The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1936-12-24
Both Houses Reach
accord On Job Bill
Insurance Tax Burden Placed On
Employers Under Compro-
mise Measure


ance bill passed the house by a
vote Of lei to IL Tuesday, however,
it met opposition upon reaching the
senate. Controversial phases of the
act were settled Tuesday night
when both a conference committee
from both houses reached an agree
ment. Members of the conference
committee receded from positions
taken earlier Tuesday when each
house rejected the others plan.
After a study of the committees
work legislative leaders looked for
of both houses. The
measure as set up by the commit
tee calls for:
Limitation of unemployment
insurance taxes to employers
of eight or more persons for
1886, and including all employ
ers of one or more persons, be-
ginning with January /, 1887.
Employers will bear the en-
tire cost Of building up the
fund, there being no provision
for employee contributions.
Minimum benefits to unem-
ployed individuals of Sc per
week, and maximum benefits of
SIS per week.
Establishment Of a pool type
of fund, to which all employ
ers would contribute.
Establishment of a merit
rating for employers, to give a
lower tax rate for sustained
employment.
Reward System Provided
The conference committees re-
port established system Of re-
ward, in the form of lowered taxes
for employers who maintain en-
ployment on an even keel.
When contributions Of an indi-
vidual employer earning the merit
rating reached an aggregate Of TX
per cent of his average annual pay
roll, the tax rate against him would
be 1.8 per cent, instead Of the max
imum of 81 per cent. He still would
pay the 3 of one percent to the
federal government.
Under the federal act, the maxi
NUNS are g of one percent to the
state and L of one per cent to the
federal government in 1896, is
per cent state and 2 Of one per cent
federal in 1887, and 81 per cent
state and 3 Of one per cent feder.
al in 1888 and thereafter.
State Levy Would Drop
When the merit rated employers
aggregate contribution reaches II
per cent of his average annual pay
roll, his state levy would drop to
1.3 per cent, and when 1t reaches
1914 per cent of the pay roll the
levy would be reduced to 8 Of one
per cent.
Should an employer be willing
to guarantee sustained employment
of at least 40 weeks a year to his
employees, he could elect to file Sc.
curity with the agency that will
handle the unemployment insur
ance, and have his tax rate set al
IS of one per cent per year.
Tax Reduction Limit Fixed
The conference report provides
that no tax rate against any EN-
ployer can be reduced below o.
per cent of his pay roll, until hi!
aggregate contribution totals al
least twice the amount in unem
ployment benefits paid to his EN-
ployes the preceding Year.
Members of the conference com
mittee began their work immed
lately after dinner and kent at /
more than four hours befor,
reaching an agreement. Frequent
ly the argument became heated.
Principal points Of discussion
were the provisions of the meri
rating system, and guarantees TO
keeping the unemployment insur
ance fund solvent.
The conferees were Senators M
j. Calvin, of Winona, J. l.. Mcleod
of Grand Rapids, Patrick L. Farm
and, of Hibbing, A. o. Sletvold, O
Detroit Lakes, and Karl Neumeier
of Saltwater, and Representative
L. E. Brophey, of Minneapolis, X
G. Johnson, of Forest Lake, Car
J. Eastwood, of Ortonville, Charles
]. Wangensteen, Of Chisholm, ant
Herman Dammann, of Plato.