent, is payable on any Social Security charge not paid, within one month of the due date. I HARDSHIP. In any case where payment of an in- . stalment of the registration fee or of the charge upon income other than salary or wages would, by reason of financial circumstances or sickness, cause serious hardship, the Commissioner of Taxes may grant exemption from or postponement of payment. Persons who consider they are entitled to exemption on the grounds of hardship should make application in writing to the Commissioner of Taxes, Welling- ■ ton, fully explaining the circumstances, , immediately after the instalment in question becomes due. PENALTIES. Substantial penalties are provided for . the following offences under the Social Security Act and Regulations:— Registration and Registration Fee.— . Failure to register; failure to obtain a i coupon-book; failure to pay instalments of the registration fee; employing per- [ sons who have failed to register, or who '. are in arrears -with the registration fee. ; Salaries and Wages.—Failure to de- ; duct charge from salaries or wages ; paid to employees; failure to account '. for charge so deducted. Income Other than Salary or Wages. i —Failure to furnish any declarations i or information required; furnishing of ■ false particulars; wilful evasion in pay- • ment of the Social Security charge.

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