TAX ON WAGES

Poverty Bay Herald, Volume LXVI, Issue 19880, 6 March 1939, Page 4

TAX ON WAGES

SOCIAL SECURITY

DEDUCTION ON APRIL 1

RATE ON DATE OF PAYMENT

It is authoritatively stated that wages or other income paid from the time the Social Security Act comes into operation on April 1, even although they may cover a pnor period, will be subject to the tax under the legislation of - Is the pound.

Taxation is paid, according to this authority, at the rate in force at the time of payment of wages, _ salary, or other income. iNo apportionment is permissible, so that the amount representing services contributed before April 1 would be assessed for taxation at the Employment Act rate of 8d in the pound.

The section of the Act dealing with an employer's liability .for collection states, inter alia: "The charge payable as hereinbefore provided hi respect of any salary or wages shall be deducted therefrom at the time of pavment by the employer or person by whom the salary or wages are paid. . • • "For the purposes of this section the expression 'salary or wages' includes any bonus, gratuity, extra salary or emolument of any kind in respect of or in relation to employment or service, and includes special payments, such as witnesses or jurors' fees and any other payments or fees of a like nature." This section embraces directors' fees.

April 1 .falls on n Saturday. While weekly wages and salaries paid on that day will therefore be subject in full to the social security tax, if, in pursuance of practice, they are paid on Friday or an earlier day in the week, they will be subject to 8d in the pound only. Some concerns end their wages week on days other than Saturday or Sunday. There will, of course, be no allowance in taxation at the 8d rate when such wages are paid in the week following the inception of social security.