UNEMPLOYMENT FUNDS

Waipa Post, Volume 43, Issue 3391, 22 December 1931, Page 8

UNEMPLOYMENT FUNDS

GRATUITIES TO EMPLOYEES.

A TECHNICAL LIABILITY. (By Telegraph. Press Association). AUCKLAND, this day. The question has been raised whether the unemployment tax of od in the pound on wages and salaries is chargeable upon a “Christmas box” received from an employer, a typical instance being a monetary gift by a householder to his gardener or other employee at Christmas. The Unemployment Amendment Act makes liable to the tax every person who receives in consideration of his or her employment or service . . . any salary or wages (including any bonus, gratuity, extra salary or emolument of any kind in respect of or in relation to employment or service).” Strictly speaking, the definition appears to cover gratuities of the kind mentioned , and if so the employee receiving a “ Christmas box of 10s would have to affix special stamps to the value of 2d to his wages receipt. However, the employer could no doubt render this unnecessary if he wished by making a gift in kind or by handing a married employee, the money with instructions to give it to his wife. Gratuities to the postman, the dustman or anyone else not in the giver’s employ are not subject to the tax mentioned. They are taxable as “ income other than salary or wages.”