The frontiersman., 1955-06-23
Employment Insurance
Changes Explained

The rate OF pdyIOu LAX 10 De
Maid bv employers will continue to
he 81 percent, but this rate will
amply to the first $4,000 of wages
naid to an employee during any
calendar year instead of to the
first $4,000 as under the previous
law. This change in the law be-
comes effective with respect to
wages paid on or after January
], 1855.
Another change is that employ
ees are now required to deduct
from the wages of employees, up
10 the first So, 1000 paid during any
calendar year, an amount equal
to one-half of one percent of
said employees wages. This, too,
IS effective retroactively, to jan
uary !, 1855.
AS was announced last week,
the Employment Security Com
mission postponed the mailing to
employers of employer contribu-
ton reports and wage schedule
forms until such time as the
Legislature has concluded its eff
forts to amend the Employment
Security Law. Due to the radical
changes mentioned above, it is
now estimated 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 the January
February March 1855 calendar
quarter. Complete instructions
will be sent each employer con-
corning the changes.
1t will be noted in the new re
port forms that information
concerning how much each en-
ployee earned during each calen-
dar quarter 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 $500 paid to him during
any calendar year by any en-
ployer, but also benefit eligibil-
ity is now contingent, among
other things, upon the amount
which the employee earned in his
calendar quarter of highest earn
ings.
To explain further, under the
old law any employee who earn
ed $500 or more during a calen-
dar year was eligible to receive
at least some unemployment in
surance benefits, subject to the
visions of Sec. z, Chap. SO,
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 80, 1856 the
individuals base period will be
the calendar year 1854. If the in
dividual earned during the cal
endar quarter July-August-Sep-
TENDER 1854 a total of $1,000, he
would have had to earn at least
$3.50 during the other nine
months of 1854. This amount of
earnings would entitle him to-
SIT per week for no more than
% weeks. If he earned $3.50 IN
the months of July, August and
September, he would have to
earn at least 500 during the other
nine months in order to be elig-
ible for $40 per week for period
not to exceed Is weeks. If he
earned $4,000 or more during the
months Of July, August and Sep
TENDER, he would have to earn
at least $500 additional in the
other nine months of 1854 IN
order to qualify for $45 per week
for a period not to exceed 20
weeks for an amount not to
exceed $1170.
Under the old law dependents
were defined to include wives
and also, under certain condi-
tons, parents, older children and
other near relatives, whereas,
the new law limits dependents to
unmarried children under Is
years Of age and unmarried chill
dren over 18 years of age who be
cause of infirnity are prevented
from engaging in gainful occu-
patton and are principally de-
pendent upon the claimant for
support This change in depend
ents definition takes effect on
and after July 3, 1855, as do the
other provisions with reference