TAX ON SALARIES AND WAGES

Southland Times, Issue 23782, 1 April 1939, Page 5

TAX ON SALARIES AND WAGES

EMPLOYER TO MAKE DEDUCTION — POSITION OF DOMESTIC SERVANTS The charge on salaries and wages at the rate of Id for every 1/8 of the income (1/- in the £) is deductible by the employer at the time of payment. The charge is payable by the employer in Social Security stamps, and within three days after deduction these must be affixed in the wages book, or upon the wages receipt, and cancelled by means of the signature or initials, and the date. Where the total amount of the charge deducted exceeds £5, payment may be effected at any money-order office. The receipt issued for such payment should be attached to the relative wages book or wages receipt. The wages book or receipt must be kept by the employer and be available for inspection for a period of not less than five years. Employers who are unable to justify their inability to produce such wages books or receipts when so required by the department’s inspectators will be required to pay in cash the amount of the charge involved: the retention of wages books and receipts is accordingly a matter of the greatest importance. The Commissioner of Taxes has decided that for the purposes of assessing contributions for domestics in private employment, the value of board and lodging shall be assessed at £1 a week. Where lodging only is provided, the assessment is 5/- a week. For board only it is 15/-. In the case of domestics who are not provided with board or lodging, but are given meals, the value of each meal for the purpose of the contribution is 1/On the assessment of £l, the social security charge will be 1/-; on 15/- it will be ninepence, and on 5/- threepence. Twenty meals at 1/- each will call for the payment of 1/- to the social security fund. UNEARNED INCOME Declarations in respect of income other than salary or wages derived during each year ended on March 31 are required annually, during the month of May, from all persons 16 years of age or over except persons in receipt of total disability war pensions. Where the person concerned has no such income, a “nill” declaration must be furnished. In respect of unearned income derived during the year ended March 31, 1939, and subsequent years, the Social Security charge is payable at the rate of Id for every 1/8 or fraction thereof (1/- in the £) contained in the whole of the income appearing in the declaration. The charge is due and payable by equal instalments on the first day of the months of May, August, November, and February in each year. The first instalment must be paid at the money order office when the declaration is presented, or forwarded with the declaration to the Commissioner of Taxes, Wellington. A similar amount must be paid not later than one month after the due date of each subsequent instalment. All instalments may, if desired, be forwarded with the declaration.

A penalty of 10 per cent, is payable on any Social Security charge not paid within one month of the due date.