The Kusko times., 1937-04-09
TELLS WORKINGS
 OF THE FEDERAL
 SECURITY LAW
fContinued from last week.

(Continued from last week.
 QUESTION: Why is there any need for old age benefits, since pro vision is already made in the old age assistance features oE the Social Security Act for Federal payments to keen the needy aged from star vation9
 ANSWER: There are provisions n the act which provide that a state with 9 plan for granting IlG51esal aid h the needy aged. which Is aP- proved by the Social Security Board v-iu receive from the Federal gov erauent an amount ecCa1 t0 approx 5raate!v one-half of the total ex- tended bv the state. But 9 grant from public funds available only ea proof of actual need has vastly different effect upon the morale eI an individual than does an zncasle base5 on pas- employment &15 zs uaid irrss oectiv= of actual nes.1. AS ot,- country has been -Ez-stElz-- ized. iL has been Increasingly clIIl- r-lIt for the wage esrner ta proEsae any means Of livelihood for the wears when he can TO longer work. The Federal 0ld-age benefits system Kiu build 9 retirement income which will compensate for thIs lack n 5-r industrial organization.
 QUESTION: What taxes are provided to pay for old-age re15re-- nent benefits? Who pays them
 ANSWER: Employers and ena- ulovees contribute egualy. Dar4ng 1887. 1888, and 1889 1he ta1 rate will be one per cent. For the next three years it will be one and one half per cent. from 1943 1o ls45 zn- elusive, two per cent, for the next three years two and one-hah per cent and after December 3l. I9ze the tax rate will be three per cent !
 Question: Are taxes paid to the Soc al Security Board
 ANSWER: No. The Bureau of Internal Revenue of the Treasury Depar1Taer11 will handle all tax col lec-iors under the Security Act.
 QUESTION How may an indl- viGual tell just how much he vii receive in monthly benefits after he reaches 65?
 Answer: To determine the exact launr gf the monthly benefit would require exact knowledge Of what future wages would be. The formula used in determining benefits is as folows: 0ne-haE per cent Of the first 8, 1000 of wages, one-tEel1th of one per cent of the next S42,5ott- and one-rSventy-fourtn of one per cent of all over sz5,0O0. Thus, if John Jones iS now % years Of age and works a. S1S00 year until he IS s. his total wages have been SS1, ,3G0 On Ihe first 5000, he would receive Q monthly benefit of SI5: on the next Sz2,000 the benefit amour. would De S35; or the re- maining S36, ,000, the amount would be S15 Thus his total monthly ben eft VII be S55.
 QUESTION: If Tom Smith ls now 50 years old and receives Sl00 a month until he is 65, what will his retirement benefit be? How much will h= have raid IT taxes:
 ANSWER: His monthly benefit vii be S27-50, or S330 2 year. His personal tax for such benefits vii have been S560.
 QUESTION: How may further information about this feature CT s5tner features Of ths Social Security Act be 0bIained2
 ANSWER: By communicating with Hugh I. Wade. in charge of rhe Alaska OEce Of the Social Security Board al Juneau.
 QUESTION: Does the Social Security Act inaugurate a national ,sys1em Of unemployment eompen- .ss-ion?
 ANSWER: No. there is some confusion on this point. The at simply encourages the states and territories t0 pass unemployment compensation laws by relieving them