The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1943-01-22
BY PETER EDISON


BY PETER EDISON
In the governments wage sta
oilization program. control over
all salaries above 5000 a wear
and salaries Of administrative.
executive and professional en-
ployes making less than $1,000
year comes under the Commits
sioner Of Internal Revenue in the
treasury department
II you are an employer and
want to grant increases 10 any Of
your salaried employees you'll
have 10 abide by ehe regulations
Of the new salary Sterilization
Unit in the Bureau of Internal
Revenue. Any applications you
want TO make to increase salaries
will have TO be submitted to one
of Is regional offices Of the SAL
airy Sterilization Unit now estab-
lished in the regional offices of
the Collector of Internal Revenue
covering the district in which you
live.
WHAT Is SALARY
The first thing to understand
about the Salary Sterilization
Unit regulations is what consti-
tutes your salary The defini-
ton 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
pensions may be considered sal
airy, though reasonable benefits
will be exempted.
Overtime pay is considered
salary increase unless the en-
ployer can prove it has been his
custom to pay overtime at fixed
rate.
FEES EXEMPTED
Retainer fees and the earnings
of professional men such as doc
tors, lawyers, architects and so
on are not considered salary and
are not subject to limitation as
long as the payment is on fee
basis. If the doctor or lawyer is
paid a flat salary, however, 1t
cannot be increased by the en-
ployer without first obtaining
government approval.
Payment of dividends, interest
on money in the bank and profits
from a business transaction or
operation are not considered sal
arv and are therefore unlimited
except as TO the limitations of
taxation.
Commissions paid to travelling
statesmen are considered salary.
Premiums paid by an employ
er toward a group insurance plan
covering all employees are not
considered salary.
Contributions of an employer
TO an employees trust fund or
profit-sl1aring plan are exempt
If not subject to income tax pay
ment.
Salaries are exempt from regu-
lation if the employer has eight
or less employers.
The purpose of the Salary Sta
bilization Units regulations is to
stabilize all salary payments at
the levels prevailing Sept. Is.
1912. Even if an employer has
a bona fide contract with an en-
ploye made prior to Oct. 3, 1912.
for salaries over $1,000 year
or prior to Oct. 81, 1912, for sal
aries under $1,000 a year, calling
for specified increases in salary
rates at specified times, those
contract provisions must be APP
proved by the Commissioner OF
internal Revenue before they can
be carried out.
BOOST Is POSSIBLE
In spite of all these restric-
tons. it is possible for an en-
ploye to get an increase in salary
to correct a gross inequality or
10 aid the war effort, though the
burden of justifying an increase
In salary rate is placed in every
MY