The Redwood gazette., 1936-02-06
New Law Applies On Wages
Of About 200 Employees;
Garage Heads List
Rate Is One Per Cent This
Year, Two Per Cent in '37
And Three Thereafter

Falls firms employing between $50
and 200 persons come under the
terms of the unemployment COM
pensation section of the federal
social security act in effect since
January l, check-up by The Ga
Zette reveals.
Such firms will pay tax of one
per cent on their payrolls this
year, two per cent next year and
three per cent the following year
and thereafter which will 60 into
reserve fund to prevent or mini
mize relief rolls and breadlines in
future depressions. Workers who
lose their jobs during such busi-
ness recessions and find it impos-
sible to obtain other work will be
able to draw compensation from
the payroll tax fund.
Only concerns with eight or
more employees come under the
act, Of which there are eight in
Redwood Falls, but stores which
are part of larger organizations
and other companies such as the
telephone companies and COM
pany-owned oil stations and bulk
plants also will be subject to the
tax.
Largest employer in the city,
the check-up showed, is the Red
wood Falls Motor company which
has day and night service, a large
sales and repair staff and an office
force requiring 21 checks each
Saturday night. Montgomery
Wards at times has staff Of over
20 but lists a regular payroll Of
16. George w. Huhnerkoch, con-
tractor, has a crew varying from
IL to 80 depending on the season
and work.
The Gandrud Creamery COM
pany employs IL and the Rural
Telephone company, 10 while The
Gazette has nine, the Citizens
bank, eight and the Ramsey Ho-
tel, eight. The Redwood Falls
Light and Power company now
has seven employees but expects
to come under the act because It
hires extra help frequently.
Other firms coming under the
act include the National Tea COM
pany, the Gamble store, the Red
Owl store, the Tri-State Telephone
and Telegraph company, Forsters
Furniture company, Sward-Kemp
Drug company, the Atlantic and
Pacific Food stores, Model Dairy,
Eagle Roller Mill company, Fit
gers Brewing company, National
Atlas Elevator company, Bots
ford Lumber company and ]. C..
Penney company as well as sew
eral oil stations owned by the COM
panies and operated by salaried
employees.
To induce states to adopt their
own unemployment compensation
laws, the federal government will
allow a credit, up to 80 per cent of
the employers payroll tax to
those states enacting their own in
surance legislation.
Under the procedure of the plan
employees who are laid off or dis
charged are required to register
at the nearest public employment
office and payment of compensa-
ton follows if after specified
waiting period the applicant is
still without a job. The waiting
period is to be determined by the
state legislature.
Compensation consists of the
payment of a certain percentage
of the individuals previous wage,
in most states the rate is set at
SO per cent, for a limited period of
involuntary unemployment, in
most cases 16 weeks.
The social security program, be-
sides the unemployment plan, also
includes a system of old age as
sistance, more familiarly known
as old age pensions, to be financed
half by the federal government
and the other portion by the state;
q federal system Of old age bene-
fits to which all employees in all
except certain exempted activities
will contribute equally with their
employers; a system of aid to de-
pendent children toward which the
government will contribute one
third of the cost in each state and
various subsidies to states for well
fare and health work.