UNEMPLOYMENT TAXES.

New Zealand Herald, Volume LXIX, Issue 21168, 28 April 1932, Page 10

UNEMPLOYMENT TAXES.

OPERATION NEXT MONDAY. DUTIES OF MEN AND WOMEN. WAGES AND OTHER LEVIES. declaration of income. The new scale of unemployment taxes will come into operation next Monday, and during the following 30 days it will be the duty of every man arid woman to go to a money-order office and make a declaration of income otlier than salary or wages for the year ended March 31, 1932, either handing it to the officials or posting it to the Commissioner of Taxes. Wellington. Tho law requires that even if no other income was received during the year, a declaration to that effect must be made. Except in the case of the wages levy, which must be deducted by employers as the wages are paid, 30 days grace are allowed for the payment of other unemployment taxes, at the end of which period a penalty operates. It will be as well for everybody to know where he or she must go for the purpose of making the income declaration and paying the taxes. Last year facilities were provided in tho Wcllesley Street post office for tho receipt of unemployment taxes. This year that office will be closed and larger premises opened on tho second floor of the chief post office, where a specially-trained staff will be employed on Monday and the following 30 days receiving taxes, offering advice and aiding taxpayers to fill in their declaration forms. Convenience of Taxpayers. All residents of Auckland and suburbs are urged to attend at this special office instead of paying their taxes at suburban money-order offices, as the attention they will receive at the chief post office is moro expert and the officials at suburban and country offices will be hard pressed if they are subjected to this extra business in addition to their ordinary duties.. As the unemployment levy of 5s a quarter and the emergency unemployment charge of Id in every Is 8d or fraction thereof of income other than wages and salary both become payable on Monday, it will meet the convenience of those people who are liable for these taxes to pay both of them when they visit the post office rather than make two separate Ci.ll Is.

Under the amending legislation women are again exempt from payment of the 5s levy, but, being liable to the emergency unemployment charge, will pay the new rate o£ Id in every Is 8d on wages and salaries. They will also pay the same amount of tax on income other than wages and salary, with the exception that the exemption of £250 of income has been reduced to £2O. The duties of women under the amending legislation can therefore be expressed as follows: Obligations of Women.

(1) No woman has to pay the unemployment levy of 5s which men have to pay every three months. (2) Every woman of 16 years and over, with the exception of domestic servants, must pay Id in every Is 8d or fraction thereof of wages or salary earned on or after May 1, 1932. This tax, known as the emergency unemployment charge, is required to be deducted by the employer from the employee's wage or salary, so that, provided the employee knows (hat this is being done, responsibility for its payment to the Government is taken from the shoulders of the individual taxpayer.

(3) Every woman, no matter what her age, who is in receipt of any income other than wages or salary, must fill in the declaration form, to be obtained at moneyorder offices, stating precisely what her incomo from such sources was during the year ended March 51, 1952. The officials will then deduct £2O, which is the only exemption allowed, and tax the remainder at the rate of Id in every Is Bd. The total amount of tax for the year may be paid in one lump sum or in quarterly instalments, the first being payable during the month commencing on Monday and the other instalments on August 1 and November 1 next, and on February 1, 1955. What Men Have to Pay. The position of men is as follows: (1) Every man of 20 years or over must pay 5s unemployment levy during May. Similar amounts will become due quarterly, being payabie on August 1 and November 1 next, and on February 1, 1933. (2) Every man of 16 years or over, except relief workers, must pay the emergency unemployment charge of Id in every Is 8d or fraction thereof of wages or salary earned on or after May 1, 1932. As in the case of women, this tax is deductable by the employer from the employee's wages or salary and paid by the employer to the Government. (3) Every man, no matter what his age, who is in receipt of income other lhan salary or wages, must fill in the declaration form stating the amount and sources of his incomo received during the year ended March 31. 1932. There is no incomo exemption in the case, of men, so tho tax payable will be at the rato of Id in every Is 8d on the total amount, to be paid in one lump sum or quarterly, as the individual taxpayer chooses. The first quarterly payment is duo on May 1 and must be paid during that month. Method of Assessment. It, will be observed that the method of computing what tax shall be paid on income other than wages or salary is somewhat different from that employed last year. It was then assessed on two-thirds of the income received during the year ended March 31, 1931, and the scale was 3d in the pound. Two payments were thus made, ono on November 1. 1931, and tho other on February 1, 1932. The charge is now to be levied on an entirely new year and tho rato has been greatly increased. An innovation in the amending legislation is (lie inclusion of a hardship clause with respect to tlie payment of tho emergency charge. It is similar to the existing hardship clauso respecting tho unemployment levy and empowers tho Unemployment Board to grant exemption from payment of the charge to any person proving extreme hardship.