Evening star., 1950-02-05

WA
the current size of the systems
sac, ,468,0 900 reserve but also the
problem it poses.
While pertinent, the illustration
is not necessarily permanent. 1t
should be viewed against the back
ground of a heavy squirt in unem-
ployment insurance claims and
payments. They hit new highs in
recent weeks, with record claim
load of 6,282 during the week that
ended January %.
The magnitude of the reserve
or balance in the fund likewise
must be looked at in relation to
the rising cost of living and the
increase in average weekly wages
since 1888. 1t must be watched
along with the District systems
administrative cost that jumped
from 1881 500 in 1948 to $613,567
last year.
It must be studied in connection
with a pending increase in the
average experience rating tax
that determines the amount indi-
vidual employees must contribute
to the fund.
Furthermore, it must be kept
in mind as an important aspect
of an employment situation
peculiar to the National Capital.
The $4,000 employees covered by
the law here form less than half
of the Districts labor force of
approximately 522.888. About
255,588 of that total are in pri-
vate employment. Most of the
others are in Government service
not covered by the law.
Finally, the richness of the re-
serve may prompt Congress this
year to vote major changes af-
fecting contributions by Wash
ington employers and payments
as well as coverage provisions for
employees who lose jobss~
Employers Careless
Until the District Unemploy-
ment Compensation Board sends
its annual report to the Capitol
about March l it will not disclose
whatever recommendations it has
in mind.
Mr.. Wharton, meanwhile, be-
lieyes employers can do a lot to
benefit themselves and help his
Office to improve efficiency. He
feels that many unwitting1y or
carelessly fail to take full ad-
vantage of their rights under the
law.
He is not fooling when he urges
each of the $4,000 employers COW
cred by the act to give particular
attention to material he will mail
to them April /.
That material will announce the
rate they must pay on their pay
rolls during 1850. It will pro-
vide official forms for itemizing
wage, and tax information. 1t
will contain a sort of bank bal
ance" showing the individual en-
ployer how much he deposited
in contributions during the pre-
vious period. 1t also will list
amounts taken out of the re-
spective employers account and
paid to former employees who
joined the jobless ranks.
Don't throw the material
away" Mr.. Wharton pleads.
every year we have had to send
several hundred repeat letters to
employers who thought the in
formation and forms were just
routine and suitable only for the
wastebasket."
One way that employers can
assist themselves, Mr.. Wharton
suggests, is to submit a separa-
ton report within 48 hours after
an employe leaves. An employers
failure to do that generally leaves
the unemployment compensation
Office with no alternative except
to pay a jobless claim pretty much
on the say-so of the employe.
Experience Rating Timely =
"It is surprising how many en-
ployers neglect to comply with
that provision" he says. IF they
did it, we would be in a much
better position to make disquali-
f1cations where justified. 1t would
save not only time but money
The employer thereby could help
to improve his experience rating
that determines the tax he must
pay"
Some employers are lax in ar
ranging exit interviews" to learn,
among other things, why employees
leave. Many employers also could
shire more efficiently" If they
had careful, systematic accession
interviews" Mr.. Wharton thinks.
The experience rating pro-
cedure is especially timely now
because MIR. Wharton has an
nounced that the average rate will
be higher this year. The larger
number of jobless payments last
year has forced a boost in the
average rate.
That does not mean every en-
ployer must pay a bigger District
unemployment compensation tax
than he did in 1949. But many
of them will. The rate last year
averaged four-tenths of / per
cent OF the payrolls of Washing
ton employers. The increase to be
officially proclaimed April will
bring the average to six-tenths OF
] per cent.
Here is how the experience rat
tag system operates:
Each Washington employer of
asle or more employees covered by
the law has separate account"
In the unemployment compensa-
tion Office at 451 Pennsylvania
avenue NV,