ES Tax FAQs
Rate questions
Why did my rate go up? Are you sure you calculated it correctly?
Good question. Rates are calculated based on the formulas defined in AS 23.20.280 - AS 23.20.310>. The actual calculation is performed by DOLWD's Research and Analysis Section. They have a very good explanation of the rating process available on their site. If you are still unsure why your rate has risen, contact your nearest Employment Security Tax representative.
I had to fire an employee. How will that affect my rates?
An employee drawing benefits does not affect your Employment Security Tax rate directly. Rates are not based on benefits charged to a specific employer (commonly called a charge-back system). Instead Alaska uses a quarterly decline system. The best explanation of the rating process we know about is maintained the Department of Labor's Research and Analysis (R&A) section: UI Tax Cookbook
If the R&A pages do not answer all your questions about rates, then please contact us directly.
My new employee already paid in the maximum UI contribution with her previous employer this year. Why do I have to pay for her since you already have that money?
The only real answer, and we know it's not a very good one, is because the law says that every employer is required to pay unemployment insurance contributions on each and every employee they have. Employees that work for two or more employers in a calendar year and pay more than the required contributions can apply for a refund of those excess contributions.
If you or your employees would like to know more about this refund program please contact your nearest ES Tax representative.
