Milford chronicle., 1937-06-04
NOTES ON SOCIAL
SECURITY ACT

Expressing the opinion that hun
dreds of taxable employers in this
district still labored under the mis-
apprehension that they were not
subject to the taxing provisions Of
Title VIII of the Social Security Act
and were not obligated to file Treas
ury Form SS1, Collector of Internal
Revenue Willard F. Deputy today
called attention to that section of the
act which provides that every indi-
vidua" shall pay an income tax on
wages and that every employer"
shall pay an excise tax on his EN-
ployee's wages.
"Teo many employers are confus-
ing the provisions of Titles VIII and
TX and think that because they do
not employ as many as eight per-
sons they are exempt from paying
this tax" Mr.. Deputy said This is
not true. The Title VIII tax is due
from every taxable employer and
from his employee. 1t is due and
payable monthly. The employer de-
ducts one per cent of the employees
wages and adds another one per cent
as his own share of the tax"
Drastic penalties. ranging from 5
per cent to rs per cent of the tax
due, will be imposed on the employ
ers who willfully neglect to pay this
tax monthly, Collector Deputy warn
ed, pointing out that when an em-
ployer makes a deduction from the
employees taxable wages under the
provisions of Title VIII he becomes
the custodian of federal funds. The
law also makes the employer liable
for the employees tax on all wages
paid by him whether he collects it
from his employee or not.
Another point Mr.. Deputy stressed
was that there are no provisions un-
der Title VIII for state participation,
consequently no deductions are al
lowed. Both employer and employee
must pay their full and equal share
of the tax, which is based on the en-
ployee's wages. Some employers
have niade5the mistake OF sending in
their Treasury forms SS1 to cover a
two or three month period" the col
lector said. This is not correct. A
separate return must be made for
each month based on the wages paid
in that calendar month. The bureau
will not accept accumulated re-
turns"
Some employers, the Collector ex-
planned, are of the opinion that If
the employee has no Social Security
number they are not required to pay |
the tax assessed against both. This |
is not so. The employer must pay |
the full tax regardless Of the en-
ployee's failure to produce a num-
ber. All employers should obtain the
account number of each employee |
he be new or old addition
to the pay roll. In the event the
employee shows no disposition to get
a number, the employer at the time
he files his Treasury form SS1
should add to that return Treasury
form SS5 in behalf of his reluctant
employee.
Collector Deputy said much need
ess correspondence between the
.axpaying employer and his office
,ould be avoided If the employer
ook great care to sign that space in
orm SS1 denoting his title. Only an
,fficer or a member of the firm or
me with a power of attorney may
ign in that space. Too. many en-
,layers whose payments are over
en- dollars fail to obtain a notary's
ignature and seal on form SS1. u.s.
ng instead the unsworn signature OF
wo persons. This last method of at
esting is available only to those
those employee-employer tax is ten
ollars or less.
In the language of the act, those
Employers and employees who are
from the taxpaying pro-
isions of Title VIII are as follows:
Agricultural labor; domestic SER ,,
ice in a private home; casual labor
OF In the course of the employers
-ade or business; service performed
v an individual who has attained
ie age of sixty-five years; service
erformed as an officer or member
/ the crew of a vessel documented
nder the laws of the United States u
r of any foreign country; service g
srformed in the employ of the uni d
ID States Government or of any in
of the United States; y
'rvice performed In the employ OF z
state, political subdivision there e
I. or an instarumentality Of one or a
ore states or political subdivisions; q
rvlce performed in the employ of u
corporation. community chest,
nd or foundation. organized and l'
'erated exclusively for religious. p
aritable, scientific. literary or edu- >.
tional purposes. or for the pre- u
ntion Of cruelty to children or an 'el
als. no part Of the net earnings OF le
,ich inures to the benefit Of any c'
ivate shareholder or individual.
Announcement was made today by
OF Internal Revenue M
~ IT. Helyering of the release Of W
rms SS-2 and SS-2a which have =
en- prescribed for use by employ
J In making their Information re-
rms under Title VIII Of the Social -
curity Act. Copies of these forms \,
3 now being printed and will be no
de available in the near future at st