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1935 Social Security Act
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FEDERAL TAX UPON EMPLOYERS OF EIGHT OR MORE EMPLOYEES (TITLE IX)
COVERAGE OF FEDERAL TAX (Sec. 907)
Employers of eight or more individuals employed on each of some 20
days in year, each day being in a different calendar week, in employments
performed within the United States, except the following employments:
1. Agricultural labor;
2. Domestic service in a private home;
3. Officer or member of the crew of a vessel on the navigable waters
of the United States;
4. Individual in employ of son, daughter, or spouse; child under 21
years in employ of parent;
5. Public employees--Federal, State, and local;
6. Employees of nonprofit institutions operated exclusively for religious,
charitable, scientific, literary, or educational purposes, or for
the prevention of cruelty to children or animals.
RATE OF TAX ON EMPLOYERS (Sec. 901):
One percent of wages paid in 1936; 2 percent in 1937; 3 percent thereafter.
CREDIT ALLOWED FOR PAYMENTS UNDER STATE UNEMPLOYMENT COMPENSATION
LAW:
1. Not to exceed 90 percent of Federal tax (sec. 902);
2. After 1937 additional credit is also allowable to any employer
who because of favorable employment experience or adequate reserves
is permitted by the State law to reduce his payments, subject to the
following conditions (sec. 910):
(a) If the employer contributes to a State pooled fund, the lower
rate is based upon not less than three years' compensation experience;
(b) If the employer contributes to a guaranteed employment account,
the lower rate is permitted only if the guaranty was fulfilled during
the preceding year and the account amounts to not less than 7% percent
of total wages paid during the preceding calendar year;
(c) If the employer contributes to a separate reserve account, the
lower rate is permitted only if (1) compensation has been payable
from the account throughout the preceding calendar year, (2) the account
amounts to not less than five times the largest amount of compensation
paid during any one of the three preceding calendar years, and (3)
such account amounts to 7.5 percent of the wages paid during the preceding
year.
REQUIRED PROVISIONS OF STATE UNEMPLOYMENT COMPENSATION LAW FOR
ALLOWANCE OF CREDIT (Sec. 903a):
1. All compensation to be paid through public employment offices in
the State or such other agencies as the Board may approve;
2. No compensation to be payable until after 2 years after contributions
first required;
3. State unemployment fund to be deposited with the Unemployment Trust
Fund of the United States Treasury;
4. Money withdrawn from the Unemployment Trust Fund to be used solely
for unemployment compensation, exclusive of administrative expenses;
5. Compensation not to be denied any eligible individual for refusal
to accept work if (a) the position is vacant due directly to a strike,
lockout, or labor dispute, (b) the wages, hours, or conditions of
work are substantially less favorable to the individual than those
prevailing in the locality, or (c) if the individual would be required
to join a company union or to resign fromor refrain from joining a
bona fide labor organization;
6. State must retain the right to repeal or amend its law.
REVOCATION OF APPROVAL OF STATE LAW (Sec. 903b):
The Social Security Board may, at end of any year, after reasonable
notice and opportunity for hearing, refuse to certifyState whose law
has been previously approved in case the State law has been changed
so that it no longer contains the above conditions, or if the State
has failed to comply substantially with these conditions. If at any
time the Board has reason to believe a State law may not be certified
it shall promptly notify the Governor.
UNEMPLOYMENT TRUST FUND (Sec. 904):
All moneys received in the State unemployment fund must be deposited
in the Unemployment Trust Fund maintained by the United States Treasury,
subject to requisition of the State. These funds are invested by the
Treasury and bear interest at the average rate paid by the United
States upon all interest-bearing obligations. A separate account is
maintained for each State.
INTERSTATE COMMERCE (Sec. 906):
No person required by State law to make payments to an unemployment
compensation fund shall be relieved on the ground that he is engaged
in interstate commerce, or that the State law does not distinguish
between employees engaged ininterstate and intrastate commerce. |
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