Montana labor news., 1937-03-25
ADDRESS OF Lewis
pENWELL OVER KGlR
Explains Difference Between
State and Federal Security
Laws.

During the time the recent Legis-
lature was in session, there was a
great deal of talk about Social Sc
curity laws passed by the Legisla-
ture with the result that there is
some question in the minds of the
public which has made it difficult
for them to differentiate between the
State law which will go into effect,
and the Federal law which has al
ready been in effect for some time.
The Collector of Internal Revenue is,
under the law, charged with the duty
of collecting the Federal Social Sc
curity taxes and the purpose of this
radio talk is to clarity a number of
matters which have come up in con-
nection with it but have no reference
whatever to the State law regarding
Social Security matters.
The Federal Social Security Act
embodies particularly two titles
which have application now and
which l propose to discuss this eve
ming. Title TX of the Act, relates
entirely to Unemployment Insurance
and is tax of l per cent on the
entire payroll of all employers hav-
ing eight or more persons in their
employ for at least some part of a
day in any 20 different weeks dur
ing the calendar year 1886. A per-
son qualifying as an employer in
this respect must file a return on
Form $40 which may be procured
from my office in Helena upon re-
quest. This may be an opportune
time to mention that the time for
filing this return and the payment
of the tax, has been extended to
April l, 1887. Also, at the option of
the taxpayer it may be paid in four
equal installments.
To repeat, the tax under Title TX
Unemployment insurance. is solely
tax on the employer and tax on
the entire payroll of all employers
employing eight or more persons
during the calendar year 1886, and
the tax is payable any time before
April 1, 1887. All employers who
would come under the Act are urged
to check their payrolls to ascertain
whether or not they come within
the Act as heretofore explained, and
if so, to make their returns to the
Revenue office in Helena before
April in order to avoid a penalty
for delinquency. If you are in doubt,
write to my office and we will try
to elucidate.
Title VIII of the Act relates en-
tirely to old age benefit payments
and is for the sole purpose of estab-
fishing in the United States Treasury
a special Old Age Reserve Account
from which to pay benefits to in
dividuals who have reached the age
of 65 and who have qualified under
the Act.
The tax is l per cent of the total
wages of the employe paid by the
employe and is matched by per
cent paid by the employer. This
applies to all employments except
agricultural and domestic labor and
other classes of labor specifically ex-
cepted by the Act. The term "wages"
means all remuneration for employ
ment not excepted by law, paid
either in cash or something other
than cash, for services performed in
any one year by an employe for any
one employer up to and including
$4,000 However, if an employed
person receives wages from more
than one employer, then each en-
ployer must withhold the tax on the
wages paid up to $4,000. In other
words, if an employe was employed
by Corporations "A' and "B" and
received from each $1,000 per an
mum, each of these corporations
would be obliged to withhold the
tax, based upon the limitation of
$4,000; of course this would apply
to any employer, not just to corpora
tions as in the example cited.
For reporting the tax due, Form
SS-1 has been prescribed, which re-
turn is composed of four copies. This
form is monthly return and re-
fleets the tax due from the employe,
as well as from the employer Every
subject to tax must file
with the Collector of Internal Reve-
nue. at Helena a return monthly on
Form SS-1, showing the total tax due
for the entire calendar month for
which the return is prepared and it
is due any time during the month
Immediately following the month in
which the tax was incurred For
instance, the February return is due
on or before the last day of this
month.
In concluding about Form SS-1. if