Evening star., 1936-03-13
JObLESS TAX LAW
RULESARE ISSUED
Regulations for Payment
Announced and Types
of Service Defined.
Ry the Associated Press.

BY the Associated Press.
The long-awaited regulations gov
erning payment OF the unemploy-
ment insurance tax and defining
the types of service excepted under the
social security act were issued today
by Guy T. Helvering, commissioner
Of internal revenue.
The tax became effective last jan
uary ! and is payable January 81,
1887. Based on total wages payable.
the rate Of the tax is per cent for
the calendar year 1886, 2 per cent
for 1887 and 3 per cent for 1888
and each year thereafter.
Nine States have set up unem-
ployment insurance systems satisfac-
tory to the Social Security Board and
employers in those States will be en-
titled to credit 80 per cent of what
they pay into State funds against
the total due the Federal Government.
Where no State insurance plan ex-
lists, the taxes will be paid directly
into the Federal Treasury, with no
benefits for employees.
Firms Subject to Tax.
Every person who employs eight or
more individuals on total of 20 or
more calendar days during calendar
year, each day being in a different
calendar week, is, with certain ex-
ceptionS, subject to the tax.
Helvering said it was not necessary
that the weeks be consecutive nor
that the persons employed be the
same. 1t is sufficient. he said, if the
total number of individuals employed
during the "a hours of a calendar
day is eight or more, regardless Of
the period of service during that
day or the basis of compensation.
Physicians, lawyers, dentists, vet
erinarians. contractors, subcontractors.
public stenographers, auctioneers and
others who follow an independent
trade, business or profession, in which
they offer their services to the public
were held to be independent con-
tractors and no. employers, and,
therefore, not subject to the tax.
Under the terms of the social secur-
fly act, employers of agricultural
labor, domestic servants and officers
and members of ships crew are ex-
cepted from the tax. Also excepted
are Federal, State and local govern
ments and religious and charitable or
ganizations. Another exception is in
cases of family employment, such as
where a husband employs his wife
or children under 81 work for their
parents.
Agricultural Labor Defined.
The regulations defined agricultural
labor as including all services per-
formed by an employe on farm, in
connection with cultivation and har-
vesting of crops or the raising, feeding
or management of live stock, bees and
poultry.
Services of an employe in connec-
tion with the processing of articles
from materials which were produced
on q farm, as we'll as the packing,
packaging, transportation or market
ing Of those materials, also are ex-
cepted.
These services, however, must be
performed by an employe of the owner
or tenant of the farm on which the
materials were produced, and must be
incident to ordinary farm operations
as distinguished from manufacturing
or commercial operations.
Domestic service excepted was ruled
to be that performed in or about a
private home by cooks, buffers, maids,
Wallets, laundresses, furnace men. gar
deners, footmen, groonls and chauf-
feurs of automobiles for family use.
Domestic service performed in
boarding or rooming houses, fraternity
houses, clubs, hotels or commercial
Offices is not excepted and employers
must pay the tax.
The basis of the tax, Helvering
said, Is the total amount of wages
payable by an employer with respect
to employment during the calendar
year, regardless of the time of actual
payment.
The term wages" was held to mean
al remuneration for employment,
whether payable in money or some
thing other than money.
Helvering said the tax was due and
payable without assessment or de-
nand on or before January 81 next
following the close of the taxable
year. The payments may be made in
four equal installments.