WAGE TAX REDUCTION

New Zealand Herald, Volume LXXII, Issue 22226, 28 September 1935, Page 12

WAGE TAX REDUCTION

OPERATION ON TUESDAY • ' EMPLOYERS' DIFFICULTY TWO RATES IN ONE WEEK [by telegraph—special reporter*) WELLINGTON, Friday Some difficulty is likely to be caused to business firms in the making up of salaries and wages next week. The reduction of 2d in the unemployment tax —from lOd to 8d in the poundwill become effective on October 1, but as that falls on a Tuesday and there, foro in the middle of a pay period in cases where wages are paid weekly or fortnightly, two rates of taxation will operate in the first wage payment after that date. The actual position next week will be that accountants and their staffs will have to deduct from wages pro. portionate amounts in taxation at lod and 8d in the pound, according to number of days in the pay period that fall in September and October respectively. Representations were made to the Unemployment Board by Mr. T. 0. Bishop, secretary of the New Zealand Employers' Federation, asking that the reduction should be made retrospective to avoid the operation of two rates of taxation iu one week. However, a Gazette notice makes the reduction operative from October 1 (Tuesday) and the legal position does not permit of any retrospective arrangement.