Evening star., 1936-02-13
PAY ROLL TAX PAID
with PROTEST BY
Is EMPLOYERS
Only 1000 Returns Filed in
10000 Affected by
Law Here.
RIGHT is RESERVED
TO TEST NEW LAW
Merely Precautionary Measure
to Avoid Waving of 0p-
portunity to Recover.


of the constitutionality of the social
security act, which may affect the Dis
trict unemployment compensation
system, some 25 local employers have
paid their pay roll tax due Saturday
under protest, it was disclosed today.
John A Marshall, who will be in
charge of the unemployment COM
pensation program for the District did
not reveal the names of those who have
paid under protest or the amounts of
their taxes.
He said, however, that only about
1000 employers of a total of some
$4,000 affected by the law have filed
returns. 1t was expected additional
payments under protest would be made.
Under the District law, employers of
one or more persons, except in speci-
fed exempted industries. are required
to pay l per cent pay roll tax dur
ing 1886. In operation the tax falls
due by the 18th of the month follow
ing. simultaneously with the local
levy employers of eight or more per-
sons are being subjected to l per
cent Federal tax payable in lump
sum or in quarterly installmentS dur
ing 1887. Credit for the District tax
payment up to 90 per cent of the Fed
eral liability will be given to the in
dividual employers.
Possibility of Change.
Although invalidation of the Fed
eral legislation might not affect the
District law because of the peculiar
relationship between the District and
Congress, several local attorneys were
understood to be advising their clients
to pay under protest so they will be in
change in District procedure that may
follow Supreme Court ruling.
Some employers, it was learned.
are including in their report and tax
return the following statement:
"The accompanying report and pay
ment under the District of Columbia
unemployment compensation act are
submitted herewith under protest.
duress and compulsion, for the reason
that if payment be not made we shall
be liable for penalties imposed by the
act.
I'VE reserve the right to take such
procedure as may be necessary to de-
termine the constitutionality of the
act, and to secure a refund of the
amount due"
It was reported local attorneys,
pending a further study of the act,
are not advising their clients as to
its constitutionality at this time; The
payment under protest, it was said, is
merely a precautionary measure so
they will not be held to have waived
their rights by unconditional pay
ment.
Marshall reported he had deposited
with the Treasury on Monday S2,017,
on Tuesday 1891, yesterday $2,657 and
today $5,047.
Members of the Unemployment
Compensation Board were scheduled
to meet early this Afternoon to consider
a number of proposed amendments to
the act, which Marshall said were in
tended primarily to clarity the mean
ing
At the same time, it was revealed,
leaders in the insurance business are
urging the board to amend the act
to exempt from the pay roll assess
ment those who are engaged here as
insurance agents. 1t is contended
these persons are not subject to the
act since they are in the class of
independent contractors" Marshall
estimated there are approximately
1000 persons who would fall in this
class, as insurance agents, if the
change Is made.
It was reported the Life Presidents
Association and the Casualty Execu-
tives' Association were urging the
change
Members of the Compensation Board
are: District Commissioners Hazen,
Allen and Sultan and Daniel j. CAL
lahan, representing employers, and
John Locher, representing labor.
Establishment of permanent
office for the Unemployment Insur-
ar1ce Board is expected within the
> next few weeks, when the National
Security Board allocates funds. The
headquarters will be at 47O Indiana
avenue, Marshall announced.
Pending the allotment from the
security board, work has been carried
on by the Office force of the District
Of Columbia Insurance Department,
under direction of Marshall and j.
Balch Moor, who will succeed Mar
shall as insurance superintendent.
Total Estimated at. 100000.
Marshall estimates the total pay
roll tax collection from the District
in 1886 will be approximately
100000. The funds will be deposited
IN the United States Treasury, and
payments will be made, beginning in
1888, to all unemployed persons who
have been working in the District
since operation of the Act.
Expenses will be borne by an allot-
Ynent from the National Security
Beard, and all taxes will be credited
without deduction to the unemploy-
ment insurance fund.