Montana labor news., 1939-12-21
UNEMPLOYMENT INSURANCE

EtAN u tAN eNobNsy
UNEMPLOYMENT INSURANCE
Q. Do the amendments to the So
cial Security Act make any extern
sive change in the federal unem-
ployment provisions?
A. No, although certain changes
are made with respect to the wage
base on which the federal tax is
levied and in coverage.
Q. What are the changes affect
ing taxes?
A, Taxes are now levied on
wages paid" as in Federal Old-Age
and Survivors Insurance, instead of
on wages payable; and the en-
ployer now pays taxes only on the
first $4,000 a year paid to an en-
ployee instead of on his total pay
roll.
@. Does this mean a saving to
employers?
A.. Yes. 1t is estimated that this
will save employers about $65, 00O,-
600 a year.
@. Is there any change in the &C.
equations covered by the unemploy-
ment insurance plan?
A. Employees of banks, building
and-loan associations, and members
of the Federal Home Loan Bank
System will now be brought under
state unemployment compensation
laws if the states wish to.
Q. What has been done about
services and occupations covered by
the Railroad Unemployment Insur-
ance law?
A. They are excluded from I'M
employment compensation under the
Social Security Act.
@. What is the status of insurance
agents?
A. Insurance agents exclusively
on a commission basis are now spe-
officially excluded.
@. Are excluded occupations now
the same for unemployment com
pensation and for old-age and sur
vivors' insurance?
A. Not precisely; but the amend
ments tend to make these provisions
of the two programs more nearly
parallel.
@. Do the amendments make any
changes affecting the administration
of unemployment compensation and
the other federal-state programs?
A. One significant change has
been made-that requiring state adj
ministrative agencies to set up a
merit system for their employees by
January /, 1910. Most states al
ready have begun to put such plans
in operation, and in all states the
administrative agencies have author
ity to set up such systems without
legislative action.
0AAAA &06A
Q. Have any important changes
been made in the provisions for aid
to the needy aged, the needy blind,
and dependent children?
A. The amendments increase the
amount of federal money available
to match state expenditures for all
three public-assistance programs.
@. How does this operate with re-
spect to old-age assistance?
A.. The maximum for federal
matching has been increased from
SIS to $40 a month for each recipi-
ent, beginning January l, 1910.
@. Then if a state puts up $40.
the federal government contributes
a like amount?
A. Yes; the recipient would have
an allowance of $40 from combined
federal-state funds.
Q. Must the state put up this
much?
A. No. The amount paid by the
federal government depends entire.
ly on state action. If the state pays
a needy old person less than this
maximum, the federal government
contributes half; if it should wish
to pay more, the amount in excess
of $40 would come from state funds
@. What about aid to the blind?
A. The maximum for federal con-
tributions has also been increased
to 500 a month for each recipient
under this program.
Q. How r state assistance pay
ments for aid to dependent children
to be matched?
A. The federal government viii
pay one-half-instead of one-thiro
as under the original plan-of the
states assistance payments under
this program.
Q. Was the maximum changed foI
aid to dependent children?
A. No. 1t remains the same-$1E
a month for the first dependent child
and $12 for each additional depend
ent child in the same home. Oh
course the state al pay more out
of its own funds if it wishes.
@. Under the provisions for sur
vivors' insurance benefits, children
of insured workers who die receive
benefits until 18 if they are regu.
larly in school. Does the same age
limit apply to aid to dependent
children?
A. Yes; before the act was amend
ed federal money could be used tc
aid dependenf children only up tc