Newspapers / The Fieldcrest Mill Whistle … / May 1, 1961, edition 1 / Page 5
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b Jobless Benefits To Cost Company Extra S70.000 A Year XI J..J I'Jitor's Note: The recently-enacted Feder- Hjjj^Porary Extended Unemployment Coiti- Law provides additional benefits to i|,„P'oyed persons who have exhausted their ! i»4 *'hder the existing law. In the follow- (.'"'ei'view, William B. Lucas, Company at- gives information that will be useful who now are or may later become for the extended benefits.) ■ Win you tell me, Mr. Lucas, what is background of this new law? law was enacted as a part of the ^titi-recession program which was ®^tlined in the President’s State of Union message earlier this year the purpose of temporarily ex- ®nding unemployment compensation t’syments to those unemployed work- who have exhausted their bene- under the existing laws. It was Signed into law on March 23, 1961. Just what does the TEUC law pro- 'Ide? law provides that after an un- ^'Uployed worker has exhausted his ®gular benefits under present State ''•i Federal laws, the Federal Gov- ^ftiirient will pay him additional for a period half as long as the 'Nation of his State benefits, but more than 13 weeks. In North '-a: paid retroactively and cannot begin sooner than the date on which a per son files at his local Emplojrment Commission office. Q. What about persons retired under the Fieldcrest Pension Plan? A. Former Fieldcrest employees who have retired under the Fieldcrest Pension Plan or Annuity Plan may receive the extended benefits if they meet the normal eligibility require ments of the State law. The amount of their benefits will be reduced by the amount of their Pension and An nuity Plan benefits, however. Q. How do you register for the extended benefits? A. A person must go to his local Em ployment Security Commission of fice in North Carolina, or Employ ment Commission office in Virginia, and register for these benefits in the same manner as was done when he registered for his regular unem ployment compensation benefits at the time he first became unemployed. - more than 13 weeKS. in iNorin „ -e rolina and Virginia, the full 13 ^ ^ eligible? are available to unemployed ersons. The amount of these tem Dor; th: ^rily extended benefits will be I® same amount as that paid by the Sf „ under its regular program, with ? exception that the amounts re- th, ^®ived under a private pension plan danced by an employer will be de- j^cted from these temporary bene- Social Security payments will h OCCUl j * be deducted: '''ii? that this arrangement become permanent? ^as not intended to be permanent if, time it was enacted into law March of 1961, but it was passed ^eet the unemployment problem >1 existed at the time it was ®ssed. is eligible to get the benefits? Unemployed person who has austed his regular unemployment A. The local State Employment Com mission office decides this under its rules for determining if a person is eligible for the regular unemploy ment benefits. I might point out here that the State Employment Security Commission offices are administer ing this program for the Federal Gov ernment and the Federal Govern ment is paying the State agencies with the money it collects from all employers, such as Fieldcrest. P^risation benefits since July 1, Hq ''^ill be eligible for this addi- Dj Unemployment compensation he continues to meet the 9t;(j ® eligibility requirements such as seeking employment, avail- for employment, etc. do the new benefits become On® hew benefits became effective tit, ^Pril 8. 1961 and persons en- Wai benefits may file at their «ligj ^ployment Security office. An Person may receive these ex- M benefits for the 13-week peri- (iU ®^*fining as of the date which he Company Pays Every employee at Fieldcrest is covered by unemployment insur ance which costs the employee nothing. The entire cost is borne by the Company. Read the feature on this page and, the next time you hear someone say, “I’m due un employment benefits because I paid for them,” you’ll know better! ‘Cs l-’an claim for such benefits. apply reiroactively for the **ded benefits? > Extended benefits will not be ^Y, MAY 1, 1961 Q. Would you please explain further how this program is financed? A. As you know, the Company pays an unemployment compensation tax, based on its payroll, to each state where it has employees and also to the Federal Government. The por tion that we will pay to the Federal Government for this year will be at the rate of four-tenths of one percent, but in order to pay for these ex tended benefits, the Federal Gov ernment has doubled its rate to eight-tenths of one percent of the Company’s payroll up to $3,000 per employee. The addition of another four-tenths of one percent tax on IHk WILX.IAM B. LUCAS . . . Explains Extended Benefits Law . . . Fieldcrest’s payroll will cost Field crest an additional $70,000 per year taxes for the years 1962 and 1963 when you take into account the fact that we have nearly 6,000 employees and the additional tax will be $12 per year per employee. Q. As a matter of information, just how much does unemployment insurance for its employees cost Fieldcrest each year? A. At the new rate, we’ll be paying the federal government $140,000 a year. The unemployment insurance taxes we paid to the separate states last year amounted to over $330,000. You can see that the total, state and fed eral, is close to a half-million dol lars. Q. It gets into big money, doesn’t it? A. It does. And don’t forget the Com pany pays the entire cost of unem ployment insurance. In addition, the Company pays half of the cost of So cial Security and the employee pays half. In 1960, the Company paid ap proximately $580,000 as its share of the Social Security taxes. So you’re talking about in excess of a million dollars a year which the Company pays in payroll taxes to provide un employment insurance and Social Se curity benefits for employees. Q. Would you have any comment on these costs? A. I’m glad you called them “costs.” These legally-required benefits as well as Fieldcrest’s other employee benefits are “extras” which employ ees receive in addition to their pay checks. To the Company, though, they represent additional costs of doing business and are possible only as the Company’s operations are profitable.
The Fieldcrest Mill Whistle (Spray, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
May 1, 1961, edition 1
5
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