The Wrangell sentinel., 1955-04-15
COMMISSION EXPLAINS
 NEW EMPLOYMENT SECURITY LAW


 SECURITY LAW
 | Following is a working eXplana- tion of the new Employment Secur- ity law of Alaska enacted by the Twenty-second Legislature, as ex- plained by the Employment Secur- ity Commission.
 The rate of payroll tax to be paid by employers will continue to be 2.7 per cent, but this rate will apply to the first $3,60O of wages paid to an employee during any calendar year instead of to the first $3,000 as under the previous law. This change in the law be- comes effective with respect to wages paid on or after January l, 1855.
 Another change is that employers are now required to deduct from | the wages of employees, up to the :, first $3,600 paid during any cal endar year, an amount equal to one-half of one per cent of said | fective retroactively to January 1, 1855.
 Checks in Mail Apr. 20 The Employment Security Com mission postponed the mailing to employers of employer contribu- tion reports and wage schedule forms until such time as the Leg ! islature had concluded it's efforts Law Due to the radical changes mentioned above, it is now estimat- ! ed that these report forms will be in the mail about April 20, and that employers will be given until May 20 to prepare their reports for I t h January February March 1855 calendar quarter. Complete instructions will be sent to each employer concerning the changes. It will be noted in the new re- port forms that information con corning how much each employee earned during each calendar quar- ter is now required. This is made necessary not only for the reason above mentioned that taxes are now payable on each employees wages up to the first $3,600 paid to him during any calendar year by any employer, but also benefit eligibility is now contingent. al mong other things, upon the amount which the employees earn ed in his calendar quarter if high est earnings
 How It Works
 Under the old law any employee who earned $500 or more during a calendar year was eligible to re ceive at least some unemployment insurance benefits, subject to the provisions of Section q, Chapter 99, SLA 1853 The new law requires that the individuals base period earnings must equal at least one and one-fourth times the amount he earned in his highest calendar quarter In other words, during the period from July 3, 1855 (the date when the benefit payments portion of the new law becomes effective) to June 30, 1856 the individuals base period will be the calendar year 1854. If the individual earned during the calendar quarter July August September 1854, total of $1,000, he would have had to earn at least $250 during the other nine months of 1854. This amount of earnings would entitle him to $17 per week for no more than 22 l weeks If he earned $360 in the months of July, August and Sep tember, he would have to earn at least $90 during the other nine months in order to be eligible for $10 per week for a period not to exceed twenty-six weeks for an a. mount not to exceed $1170.
 Under the old law dependents were defined to include wives and also, under certain conditions, par ents, older children and other near relatives, whereas, the new law limits dependents to unmarried children under IS years of age and unmarried children over Is years of age who because of infirmity are prevented from engaging in a gainful occupation and are princi- pally dependent upon the claimant for support. This change in de- pendents definition takes effect on and after July 8, 1855, as do the other provisions with reference to | benefit amounts.