SOCIAL SECURITY.

Opunake Times, 28 March 1939, Page 4

SOCIAL SECURITY.

BASIS OF NEW TAX

BOAivD AND LODGING

LillUwi k’-vlitl KJ'CUilty ACI, u:uui a.C tO UO mauo iIUIU Apll. X , UiO i/ui>CU oil a cuill bof I/- ill the XI, hut only oil WUgOft, ..iiii.ico .ki»a unci' a».coiuc, uui._ uibo on Uio value Oi oiner OcnehLo, • u.u a.. UUi.iu, longing OX - liio use Oi •<• nou.-e, given in iu v coarse oi employ Domestic workers nr private mwi-.', hotels or boarding uou.es, otiler classes of uotcl worne.o, nu-.e., seamen, and also lunu woii.c.o are given board or lodging o. *‘ •> equivalent, are particularly alloc ted by the embracing natureo oi the charge.

The provision in the Act relating to the imposition oi the charge on ‘ oihci benefits” is contained in section 11s (2), which reads: “Where any person, in, respect oi his employment or service, is provided witii 'board or lodging or the use of a house, or any other benefits shall, for the purposes of this part of the Act, be deemed to be salary or wages, and the charge in respect thereof shall be payable from time to time as the charge becomes payable in respect of that part of his salary or wages as is payable in money.’'' Deduction from Salaries

In applying this provision, the employer will make the appropriate do ductiona from wages or salaries and cancel the necessary social security stamps in the same manner as he will for cash wages. The value of board and lodgings is assessed in some industrial awards and. agreements, and also in regula-

tions issued under the Agricultural Workers’ Act. No method of assessment so far exists, however, for certain other classes of workers affected. Value of Meals Domestic workers in private homes escaped unemployment taxation, but are liable for social security tax.

Inquiry from the Commissioner of Taxes, Wellington, elicited the information that the department has not yet determined the manner iu which the value of board and lodging given jo private domestics is to be assessed. This question will doubtless be made the subject of a departmental or Ministerial statement later. Allowances Under Awards It was also stated that the value of meals given to domestics who worked 'by the day and were not given lodging would have to bo taken into consideration iu deducting the amount of employment tax.

If the department assesses board and lodging ou the scale provided in awards and agreements covering workers in licensed and private hotels and boarding houses, it may exceed the cash value of wages received by some domestics in private homes, who, because of age or disabilities are employed at a fairly nominal remunera-

tion. Tho awards referred to provide for a lodging allowance of 10/- and boarding allowance of 20/- a week, or tho equivalent in cash. There is a'so provision that on a worker's day off meals will be provided, or 3/ paid in cash. The social security assessment for workers under the awards will therefore be based on 33/ a week above cash wages. Restaurant workers must be provided under their awards with two substantial meals each full working day, and one meal on the half-day, the cash equivalent of a meal being assessed at 1/-. Such workers will

therefore pay taxation on 11/- a week above their wages. Where houses are provided for workers, tho equivalent rental value will have to bo determined, the Commissioner under the Act being the arbiter iu tho case of any dispute.