The Nolan County News (Sweetwater, Tex.), Vol. 13, No. 4, Ed. 1 Thursday, January 14, 1937 Page: 3 of 18
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Editor’s Note — Following
are questions and answers
prepared by R. B. Anderson,
chairman-director of the Tex-
as Unemployment Compensa-
tion Commission, which is an
interpretation in simplified
terms of the various provis-
ions of the recently-enacted
Texas Unemployment Com-
pensation Act. This the second
and final instalment.
duct the amount you paid
During the first five years of
the Act’s operation—1936, 1937,
1938, 1939, and 1940—each em-
ployer’s tax rate is set.
In 1936 it is nine-tenths of one
! per cent of the “wages payable’’
| by the employer. In 1937 it is one
' and eight-tenths of the payroll.
After 1940 the employer’s merit
I system of rating becomes effec-
tive. This will be explained later
in this series.
, . - ,. ,, . What Constitutes “Wages
It is understood of course that Payable?’’
the sub-contractor must be other- AiTrornnv on m a, i
wise eligible to pay contributions . QUESTION -0: In the pieced-
under the Act. aI,tlcle- 1 m,t^ ht> ¥«* 01 lha
term Wages payable in talking of
How Can An Employer Volunteer , the amount the employer must
To Come Under Law? ! pay. Just what does this term
QUESTION 18: “In my busi-l mean?”
ness, I employ only seven men. ANSWER: Under the Act, the
Therefore, 1 am not subject to the . term “wages” is meant to include
Unemployment Compensation Act.! all forms of payment for services.
However, I want my employees to i Ordinarily, wages is regarded m
have the benefits of the Act. How meaning cash money paid for serv-
do I go about voluntarily becom-jices; but the Act includes, in ad-
Scenes and Persons in the Current News
ii?g a contributor?’’
ANSWER: You must first file
What Is An Employer?
QUESTION 16: “What is
emPl(?oTi1?!^r> v ■ n , J an application with the Commis
ANSWER: Briefly, an employ-j sjon> This voluntary submission to
« Is any person or turn, who, | the ]aw is open not only to firma -------
during 193.J or after, has employ-, emp]0ying less than eight workers,j cash—as, for instance,
ed as many as eight persons tor at j but a|30 those who employ ex-1 room and board,
least one day a week for any 20 j eniptecl laborers such as agricul- j 8. When a worker customarily
weeks during the calendar year. tural workeis. j receives gifts or gratuities from
The “twenty weeks” provision is j when you become an employer persons otner than his limn hate
very strictly defined. Say tbat j within the meaning of the Act, employer, these gifts are consider-
your normal payro is seven pei-j must remain subject to its; ed a part f his ge, and consti-
sons, but occasionally you have to , provjgjons f0r at least two years,
hire another worker for a half day To sevel. your connection you must
at a time. If that worker is cm- f,]e another application with the
ployed for any part of a day ^ | Commission at least 30 days In-
different weeks throughout the, fore january 1 of the calendar
year, you become an employer and \ ,„ear during which you desire to
you must pay the tax on your en- ■ sever y0Ur connection with the
tire payroll. I Act.
If you, with seven workers, ac- you understand, of course, that
another business whmh^ had | your employees would benefit only
dition to cash payments, the fol-
1. All commissions and bonuses.
2. The cash value of all pay-
ments made in mediums other than
part ■- t ms v ge,
“wages payable” by his em-
The Nolan County Child Wel-
fare Board met at the office on
Jan. 12 with the following mem-
bers present: Tom Carlisle, chair-
man; Dr. Sam Loeb, Mis. C. A.
Rosebrough, Mrs. Med Swain and
L. J. Geer of the advisory hoard.
Mrs. S. O. Herring and Miss Helen
Springer also attended.
Miss Springer gave the financial
and population reports. During
December 67 boys and 45 girls, a
total of 112 children from 45
families, were under supervision.
Eight children from six families
were in foster homes, and two
were in institutions.
At a meeting which Miss Spring-
er attended in Austin, recently,
Mrs. Violet Greenhill, chief of the
State Division of Child Welfare,
gave a talk on the need for legis-
lation providing state aid to de-
pendent children and also for en-
larging the state department of
child wlfare. The law which allows
dependent girls from the ages of
seven to be sent to the State
School for Delinquents, where girls
17 and 18 are kept, should be
changed to exclude all dependents
and delinquents under 12 years.
The board agreed to write in-
dividually to representatives and
senators asking for this legislation.
A committee from the Young
Women’s League, consisting of
Mrs. Garland Robrts, Mrs. Frank
Davis and Mrs. Woodrow Sheridan
were with the board during a por-
tion of the time, to* discuss a case.
Plans wene made for the reports
to be given on child welfare at the
annual meeting of the Nolan
County Children’s Council on Jan.
25. Mrs. Norma Rankin of the
state department of child welfare
has been invited to be one of the
Everything for the office. Wat*
»on-Focht Co (adv.)
in which you
eight workers, and thereafter
band the newly-acquired business, | ejecpe(j p0 j)(? an employer under
leaving you with your normal pay- jaw. In other words, in get-
roll of seven, you still are an em- n^ their benefit payments, your
ployer. ...... , workers could not count for credit
If you, as an individual, own o a week of employment prior to
control several small stores, each ^jme y0U came under the law.
having one or two workers, and a „ , „
the total Humber of workers in all j what The Employer Pay,
these stores is more than eight,1 QUESTION 19: “As an employ-
then you are an employer. ; er, how much do I pay, and to
If your total payroll has less! whom do I pay?”
than eight workers, then you may I' ANSWER: The amount each
voluntarily come under the Act, j employer pays to the Unemploy-
tut you are not required to.
If you are an employer engaged
in one of the exempted occupa-
tions such as farming, you may
voluntarily come under the Act.
How Does the Law Affect
QUESTION 17: “I am in the
contracting business. On some jobs
I sub-let work. Is my payroll meas-
ured by the number of men work-
ing directly for me on the job, or
does it also include the workers on
ANSWER: If the sub-contractor
himself employs as many as eight
workers and therefore is under the
law himself, then he is responsible
for the contributions on his pay-
But if the sub-contractor does
not employ as many as eight work-
ers, then you as a contractor are
liable for the contribution on his
The value of any such gratuities
or payments made in mediums oth-
er than cash, will be determined by i
fixed rules of the Commission.
What Is The Merit System Of
QUESTION 21: “Just what is
meant by the merit system of rat-
ing for employers under the Tex-;
a.; Unemployment Compensation
ANSWER: The theory of the j
merit system of rating is that the I
employer with a good labor rec- i
ord-—one whose employment is
stabilized—-should be rewarded,1
and the employer with a bad ret-
old should lie penalized.
So far as contributions are con- j
cerned, the merit system will go'
into effect after December 31, j
1940; will affect the tax on pay-
rolls during 1941 and succeeding (
1—Dr. Frcderico Laredo Bru being sworn in as president of Cuba, following the ousting of President
Miguel Gomez. 2—Leon Trotzky, former Soviet leader who has been given an exile haven in Mexico. 3—Chi-
nese National army that threatened civil war before the release of kidnaped Marshal Chiang Kai-shek.
against you are not more than the la wfor the calendar years
$330 nor less than $80. 1937 and 1938, but you do not
$10,000—average annual payroll, wish to be under the law in 1939
1,080—contributions from 1936
-benefits paid out from
1936 to 1941.
750—excess of contributions
750—seven and one-half per
cent of your average an-
insufficient to meet the benefits'
due under the law. What will the
Commission do then?”
ANSWER: The law recommends
that a reserve fund he built up to
pay benefits in future years. This
reserve fund is to be built up “in
accordance with accepted actuar-
. „ . • , .... — r-., ..... ten per cent of your
ment Compensation r und is <\5'_ I rolls during 1941 and succeeding average annual payroll,
termined by his payroll, and on the , years 1 2. The second merit rating is for
basis of a fixed tax rate. j £»ut merj^ system is actually all employers whose excess of con-
C.om-1 in effec*t today. The Commission tributions over benefits is more
then you must file your applica-
tion for release not later than
Dec. 1, 1938.
How Employers Will Come Under
The Law In The Future
QUESTION 24: “Suppose I , , inciples on the ba81s of sta.
start a business in the future and j J >. employment business
m f <■»">* 1 bec°ma employer other revevant far-
under the terms of the law; or my . „ J ^
present business increases to that Qne of the Commigsion>s duties
total benefits paid out i Siatus' I become an em wjjj be to ma]ie an annual report
__t0tal btnef,U Pal“ ° Ployer subject to the tax, and what tQ the G or< and an important
1,000—excess of contributions! '* ANSWER: It Ls the duty of each af,this reP°rt wl11 be a Onan-
over benefits. I firm employing eight or more peo- ^“judgment of the Com-
“.‘Sr." S'sTt.nS1 .<*.
In the first report to the
mission, you must determine ( wjjj beep a separate account for than 10 per cent. These employers
whether you were an employer! eacb elnpl0yer, starting with that get a tax rate of nine-tenths of
during 1935 and 1J36. Ifyou were emp]oyel,s first tax payments, one per cent on their payr oll.
that is. account will contain two 3. The third rating under the
items: 1. The total of his con- merit system is a demerit rating,
tributions or taxes, and 2. The 'Those whose benefits paid out ex-
total compensation or benefits paid ceed the total of their contribu-
out to those who had been employ- tions must pay a tax rate of 3.6
you were an
35 and 1936. ..
an employer during 1935—that is,
during the year you employed
eight or more people in 20 or more
weeks—then you must report.
You have to pay the tax only on
the 1936 payroll. But if you were|gd b bjm—that js those benefits per cent unless they can show
« ,,... ^ 1...... a. m lO4/!. nn/1 irmui mr 1 * . .. , . ,• * ■ , ,»•
an employer in 1935 and were not
in 1936, then you must report this
fact to the Commission, along with
an application for the termination
of your “employer” classification.
The tax payments will be made
direct to the Texas Unemploy-, jowel. bax rate; or, if his record is
ment Compensation Commission,1
Austin, on tax return forms sup-
plied by the Commission. ,
State contributions or taxes will j
payroll. However, any contribution; be collected before you pay your j ompioyees 0f
that you pay on the sub-contrac- Federal tax; and from the assess-
or's workers may be recovered by, ment made against you by the
you from the sub contractor. ! Federal government, you may de-
BANKS OFFICIAL STATEMENT OF FINANCIAL CONDITION
of the Texas Bank & Trust Co., at Sweetwater, State of Texas, at the
close of business on the 31st day of December, 1936, published in
The Nolan County News, a newspaper printed and published at
Sweetwater, State of Texas, on the 14th day of January, 1937.
Loans and discounts, on personal or collateral security $312,675.90
Loans secured by real estate------------------------ 43,691.52
Overdrafts __________________________________________ 32,622.48 , ployer, pay under the merit system
Securities of U. S., any State or political subdivision | be determined.
directly chargeable to his particu- some unusual reason such as fire,
lar account. act of God, etc., for their high un-
Beginning with payments due in employment record.
January, 1941, it will be possible 4. For all employers whose ree-
fer an employer to have a record ords are not good enough to en-
which will enable him to pay a title them to a merit rating, and
whose records are not bad enough
to place them in the demerit class,
| the average. i the rate from 1940 on will be 2.7
It must be made plain that the j per cent on thier payroll,
merit system does not mean that;
I bad, his tax rate will be more than
certain firm will I How An Employer Ceases To Be
draw benefits from the contribu-j Subject To The Law
tions made only by that firm. All! QUESTION 23: “I am an em-
the money collected will go into j ployer whose payroll has dropped
one big fund, and all employees in ' below the level of eight employees,
the state share jointly in that j j therefore desire to terminate my
fund. ! status as an employer. What shall
The merit system is solely a [ do?”
system of bookkeeping. The rates; ANSWER:
under the merit system will be ex- previously, if _ . .
plained in the next article. 1 many as eight people in 1935, but
How Much Does An Employer Pay ]ess than eight in 1936, you are
Under The Merit System? I still an employer in the eyes of the
QUESTION 22: “How will the law and must file a report, al-
amount of tax that I, as an em- though contributions are due only
on 1936 payrolls.
Before Jan. 5, 1937, you must
should be changed, then such
changes W’ill be recommended both;
to the Governor and to the Legis- j
In any event, should the fund
ever reach the point y/here it
cannot pay the claims against it,1
the State will be liable. The law ;
specifically provides that “bene-1
fits shall be deemed to be due and
payable only ... to the extent that!
moneys are available therefor.
to the Commission and become
subject to the law.
If you reach the status of em-
ployer during 1937, then you will
pay the rate set down for that
year—one and eight-tenths per
cent of the wages payable by you.
If you reach that status after
1937, you will pay the rate of two
and seven-tenths per cent.
You will notice that firms now
classified as employers must pay __
the two and seven-tenths per cent
tax for three years—1938, 19.19,' National park experts have in-
and 1940—before they are .subject formed the Texas Planning Board
to the merit system of rating. To bbab bbe proposed Big Bend Na-
make this policy uniform, you will tienal Park is the most interesting
have to pay the rate of two and ,.e)fjon jn the United States.
seven-tenths per cent for three ---------------- —
years before the merit system rat-
ing can apply to you.
For example, if you become an
employer in 1941, the year when
the merit system goes into effect,
you will still have to pay the rate
of two and seven-tenths per cent
for three years before you can get
a merit rating.
Your employees will start build-
ing up their credits from the first
day of the calendar year during
R. & R. TEXAS
“West Texas' Finest”
Fri. & Sat. |
I EO CARRILLO
“THE GAY DESPERADO”
Sun. & Mon.
Tues. & Wed.
“WANTED: JANE TURNER”
R. & R. RITZ
Fri. & Sat.
BOB STEEL In
“THE GUN RANGER"
1. As we stated wbjcb you become an employer. In
you . employed . as ^be aboye example, their credits
will start on January 1, 1941.
Suppose The Tax Is Not High
Enough To Pay All Benefits?
QUESTION 25: “Suppose that
after a year or two of experience
with the rates established in the
Texas Unemployment Compensa-
107 W. Third
Dr. P. T. Quast
Difficult Cases Solicited
Glasses Fitted and Repaired
Prices ReasotiabSe -
WORTHY OF ATTENTION
thereof ___A________________ ...__________.... 483,597.29 ANSWER: When the Commis- file a written application with the tion Act ttu.y are shown to be
Other bonds and stocks owned
Banking House -----------------------------------
Furniture and Fixtures-----------------------------
Real Estate owned, other than banking house-----------
Cash and due from approved reserve agents----------
Due from other bank? and bankers, subject to cheek on
Stock and/or assessment Federal Deposit Insurance Corp. .
Other Resources (Itemize) Due Federal Land Bank __
5,000.00 ! si°u sets you*' tax rate f°r 1941 Commission, asking that you
80.000.00 | and after, your personal account relieved of your status as an em-
13,500.00 will be consulted as to 1. the total; ployer. This application must give
7o'o84 62 amount you have conliibuted to a|[ the facts on your employment
645|311.43 j the fund, and 2. the total amount during 1936, so that the Commis-
! nf hpnpflt.fi <*h
of benefits charged against those sj0n can determine that there
6,876.86 I contributions. j were no 20 different days in as
572 25' With these two totals as a base, | niaiiy weeks in which you employ-
1 ,t>89ly8 i an exact mathematical formula as many as eight workers.
*_ ’ has been set down in the law for j Many employers do not under-
$1 695 622.33 | the working out of the rate. It stand that they must file a return
’ ’ can best be demonstrated by tak- j even though they are not now em-
ing a hypothetical case. j ploying as many as eight people,
Suppose your average annual and have not done so since 1935.
j payroll for five years—1936-1940 2. Hereafter, to be exempted
_ . , *250 000 00 tax rates set down in the law for fr0m the provisions of the law,
Total Capital Structure----------...~-.--------.--l250,00O;OU l _wag $10f000 # year. At the fi ed you must file your application for
17|773.56 those years, your total conti u- exemption before the fifth day of
Income Debentures sold---------- 100,-000.00
Due to banks and hankers, subject to check
1308 West Broadway
We Appreciate Your Business
Satisfactory Work Guaranteed
E. N. Henson
Individual Deposits subject to check, including time de-
posits due in 30 days —.----------------------1,402,456.63
Time Certificates of Deposit------------------------ 14,017.25
Cashier’s Checks Outstanding ---------------------- 111.25
Other Liabilities Due Federal Land Bank------------- 1,689.98
STATE OF TEXAS
COUNTY OF NOLAN , T XT . ,
We, G. A. Swaim, as President, and J. N. Dulaney, as Cashier of
said bank, each of us, do solemnly swear that the above statement is
true to the best of our knowledge and belief.
G. A. SWAIM, President,
R. A. Ragland,
(Seal) J. D. Dulaney,
T. L. Hughes,
J. N. DULANEY, Cashier.
Subscribed and sworn to before
be this 7th day of Jan. A. D. 1937.
W. ,E. MORTON,
Notary Public, Nolan County, Tex.
tions by 1941 would be $1,080. ! January after the calendar year
Now subtract the total amount in which your status as an employ-1
of benefits charged against your er dropped below the standard pre- j
account from the total of your 1 SCribed by law.
contributions. The law says that if; For example, if during 1937 you !
the amount you paid in exceeds J djd not employ eight people on 20 j
the amount paid out to your em- j days in different weeks, you must;
ployees by a sum equal to 7 1-2 to file an application for exemption
10 per cent of your average an-' from the 1937 tax not later than meals . . . and suffer severe dis-
nual payroll, then you will be jan. 1938. ' comfort at certain times, ... try
taxed at a rate of one and eight-j 3. The above rules do not apply ( Carduil
tenths per cent on your payroll. | on one case—where the employer
Take the above figures and ap- j voluntarily comes under the law.;
ply this formula: I To be released from the terms of
T. With your total contributions; the law, this employer must file
$1,080 and your average annual hjs application at least 30 days
payroll $10,000, you could qualify prior to Jan. 1, of the year in,
for the one and eight-tenths per j which he wishes to be exempted, j
cent rate if the benefits charged j For example, if you come under
If you seem to have lost some of
your strength you had for your
favorite activities, or for your house-
work . . . and care less about your
Thousands and thousands of
women say it has helped them.
By increasing the appetite, im-
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to get mere nourishment. As strength
returns, unnecessary functional
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seem to go away.
Ira our modern plant
we are equipped to pro-
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PRINTING THAT WILL SECURE ATTENTION
Consistent with our desire to supply the best materials, we
accordingly stock and suggest ATLANTIC BOND—a nationally
accepted quality paper—the paper (or your letterheads, state-
ments, invoices, billheads and salesbooln-
THE WATSON-FOCHT COMPANY
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Green, Charles. The Nolan County News (Sweetwater, Tex.), Vol. 13, No. 4, Ed. 1 Thursday, January 14, 1937, newspaper, January 14, 1937; Sweetwater, Texas. (https://texashistory.unt.edu/ark:/67531/metapth561076/m1/3/: accessed May 25, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Sweetwater/Nolan County City-County Library.