_ ._ Z WISCONSIN STEEL COMPANY
XR *Mr. J. C. Ballard, Auditor DME October 26, 1937
D§M M%T Wisconsin Steel Company, Inc.
°Rwm“S Benham, Kentucky
SOCIAL SECURITY TAXES -
§.?EL1E§’,... 1937 EXTRA COMPENSATION
Dear Sir:
The total amount of 1937 Extra Compensation payable to
employees, whether left on deposit or taken in cash, must be
considered as October 1937 wages and as such it is subject to
Social Security taxes and Federal and State income taxes.
You have already been instructed as to the accounting
for 1937 Extra Compensation, and this letter will be confined
to instructions governing the reporting for Social Security
taxes in connection therewith.
In our letter of October 20, 1937 we requested and out-
lined special statements for reporting ”Extra Credits - 1936
Extra Compensation" for Social Security tax purposes. You will
also be required to prepare similar statements for 1937 Extra
Compensation.
You are already familiar with statements of this kind,
and instead of repeating instructions given in our letter of
October 20, 1937 mentioned above, we shall enumerate the changes
which will be necessary to adapt the models given in that letter
to meet the requirements for reporting 1937 Extra Compensation.
1. Change the heading of both statements to show that
they relate to 1937 Extra Compensation.
2. Change the word "credits” in the various deduction
items to read ”Amounts Payab1e."
3. Deduction No. 2, ”Credits to Pensioners" will be
omitted from both statements for 1937 Extra Compen-
sation. If a payment is made to a pensioner who
retired at age 65, his payment will of course be
excluded on the Federal Old Age Benefit statement
because of his having attained that age, but pay-
ment to such an employee is taxable under Unemploy-
ment Insurance laws, regardless of his age. Also,
payments made to pensioners who have not yet attained
age 65 at October 31, 1937 are taxable for both pur-
poses.