The Waterbury Democrat., 1939-09-29
Unemployment Compensation


@. Do the amendments to the
Social Security Act make any extern
siye change in the Federal unem-
ployment compensation provisions?
A. No, although certain changes
are made with respect to the wage
base on which the Federal tax Is
lOvied and in coverage.
@. What are the changes affect
Ing taxes?
A. Taxes are now levied on
wages paid" as in old-age and sur
vivors' insurance, instead of on
''wages payable; and the employer
now pays taxes only on the first
5000 year paid to an employe in
stead of on his total payroll.
@. Does this mean a saving to
employers?
A. Yes. It is estimated that this
will save employers about $65,000,-
900 q year.
@. Is there any change in the
occupations covered by the unem-
ployment 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.
@. What has been done about
services and occupations covered by
the railroad unemployment msur-
ance law?
A. They are excluded from un-
employment compensation under
the Social Security act.
@. What Is the status Of insur-
ance agents?
A. Insurance agents exclusively
on D 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 those provisions
of the two programs more nearly
parallel.
@. Do the amendments make
any changes affecting the admins
tration of unemployment compensa-
ton and the other Federal-State
programs?
A. One significant change has
been nade-that requiring State adj
ministrative agencies to set up a
merit system for their employees by
January /, 1910. Most States already
have begun to put such plans in OPP
Grafton, and in all states and adj
mipistrative agencies have author
ity to set up such systems without
legislative action.
Public Assistance
@. 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
respect to old-age assistance?
A. The maximum for Federal
matching has been increased from
SIS to $40 month for each recip-
lent, beginning January /, 1910.
@. Then If a State puts up $40,
the Federal Government contributes
q like amount?
A. Yes; the recipient would have
an allowance Of $40 from combined
Federal-State funds.
@. Must the State put up this
much? 49,. ....
A. No. The amount paid by the
Federal Government depends en-
tirely on State action. If the State |
pays needy old person less than /
this maximum, the Federal Gov |
eminent contributes half: If 1t
should wish to pay more, the
amount In excess Of $40 would come
rom State funds.
Q. What about aid to the blind? |
A. The maximum for Federal
has also been In
:reased TO $40 a month for each re- |
;ipient under this program.
@. How are State assistance pay |
nents for all to dependent children |
o be matched?
A. The Federal Government win |
Jay one-half--instesd of one-third
IS under the original plan--of the
states assistance payments under
his program.
Q. Was the maximum changed
or aid to dependent children7
a. No. It remains the same el3 u
- ~ : 81 ~ " & q