The Waterbury Democrat., 1937-07-08

AC00J bCOAA oSO eSN'ANAS AAA oAAS AbAAA M tablished by the Connecticut Un- employment Compensation act to meet the problems of future unem- ployment in the state, and contribu- tionS to the fund are pouring in at i the rate of almost $l,000,000 per month. If the present rate of col- lection continues, Connecticut will have approximately N$l5, 900, 900 avail able by January of next year when the first benefit payments will be made.
 To date, approximately 1000 em- ployers have contributed to the state fund, and 436,000 workers in the state are covered by the pro- visions of the act
 The Connecticut act is being ad- laninistered by the unemployment compensation division of the state labor department, which is now en- gagged in building up fund out of which eligible unemployed work CTS may after January 1 of next year, draw weekly benefits during at least part of the time they spend in finding new employment. This fund is being built up by contribu- tions from all employers with five of more workers in the state, ex- cept those engaged in agricultural labor, domestic service, maritime service, family employment, govern ment. state, or municipal employ ment, and employment in certain types of non-prof1t institutions.
 1.S P. c. This Year
 Under the Connecticut Act, all employers not engaged in an ex- empted industry, with five or more workers in their employ at the same time during any twenty weeks of the year are required to pay contribu- tions at the rate of 9-l0 of 1 per cent of their total payroll in l9S6, 1-e per cent of their total payroll in 1887, and 27 per cent of their payroll In 1888, 1889 and 1940. After 1940 the merit rating provision of the act becomes effective, and employers who have built up rela- lively large reserve because of sta- ble employment will qualify for re- duced rates of contribution.
 Employers in the state who are liable for taxation under title TX of the Social Security Act which deals witA unemployment compensation ana levies an excise tax on employ CTS of eight or more workers, may credit the amount they pay the state against their federal tax, which, for 1887, is payable to the Bureau of Intprnal Revenue next January. This means that such employers pay the sttae att he rate of IS per cent and pay the Bureau Of Internal Revenue this year 2 per cent minus Is per cent or 2-10 of l per cent.
 The contributions to the state are collected monthly, and are due on the 28th day of the succeeding zaonth, These contributions should be accompanied with a contribu- ton return form. Conn. UC-2B.
 Differs from Old Age Fax
 There Is no connection between these state contributions and the Federal Old Age Benefit Taxes of per cent on employers and 1 per cent on employees. The latter taxes are levied by title VIII of the So- cial Security Act and are collected monthly by the Bureau of Internal Revenue. The state receives none of this money, and the unemployment compensation payments to the state cannot be credited to the old age benefit tax.
 A point of some confusion to em- ployers subject to both the state tax and the Federal Old Age Benefit tax is the different definition of the term payroll" Under the federal old age tax, employers do not have to pay a tax on employees over 6G years old, and do not have to pay on wages in excess of $3,0ot per year. Under the state Unemploy- ment Compensation act, the total payroll must include the full amount received by each worker, and must include every worker, regardless oi age.
 The collection of contributions from some 1000 Connecticut employ CTS and the maintenance of records of the earnings of 436,000 employees naturally, creates a tremendous rec ord-keeping task. This has beer handled by modern accounting ma chinery so efficiently that, although only six months have elapsed since the Special Session of the General Assembly passed the Connecticut Unemployment Compensation Act last November, the necessary record system is already established and the collection of contributions is proceeding smoothly.
 Benefits to Be Paid
 The collection of contribution; and the keeping of records are only two of the tasks encountered in the administration of the Connecticut Unemployment Compensation Act An equally difficult task, and one oi more interest to the worker, is the payment of benefits, a phase of un- Employment compensation which under the Connecticut Act, begins next January.
 Tn 1888, under the Connecticut act, unemployed workers will be en- titled to draw benefits, when they become unemployed, if they meet certain simple requirements.
 These requirements are:
 1. The workers must have made a claim for benefits and must have registered for work with the near nst public employment office.
 g. The applicant must be physi- cally and mentally able to work, and must be available for work.
 3. The applicant must have worked for an employer subject tc the act for a minimum period oi Approximately twelve weeks, and
 {. He must have completed a Waiting period of two weeks.
 If the unemployed worker meets these requirements, he may draw benefits amounting to approximate. Iy 50 per cent of his usual weekly wage, up to maximum of SIS pei