Henderson daily dispatch., 1942-06-19

it is now possible since the commits
SION has collected in contributions
and interest during five and a half
years of operation some S62, 70O, 900,
from which S22. 400, 900 has been
drawn for payments to unemployed
workers. This leaves a balance on
hand in the fund of about $40, Doc
600 as a reserve which it is hoped
Will be adequate to meet any serious
depression and widespread unem-
ploy that may develop after the war.
OF course, even with reduced taxes
under experience rating, this reserve
Will continue to grow as long as en-
plOyment remains at its present high
levels.
Heretofore there has been only
one period, IN the beginning of 1888
when payments going out were great
er than funds coming in at the stand
ard rate OF 2.7 per Cent of employ
ers' pay rolls. To-day the commission
is paying benefits to only about 5000
workers Of the 75O, 900 who are in
sured in this state. While this is the
lowest numLcr since the Unemploy-
ment Compensation Commission be-
gan to functlon-the highest was
around 1875, 900 in March 1881
must be remembered that the coun-
irys economic prosperity has been
on the upgrade for the last few wears
and it is the commissions job to lay
away and preserve funds in times Of
good business cgainst future needs,
the extent Of which can only be
guessed.
The rewards OF reduced tax rates
will be granted TO employers whose
records tor three years past show
a reasonable degree Of Sterilization.
If an employer has "separated' from
many Of his workers he is likely to
find himself still subject to a pay
roll tax at the standard rate of 2.7
per cent, although a little reform
in employment policy making for
steadier work in his plant might
win for him a tax reduction d year
or 50 later IN.
From the commissions point Of
View, the operation Of the experience
rating system for employers is a very
complicated and technical affair. II
involves establishing and maintain
ing individual Preserve accounts for
each of the ten thousand North Caro-
lima employers whose workers are
insured against loss of their Jobs
To each account is credited a de-
signated proportion of the contribu-
tons paid, and from it are debited
insurance benefits as paid to form
er employees.
The difference between cumula-
tive credit and cumulative benefits
charged is called the preserve bal
ance'. To be considered at all tor
a reduced rate, an employers re-
serve as of July | must be at least
equal to: Cd Eve times the largest
amount of benefits charged in any
one of the three preceding years;
and CD Two and one-half per cent
of the totll wages paid by the en-
ployer in the three preceding years.
If the reserve balance passes these
tests, it is divided by the total pay
roll for the three preceding years,
and the resulting percentage is re-
ferred to a table in the unemploy-
ment compensation law listing the
reduced rates.
With the idea of raising his re-
serve balance to a point where it
viii meet the tests for a reduced rate,
an employer may anticipate the
statu of his account and make a
voluntary contribution to it prior
to the July l deadline, on special
forms.
1t has been expected that some
employer accounts may become ex-
hausted by insurance payments. To
meet this situation and stiu have
funds to pay unemploymed work
ers the insurance they have earned, |
the commission also maintains a
partially pooled" account, To this
has been allOcated all moneys not