The Waterbury Democrat., 1937-01-01
u. S. READY AS BOOKKEEPER
FOR rs MILLION EMPLOYEES
ON SOCIAL SECURITY ROLLS
Farmers Will Pay
/ Pct. Into Fund
After Today

ginning Of the new year vast So
ciai xeform-old age insurance for
some 26 million Of the country's
workers.
Cooperating In the plan will be
industrial and commercial employ
erS and their employees, individual
states, and the federal govern
!. nnent. The sweeping program, en-
! acted by the last congress, Is
I expected to insure the nations
wage earners against poverty in
| their old age.
First step In the program was
levying 2 per cent payroll tax, be-
ginning tomorrow, which employ
ers and employees will divide.
| Every employe will find 1 per cent
Of his salary deducted henceforth
! from his weekly pay check, while
employers will pay an additional ]
per cent Of their total payroll.
Funds to BE Invested
Tax experts estimate that this
| new levy will bring in approx
mately S247, 900, 900 this year. The
money will be kept in the federal
treasury as 1t accumulates, to be
handled by the secretary OF treas
ury. who Is directed to purchase
/ government securities with the ac-
cumulated fund, thus shifting the
huge government debt from the
hands Of private individuals and
bankers to the government itself.
Prime purpose Of the program
win be carried out through pay
ments Of monthly benefits ranging
i from $40 to $85 to workers who
+ have retired from their Jobs at the
age Of IS after contributing to the
fund.
Actual payments being Jan. l,
1912. Total benefits in that year
are expected to reach $4,000, 900,
increase to 1911 100000 In 1850
and reach the operating level of
\ s1,341. 100000 by 1875.
81 Payments Will Rise
Tax payments, however, will
also have increased to per cent
by the time the program becomes
operative in 1912, with employers
and employees each paying 3 per
ceat payroll tax instead of their
current per cent.
Thus, the next tax will have
three effects:
!. It will make possible nearly
universal retirement Of workers
re,.ching IS years of age through
tbs monthly benefit payments to
contributors.
2, 1t will make possible shifting
| of the governments public debt,
now totaling $4,000, 100000.
8. 1t will create huge fund OF
reserve cash which congress can
use in case of emergency.
Pension Program Starts
Inauguration of the old-age
pension program was the second
major point of the administrat tons
effort to create social security.
First was the unemployment COM
peasation plan, for which employ
ers will pay a per cent tax on
their 1886 total payrolls.
Under this program co-operat-
ing states will receive 80 per cent
of the money paid in the federal
treasury by employers within their
respective borders. The states then
will distribute the funds under
their own administration to UNI
employed workers eligible under
the federal program.
Workers in states which have
not qualified under the federal
program by setting UP an accept
able unemployment compensation
program of their own, however,
will be ineligible and will receive
no benefits.
Gigantic Setup Ready
While the old-age pension itself
actually starts with the new year,
the gigantic behind the-scenes ad-
iministrative task was begun sew
cral weeks ago when the social Sc
curity board began the task Of
indexing and classifying each Of
the nations 26,000,00O eligible
workers.
In this way the board will seek
10 kepe an accurate record of these
26,O0O,O10 lives employment,
where and how long; wages re-
ceived: and amount paid into the
governments security fund.
The stupendous job began on
Nov. 16 when the postoffice de-
partment distributed blanks to
3,500,000 employers subject to the
payroll tax, calling for information
on the type Of business conducted,
business addresses, and the num-
Der Of persons employed. Cards
were returned in five days and the
actual classification task was be-
gun.
Several Glasses Exempt
Next, on Nov. "a postmen deliv-
cred old age pension applications
to the 26,000,000 workers. These
blanks were distributed to all wage
earners except those specifically
exempted in the social security act
- seamen, agricultural workers.
domestic servants. railroad en-
ployes already under another gov
eminent pension system, federal
or state government employees and
members of STATS Of non-profit Or
CARNATIONS. These classes were ex-
cmpted at the request Of treasury
department officials, who asserted
1t would be an administrative i'm
possibility" TO collect taxes from
them or their employers
The worlds largest filing sys-
TEN. in the security boards Balti-
more Office, then was put into
operation and each worker was as
signed an account number and the
monumental task of keeping rec
ords on 26,000,0O0 lives was under
way.
OWL DEFENDS CHIMNEY
Cleveland UP).-When DR.. Henry
Litchtig heard eerie cries and howls
Issuing from the chimney Of his fire.