The Waterbury Democrat., 1943-01-08

$ ottlceS ot the SaI-
 ary Stabilizatior Unit now estab'
 Peter EdsOn lished in the reg ional offices of the Collector of In. ternal Revenue covering the dis trict in which you live.
 The first thing to understand about the Salary Stabilization Unit regulations is what constitutes youl salary" The definition includes all direct or indirect compensation computed on a weekly, monthly or annual basis, plus any bonuses gifts, loans, commissions, and fees
 The Commissioner of Internal Revenue, after investigation, may rule that certain payments such as rents or royalties are in fact salary payments.
 Companies that have stock pur- chase plans for their employees in which dividends pay for the stock must consider those dividends as salary payments.
 Benefits from insurance and pen sions may be considered salary, though reasonable benefits will be exempted.
 Overtime pay is considered sal- ary increase unless the employer can prove it has been his custom to pay overtime at fixed rate.
 RETAINERS,
 FEES EXEMPTED
 Retainer fees and the earnings of professional men such as doctors, lawyers, architects and so on are not considered salary and are not subject to limitation as long as the payment is on a fee basis. If the doctor or lawyer is paid a flat sal ary, however, it cannot be increased by the employer without first ob- taining government approval.
 Payment of dividends, interest on money in the bank and profits from a business transaction or operation are not considered salary and arc therefore unlimited except as to the limitations of taxation.
 Commissions paid to travelling salesmen are considered salary.
 Premiums paid by an employer toward group insurance plan cov- ering all employees are not consid- cred salary.
 Contributions of an employer to an employers trust fund or profit sharing plan are exempt if not sub ject to income tax payment.
 Salaries are exempt from regula- ton if the employer has eight or less employees.
 The purpose of the Salary Stabil- ization Units regulations is to sta- bilize all salary payments at the levels prevailing September IS, 1922. Even if an employer has a bona fide contract with an employe made prior to October 3, 1942. for salaries over $5,000 year or prior to Octo- Der 27, 1942, for salaries under $5,- 900 year, calling for specified in creases in salary rates at specified times, those contract provisions must be approved by the Commis- sioner of Internal Revenue before they can be carried out.
 EVEN so, A BOOST
 IS POSSIBLE
 In spite of all these restrictions, it is possible for an employe to get an increase in salary to correct a gross inequality or to aid the war effort, though the burden of justi- flying an increase in salary rate is placed in every instance upon the employer. At the regional offices of the Salary Stabilization Unit, forms are available for making an appli- cation to increase salaries, and these forms must be filled in and approved before increases are granted. The commissioner may, however, authorize that the in creases be granted as from the date on which application was first made.
 But for certain cases, individual increases or decreases in salary rates may be made by an employer without approval of the Salary Sta- bilization Unit following the pat tern set up by the War Labor Board for wage adjustments not requiring government approval.
 The six types of salary increase that may be made without approval are:
 1. Individual eclassifications or promotions which move an employe to a position of more responsibility calling for higher salary rate.
 2. Tn dividual merit increases within established salary rate ranges, determined by payroll rec- ords or fixed company policy.
 3. Operation of an established plan for salary increases based on length of service, such as regular annual increases.
 4. Raises for increased produc- tivity under incentive plans.
 5. Operation of a trainee system
 While all such increases may be made by employers without govern ment approval, employers. may put their salary increase policy in writ ing, and have that policy approved by the Commissioner of Internal Revenue before putting such raises into effect.
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