The Daily Alaska empire., 1937-10-06
Unemployment
 Compensation
 Now Explained
Law as Pertains to Alaska Was Passed by Re-
 cent Legislature

Every State and Territory of the United States now has an uneem- ployment law which conforms with the Federal Social Security Act The Alaska Unemployment Con- pensation Act was passed by the Thirteenth Alaska Leislature, ex- traordinary session.
 To begin with let us dwell brief ly upon the Federal Social Security Act so that we may recognize the relationship between the Alaska Un- employment Compensation Act anc the Federal Social Security Act
 The two titles of the act which we, the general public, are most in- terested in are Titles VIII and TX
 Title TX of the Federal Social Se- curity Act levies on employers ex- else tax on employers of eight or more individuals. The tax under Title Tx for the calendar year 1886 was 1 percent, for 1887 it is 2 per- cent, and after December 31, 1887 will be percent of the employers total payroll
 Excise Tax
 With this employers excise tax in effect the Federal Government made a proposition, you might say, to the different States advising them that the State whose Legislature passed a State Unemployment Com pensation Act which would meet the approval of the Federal Social Se- curity Board would be entitled to deduct from the Federal tax levied under Title TX, to the extent of 90 percent of that tax, the amount of their contributions to the State unemployment compensation fund
 For example, in the event the Territorial Legislature had not passed an unemployment compen- sation Act which conformed with the requirements of the Social Se- curity Board, an employer of eight or more individuals would have been required to pay into the Fed eral Government a tax for the cal endar year 1887 of 3 percent.
 This money would have gone into the Federal Treasury and no part of it would have benefited Alaska or Alaskans. By virtue of having an Unemployment Compensation Act in the Territory, the employer is allowed to take credit for the tax of Is percent levied under the Un- employment Compensation Act for the calendar year 1887 on the Fed ceral tax of 2 percent-in other words, 90 percent. In short, the employer pays 1.8 percent into the Territory and 9 percent to the Fed eral Government.
 Industrial Number
 Each liable employer will be giv- en an industrial classification num- Der and the tax credited to his ac- count. The Commission will use the employees Old Age Benefit num- bers and keep an accurate record of each employees wage records
 By the time the benefits first be- come payable, which is January l, 1899, system of employment of- fices will have been established throughout the Territory to assist in jobs placement and benefit pay ment.
 When an individual becomes un- employed he is required to register with the employment office. The employment office will immediately endeavor to place the individual in another position. If it fails to dc so within two weeks, and the indi- vidual has met the requirements of the Social Security Commission, he will then be rendered a benefit check The amount of the check will be based entirely upon the work record of the individual and will be one-half of his former full-time weekly wage, with maximum weekly payment of 1500 for a per iod not to exceed sixteen weeks.
 Old Age Benefits
 Title VIII of the Federal Socia Security Act establishes a system oi old age benefits. This title mus not be confused with unemployment compensation as it is an entirely different setup and is in no way connected with unemployment com. pensation
 Title VIII imposes tax upon em- ployees as well as employers to tht amount of one percent for the cal. endar years 1887, 1888 and 1889 This tax will be graduated at one. half percent every three years un. til the total of three percent i reached. On December 31, 1948 when the total of 3 percent will hay' been reached, the employer will b. paying percent of his payroll anc the employee percent of his wage The money collected in this man lner will be credited to each em ployee upon whose wage the tax i | imposed The amount will accrue until the individual has reached tn age of 65 years, whereupon he vii receive a monthly old age beneefi check The amount of the checl