THE WAGES TAX

Hokitika Guardian, 21 November 1931, Page 7

THE WAGES TAX

METHOD OF DEDUCTION,

CALCULATED ON INDIVIDUAL WAGES.

Employers”'who pay in one sum the emergency unemployment charge 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. 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 th<> wage? sheet. If an employer with a weekly or monthly pay-roll of, say, £I,OOO, 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 be computed in all cases .at one penny on each 6s 8d or part of ;6s Bd, and no doubt there would be many case o where one penny was de ducted for a portion of 6s Bd, For instance, 24 employees may each be in receipt of £4 10s weekly, and 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 ibe 275, and the employer would be misappropriating an amouni of one shilling. In large pay-rolls tins, of course, would be multiplied many times, and the loss of tax actually deducted from the worker would be considerable. Employers should realise the serious result of non-observance of the regula tions, and .may be reminded that on summary conviction they are liable to » fine of £2O, while there is also pro vision for a further fine equal to treble the amount o* the charge that .should have beer deducted.