THE WAGE TAX.

Hauraki Plains Gazette, Volume XXXXII, Issue 2803, 20 November 1931, Page 6

THE WAGE 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 in the aggregate of the deductions from each individual whose name appears on the wages sheet. If an employer with a weekly or monthly pay-roll of. say, £l,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 fenny on each 6s 8d or 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 10s weekly, and the legitimate tax deducted on their wages would he Is 2d each per week, or a total of 28s; but if the tax were merely computed on the total amount payable it would be 275, and the employer would be misappropriating an amount of one shilling. In large pay-rolls this, 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 regulations, and may be rdminded that on summary conviction they arc liable to a fine of £2O, while there is also provision for a further fine equal to treble the amount of the charge that should have been deducted.