Unemployment Insurance Law Summaries
Alaska, Unemployment Insurance Law Summaries
Alaska's unemployment insurance law is located in the Alaska Statutes, Title 23, Chapter 20 (for full text, see Unemployment Insurance Reports UI-AK ¶4001 et seq. ); and in the Regulations under the Alaska Employment Security Act, AAC 85.010 to AAC 85.510.
DEFINITIONS
“Employer” means one who employs one or more persons for some portion of a day. Generally, an employer who is subject to the federal law is subject to the Alaska law.
“Employment” means service performed by an individual for wages or by an officer of a corporation, including service in interstate commerce; service on an American vessel if the operating office from which such service is supervised is within Alaska; and service subject to the federal unemployment tax.
Service also constitutes “employment” irrespective of whether the common-law relationship of master and servant exists unless and until it is shown that the worker is:
free from control or direction; and
performing such services outside usual course of employer's business or outside all places of employer's business; and
customarily engaged in independently established trade, occupation, profession or business.
Services by certain agent-drivers or commission drivers and traveling or city salespersons are covered.
“Wages:” All remuneration for service, including commissions, bonuses, back pay awards, cash value of remuneration in any medium other than cash, and tips to extent reported to employer. When an employer has filed for bankruptcy, unpaid wages earned for services performed are considered wages for the quarter in which they were earned. For exceptions from wages, see below.
COVERAGE
Generally, service that is subject to the FUTA is automatically subject to the Alaska law. Employment does not include the following:
Agricultural and domestic employers.- Agricultural labor is covered if it is performed for an employer who employed 10 or more individuals in each of 20 weeks in either the current or preceding calendar year or paid cash remuneration of $20,000 or more in any quarter of the current or preceding calendar year. When agricultural labor is supplied by a crew leader, the employing unit for which the services are performed is the employer of the crew members unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963 or substantially all of the crew members operate or maintain mechanized equipment that is provided by the crew leader. In either of these instances, the crew leader is the employer.
Domestic service .-Domestic service in a private home is covered if performed for an employing unit that paid cash remuneration of $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government and nonprofit employers.- Mandatory coverage is required with respect to services performed for tax-exempt nonprofit organizations employing four or more individuals for some portion of a day in each of 20 weeks within either the current or preceding calendar year.
Services performed for the state and its political subdivisions are mandatorily covered.
Nonprofit organizations.- Nonprofit organizations have the option of financing benefits by either the regular contributions method or the reimbursement method. A political subdivision, department, division or other covered agency of the state may pay contributions or elect to make payments in lieu of contributions.
Nonprofit organizations, state hospitals and state institutions of higher education, and political subdivisions have a choice of the following reimbursement methods: (a) payments equal to the full amount of regular plus extended benefits paid to claimants, or (b) a variable percentage based on total payroll, with an adjustment being made at the end of the taxable year to reflect actual benefit costs.
Nonprofit organizations that elect the reimbursement method and political subdivisions that elect coverage may be required to execute and file a surety bond or, in lieu thereof, to deposit money or securities. Bills must be paid not later than 30 days after mailing.
EXCEPTIONS
Wages.- The following payments do not constitute taxable “wages ”:
Remuneration over an amount determined annually as 75% of average annual wage for preceding 12-month period ending June 30, computed to nearest multiple of $100. For 2009, the taxable wage base is $32,700. Remuneration paid by an employer who was a predecessor for taxing purposes or for employment in another state (up to the taxable limit in that state) may be included in the Alaska taxable wage base.
Stand-by pay to employee 65 or over.
Payments to individual or individual's dependents, under plan or system established on account of retirement, sickness, accident disability, etc.
Other retirement payments, including amounts paid by employer for insurance or annuities or into a fund.
Payment of employee's FICA tax without deduction from wages.
Payments for sickness or accident disability made over six months after separation.
Payments from, to, or under trust or annuity plan exempt from federal income tax.
Noncash remuneration for service not in course of employer's trade or business.
Subsistence payments made to an employee while the employee is employed away from home (board and lodging, meals, per diem, etc.).
Tips or gratuities not reported to the employer (“reporting ” includes reporting of tips for federal tax purposes).
Dismissal payments that employer is not legally required to make.
Supplemental unemployment benefits under private plan.
Any cafeteria plan payment if the payment would not be considered wages without regard to the cafeteria plan (Sec. 23.20.530).
Employment.- The term “employment” does not include the following (Sec. 23.20.526):
Service not in the course of employer's trade or business, unless cash remuneration therefor is $50 or more a quarter and employee works on 24 or more days in that or preceding quarter.
Individuals employed on a boat engaged in catching fish or other aquatic animal life under an arrangement with the boat operator or owner under which the individual receives a share of the boat's catch or a share of the proceeds from such catch.
Individuals who directly sell or solicit the sale of consumer products in the home or otherwise than in a permanent retail establishment, if certain conditions are met.
Insurance agents on commission.
International organization employees.
Maritime employees on other than American vessels or on American vessels if directed or controlled from outside the state.
Persons selling newspapers on the street or house to house.
Nurses, technicians, and other professional employees of nonprofit hospitals.
Real estate brokers or salespersons on commission.
Relatives, i.e., service performed in the employ of the individual's son, daughter, or spouse; service for a parent or legal guardian if the individual is under 21 and a full-time student during eight of the last 12 months and intends to resume full-time student status within the next four months; and service for a mother or father if the service is performed by a child under 18.
Securities salespersons on commission.
Service covered by federal unemployment compensation system providing for payment of benefits.
Services performed by nurses, technicians, and other professional employees of nonprofit hospitals, unless the service is required to be covered under the FUTA.
Service as prospective or impaneled juror.
Services by an executive officer of a corporation if the corporation is incorporated under A.S. 10.06 and is not a government corporation.
Service performed as an official at an amateur sports event.
Service performed by an individual who drives a taxicab and whose compensation and written contractual arrangements are those described in the Alaska Wage and Hour Act (i.e., an individual who drives a cab and is compensated exclusively by customers of the service and whose written contractual arrangements with owners of cabs, cab permits or radio dispatch services are based on flat contractual rates and not on a percentage share of the individual's receipts from customers). The driver's contract must provide that the contract places no restrictions on hours worked or on areas in which the driver may work.
Amateur sporting officials employed by the state or a nonprofit organization, provided FUTA has a corresponding exclusion.
Agricultural and domestic employers.- Agricultural labor is covered if it is performed for an employer who employed 10 or more individuals in each of 20 weeks in either the current or preceding calendar year or paid cash remuneration of $20,000 or more in any quarter of the current or preceding calendar year. When agricultural labor is supplied by a crew leader, the employing unit for which the services are performed is the employer of the crew members unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963 or substantially all of the crew members operate or maintain mechanized equipment that is provided by the crew leader. In either of these instances, the crew leader is the employer.
Domestic service.- Domestic service in a private home is covered if performed for an employing unit that paid cash remuneration of $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government and nonprofit employers.- Mandatory coverage is required with respect to services performed for tax-exempt nonprofit organizations employing four or more individuals for some portion of a day in each of 20 weeks within either the current or preceding calendar year.
Services for the state and tax-exempt nonprofit organizations do not include the following:
Religious duties of a minister or member of a religious order.
Services in the employ of a church or convention or association of churches, or an organization that is operated primarily for religious purposes and that is operated, supervised, controlled or principally supported by a church or convention or association of churches.
Patients performing services in a rehabilitation facility or sheltered workshop.
Individual receiving unemployment work-relief or work training under program financed by federal agency or an agency of a state or political subdivision.
Inmate performing services for state prison hospital or other state correctional institution.
Services performed for a school, college or university by a student who is enrolled and regularly attending classes at the school, college or university.
Service by a student under 22 enrolled at a nonprofit or public education institution in a full-time work-study program. This exemption is not applicable to a program established for an employer or a group of employers.
Service for a hospital by a patient of the hospital.
Beginning 1/1/99, judicial officers, the governor or lieutenant governor, persons hired or appointed as heads or deputy heads of departments in the executive branch, persons hired or appointed as directors of department divisions, assistants to the governor, chairs or members of state commissions or boards, state investment officers and the state comptroller, the Executive Director of the Alaska Tourism Marketing Council, appointed or elected municipal officers, other elected officials, the fiscal analyst of the Legislative Finance Division, the legislative auditor of the Legislative Audit Division, the Executive Director of the Legislative Affairs agency, and the directors of the divisions in the Legislative Affairs Agency.
Members of the Alaska Army National Guard, Alaska Air National Guard or Alaska Naval Militia.
Employees serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency.
PROCEDURES
Base period.- First four of last five completed quarters immediately preceding benefit year. An extension is provided where the worker was incapable of work during the greater part of working time in a calendar quarter. The base period may thus be extended for as many as four quarters.
Benefit year.- A period of 52 consecutive weeks beginning at 12:00 a.m. of the Sunday preceding the day that an insured worker first files a request for determination of his or her insured status, and, thereafter, the period of 52 consecutive weeks beginning at 12:00 a.m. of the Sunday preceding the day that the insured worker next files the request after the end of the last preceding benefit year. However, term also means a period of 53 weeks if the filing of a request for determination would result in overlapping any quarter of the base year of a previously filed request for determination. Note, however, that for an insured worker who, on October 6, 2001, has an established current benefit year, the definition of “benefit year” as it existed on October 6, 2001, has applies to that worker's claim until his or her current benefit year is completed. If an insured worker's current benefit year ends on a day other than Sunday, it will be extended until 11:59 p.m. of the Saturday following that ending week.
Weekly benefit amount.- Effective January 1, 2009, the maximum and minimum weekly benefit amounts are $56 to $370. If the eligible individual is partially unemployed, he or she will receive the weekly benefit amount less 75% of that amount of remuneration payable to him or her that is in excess of $50; the basic weekly benefit amount is augmented by $24 per week, not to exceed $72 per week, for each dependent (Sec. 23.20.350).
Maximum total benefits.- Sixteen to 26 weeks, depending on earnings ratio, i.e., the ratio obtained by dividing the worker's total base period wages by the wages paid in the high quarter, plus, when applicable, extended benefits at weekly benefit rate. Supplemental benefits may also be payable.
Benefit eligibility; Requirements .-
total base period wages of $1,000 ($2,500, effective January 1, 2009), with such wages paid in at least two quarters of the base period. The individual may receive benefits in two successive years if he or she performed services after the beginning of the first benefit year and earned remuneration for services equal to at least eight times the weekly benefit amount excluding allowances for dependents;
serve one-week waiting period;
be able and available for work, except claimant not deemed ineligible because of (a) illness or disability, (b) noncommercial fishing or hunting if such is necessary for survival of claimant and his or her dependents, (c) travel to obtain medical services for claimant or a dependent;
service as a prospective or impaneled juror; or
attendance at the funeral of an immediate family member for a period of not longer than seven days (Sec. 23.20.378).
Benefit eligibility may continue while claimant attends approved training course.
Note that base period wages are the wages paid in the quarters of the base period other than the high quarter, multiplied by 10, if the insured worker is paid 90% or more of wages in the high quarter. If the insured worker is paid less than 90% of wages in the high quarter, base period wages are total amount of wages paid during such base period.
An individual is not considered unemployed if not working during the week because of a leave from the regular employer for a period of four or fewer weeks and the leave is part of a work schedule consisting of alternate periods of work and leave in which the hours of work for one complete period of work and leave average at least 40 hours per week.
Disqualifications-Period.- Leaving suitable work voluntarily without good cause, discharge for misconduct connected with the last work or failure to apply for or accept suitable work-six weeks, with a reduction in maximum potential benefits by an amount equal to three times the weekly benefit amount (excluding dependents' allowances) or the amount of unpaid benefits to which the worker is entitled, whichever is less.
Discharge for felony or theft in connection with work -first week of unemployment and next 51 weeks or until the individual has worked subsequent to the discharge and earned 20 times the individual's weekly benefit amount.
Labor dispute-duration.
Receipt of unemployment benefits under other state or federal law-period for which payments are made.
Receipt of payments to compensate for dismissal without notice, accrued vacation, sick leave or holidays-weekly benefits reduced by amount of such payments.
Receipt of pension, retirement or retired pay, annuity or similar payment based on previous work-weekly benefits reduced by amount of such payments if: (1) pension is provided under a plan maintained or contributed to by a base period employer and (2) except in the case of social security or railroad retirement benefits, service performed or remuneration for such service affects eligibility for or increases the amount of the pension. No reduction will be required with respect to any part of the pension that is attributable to contributions of the claimant.
False statement, misrepresentation, or failure to disclose material fact in order to receive benefits-Not less than seven or more than 52 weeks.
No benefits may be paid to instructors, researchers or principal administrators of an educational institution during school vacation periods and paid sabbatical leaves based on service with such institution.
No benefits may be paid to nonprofessional employees of educational institutions during periods between school years or terms if there is reasonable assurance of reemployment in the second year or term. If no opportunity to work is offered in the second year or term after reasonable assurance has been given, retroactive payments of benefits may be claimed.
Disqualifications similar to that above apply during established and customary vacation periods and holiday recesses, and to individuals performing services for an educational institution while in the employ of an educational service agency.
Benefits are denied a professional athlete for periods between successive sport seasons if there is a reasonable assurance that the individual will perform services in both seasons.
Benefits are not payable to an alien unless the individual has been lawfully admitted for permanent residence or is otherwise permanently residing in the United States under color of law.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- 5.4%. New employers who have not been subject to the law for a sufficient period to be entitled to an experience rate pay at an average rate determined for their industry. Maximum possible rate for employers is 6.5% (including fund solvency adjustment tax of 1.1% maximum amount). Employees pay rates ranging from 0.5% to 1.0%.
Experience rating.- Minimum requirement for experience rating is met if employer has been subject to the law for four consecutive quarters ending on June 30 (the computation date). Up to 12 such consecutive quarters-the qualifying period-are considered in determining rates.
For any such quarter (except the first) in which payroll is less than payroll in the preceding quarter, a “quarterly decline quotient” is computed to at least nine decimal places by dividing the amount of the decline by payroll in the preceding quarter. All such quotients in qualifying period are added, and for each quarter in which the employer has had no payroll that is preceded by a quarter of no payroll, an additional 1.0 is also added. This sum is then divided by the number, less one, of quarters in the qualifying period, giving an “average quarterly decline quotient.” An employer's “ratable payroll,” i.e., its taxable payroll in the year ending June 30, is then determined. All employers are ranked in order of average quarterly decline quotients, and “cumulative ratable payroll ” is determined for each by adding its ratable payroll to those of all employers that precede it in the list.
Each employer's contribution rate will be 76%, effective January 1, 2009, and 73% effective January 1, 2010, of the average benefit cost rate multiplied by its experience factor, plus the applicable fund solvency adjustment required for the year that may range from a positive 0% to 1.1% or a negative 0.1% to 0.4%. An employer's total rate may not be less than 1.0% or more than 6.5%. Experience factors for the various rate classes are set out in the following table (Sec. 23.20.290):
Column ARate Class
|
at least
|
Column BCumulativeRatable Payrollbut less than
|
Column CExperienceFactor
|
|---|
1
|
|
|
.
|
5
|
|
|
.40
|
2
|
|
5
|
|
10
|
|
|
.45
|
3
|
|
10
|
|
15
|
|
|
.50
|
4
|
|
15
|
|
20
|
|
|
.55
|
5
|
|
20
|
|
25
|
|
|
.60
|
6
|
|
25
|
|
30
|
|
|
.65
|
7
|
|
30
|
|
35
|
|
|
.70
|
8
|
|
35
|
|
40
|
|
|
.80
|
9
|
|
40
|
|
45
|
|
|
.90
|
10
|
|
45
|
|
50
|
|
1
|
.00
|
11
|
|
50
|
|
55
|
|
1
|
.00
|
12
|
|
55
|
|
60
|
|
1
|
.10
|
13
|
|
60
|
|
65
|
|
1
|
.20
|
14
|
|
65
|
|
70
|
|
1
|
.30
|
15
|
|
70
|
|
75
|
|
1
|
.35
|
16
|
|
75
|
|
80
|
|
1
|
.40
|
17
|
|
80
|
|
85
|
|
1
|
.45
|
18
|
|
85
|
|
90
|
|
1
|
.50
|
19
|
|
90
|
|
95
|
|
1
|
.55
|
20
|
|
95
|
|
95
|
.99
|
1
|
.60
|
21
|
|
99
|
.99
|
|
|
1
|
.65
|
The law provides that no employer in rate class 21 may pay less than 5.4%, including the solvency adjustment.
The fund solvency adjustment for a year will depend on the reserve rate of the fund, i.e., the relationship of the fund balance to the highest benefit cost rate over a one-year period ending on September 30. Note that the fund solvency adjustment may not increase or decrease more than 0.3% from one year to the next.
Each employee's contribution rate will be determined as 24%, effective January 1, 2009, and 27%, effective January 1, 2010, of the average benefit cost rate multiplied by the employer's experience factor, plus the applicable fund solvency contribution, but not less than 0.5% or more than 1.0% (Sec. 23.20.290).
For 2009, the average benefit cost rate is 0.017768 and the trust fund reserve rate is 0.034072. There is also a -0.002% trust fund solvency adjustment in 2009. Delinquent employers pay at the highest rate applicable for a calendar year. The employee tax for 2009 is 0.50%.
SUTA dumping.- If an employer transfers its trade or business, its workforce, or a portion thereof, to another employer and, at the time of the transfer, there is substantially common ownership, management, or control of the two employers, then the unemployment experience attributable to the transferred trade, business, or workforce is transferred to the employer to whom that trade, business, or workforce is transferred and the rates of both employers are recalculated and made effective immediately upon the date of the transfer.
If a person is not an employer at the time the person acquires the trade, business, or workforce of an employer, the unemployment experience may not be transferred to that person if the commissioner finds that the acquisition was made in order to obtain a lower rate of contributions; instead, the person is assigned the applicable new employer rate.
An employer who knowingly or recklessly violates or attempts to violate, or who advises another employer to violate, this or any other provision of the chapter related to determining the assignment of a contribution rate, or fails to notify the department of a trade, business, or workforce change or acquisition in order to obtain a more favorable rate of contributions, is not eligible for a rate determination under AS 23.20.280 - 23.20.310. The employer shall pay one of the following as assigned by the department: (1) contributions at the highest rate provided for the rate year of the violation and for the three succeeding rate years; or (2) if the employer’s trade, business, or workforce is already at the highest rate for the rate year of the violation, contributions at the highest rate for the three succeeding rate years and a cash penalty of two percent of taxable wages for the rate year of the violation and three succeeding rate years.
Civil penalties of not more than $5,000 are applicable.
DEADLINES
Tax.- Employers must report both contributions and wages on Form TQ01C, Alaska Quarterly Contribution Report, which along with remittance, is due quarterly on or before the last day of month following end of calendar quarter. If due date falls on a Saturday, Sunday, or state holiday, it is extended one business day. Reports postmarked on or before midnight of due date are considered timely. Employers must file via magnetic media or on the Internet if they have 250 or more employees.
First-time filers of the contribution and wage report receive Form TQ01, a packet containing the contribution report and detailed instructions.
Wage.- Detailed quarterly wage report also must be filed with contribution report on Form TQ01C.
ENFORCEMENT
Records.- No person may be excused from attending and testifying or from producing books, papers, correspondence, memoranda, and other records before the Department, or in obedience to a subpoena of the Department in a cause or proceeding before the Department, or an Appeal Tribunal, on the ground that the testimony or evidence required of that individual may tend to incriminate the individual or subject him or her to a penalty or forfeiture. After claiming the privilege against self-incrimination a person may not, however, thereafter be prosecuted or subjected to a penalty or forfeiture concerning that with which he or she was compelled to testify or produce evidence, except that the individual will not be exempt from prosecution and punishment for perjury committed in testifying. A subpoena may be issued to compel the attendance of witnesses and the production of records. In cases of contumacy or failure to respond to a subpoena, a court order may be issued.
Nonpayment.- If, after notice, an employer defaults in the payment of contributions or interest, the amount due may be collected by a person authorized by law and by the Department or by civil action in the name of the State of Alaska, or by both methods. The Department must include in the amount due the fees or costs charged by the person for the collection of the delinquent account. An employer who is liable must pay the cost of the collection, including collection fees charged and the costs of legal action. Liens created by the law may be foreclosed by the Court in any such action. All other civil actions brought under this section to collect contributions take preference in the Court's calendar over most other civil actions. The courts of Alaska may entertain actions in the same manner to collect contributions that have accrued under the employment security law of any other state.
The attorney general may commence action in Alaska as agent for and on behalf of any other state to enforce judgments and liabilities for unemployment insurance contributions, penalties, interest and benefit overpayments due such state, which extends a like comity to Alaska, if the requesting state agrees to pay any costs that may be assessed by the court against the plaintiff.
If the Department finds that contributions or interest and penalties thereon have become delinquent, a notice of assessment specifying the amount due may be issued and served on the delinquent employer in the manner described in the law. If the amount is not paid within 30 days it may be collected by distraint, seizure, and sale of the property (except property exempt from execution) of the delinquent employer.
Appeal.- On receipt of the notice of assessment, however, the delinquent employer may within 30 days file a written appeal with the Department stating that the assessment is unjust or incorrect and requesting a hearing on it. The period for filing an appeal may be extended for a reasonable period for good cause. The appeal must set out the reasons the assessment is objected to and the amount of contributions that the employer admits is due, and must be accompanied by a bond or deposit in the amount of the assessment to ensure collection. The department may waive the security requirement if the employer submits proof of solvency or reasonable assurance that the amounts owed are not in jeopardy. If the employer fails to provide the required security, collection is not stayed. If the appeal is accompanied by the required security or security has been waived, filing an appeal stays the sale of the employer's property until a final decision on the assessment is made. However, filing an appeal does not affect the Department's right to perfect a lien. The Department's decision on the appeal, after a reasonable opportunity for fair hearing is granted to the petitioner, is final unless the petitioner initiates a proceeding for judicial review. If an assessment becomes final, a judgment in the amount of the assessment is, upon application of the Department, entered by the Superior Court.
Property of the delinquent employer is seized, inventoried, and sold, and any excess over the cost of the proceeding and the amount delinquent is refunded to the employer.
Time periods.- Actions for the collection of contributions, interest, and penalties may not be begun after the expiration of five years after a return is filed. After such period the delinquent contribution may be charged off as uncollectible. However, in the case of a false or fraudulent return with intent to evade contributions, or in the event of a failure to file a return, the contributions may be assessed, or a proceeding in court for the collection of such contributions may be begun, at any time.
Within two years after contributions or interest are erroneously paid, an employer may file a written petition to the Department for an adjustment of the payment as an offset against subsequent contribution payments, or for a refund of the payment when the adjustment as an offset cannot be made, if such erroneously collected interest and penalties were deposited and retained in the Unemployment Compensation Fund. If the Department upon ex parte consideration finds that the contributions or interest or portion thereof were erroneously collected, it will allow the employer to make an adjustment thereof without interest. For like cause and within the same period, adjustment or refund may be made on the Department's own motion.
If the Department finds on ex parte consideration that it cannot determine that adjustment or refund should be allowed, it will deny the petition and notify the employer. Within 30 days after such notification, the employer may file a petition in writing with the Department for the purpose of obtaining a hearing. The petition must set forth the reasons why such hearing should be granted and the amount which the petitioner believes should be adjusted or refunded. The Department's decision on the hearing will be final unless the petitioner initiates a timely proceeding for judicial review.
If not later than two years after the date of payment of any interest or penalties an employer determines that the payment was erroneously made, a written petition may be filed with the Department to have any subsequent amount of interest or penalties assessed against the employer adjusted by the amount of the erroneous payment, or if such an adjustment would not be feasible within a reasonable time, the employer may request a refund of the erroneous payment. If the Department upon ex parte consideration determines that the payment of interest or penalties was erroneous, it will allow the employer either an adjustment, without interest, or a refund.
There is no provision in the Alaska law for adjustment of employer contributions that have been paid to the wrong state.
The law provides that an employer may not deduct employee contributions from wages in excess of the taxable wage limitation paid to an employee in a calendar year. If, however, an employee earns wages in excess of taxable wage limitation in one calendar year in the employ of more than two or more employers or if an employer through error deducts more than the correct amount of contributions from an employee's wages, the amount in excess of the proper amount of contributions will be refunded to the employee. Application for refund must be made in accordance with regulations prescribed by the Commissioner, and must also be made within the calendar year following the year in which the excessive deductions occurred.
Liens.- A claim for any contributions, interest, and penalties not paid when due is a lien in favor of Alaska against all the real and personal property of the employer. Liens created by the Act may be foreclosed by court decree in any civil action to collect unpaid contributions.
In the event of distribution of an employer's assets pursuant to an order of any court (including any receivership, probate, legal dissolution, or similar proceedings), contributions then or thereafter due are a lien on all the assets of the employer. Liens for contributions have priority over all other liens or claims except (1) prior tax liens, (2) liens for delinquent contributions, and (3) claims for remuneration for service of not more than $250 to each claimant earned by the claimant within six months of the beginning of the proceeding. However, the Department is authorized to compromise any claim for contributions, interest or penalties in any case where collection of the full claim would result in the insolvency of the employing unit or individual.
WHO TO CONTACT
The Alaska Employment Security Act is administered by the Department of Labor, Employment Security Division, P.O. Box 25509, Juneau, Alaska 99802-5509; Telephone (907) 465-2712. Fax: (907) 465-4537. E-mail: ESD_Director@labor.state.ak.us.
RECORDKEEPING
The Alaska law requires that each employing unit must keep true and accurate work records containing such information as the Department may prescribe. The records are to be open to inspection and are subject to being copied by the Department at any reasonable time and as often as may be necessary (Sec. 23.20.105).
Regulation 8 AAC 85.020 of the Department states that an employing unit is required to preserve existing and future records for a period of five years, and specifies the information to be kept therein. Employers are required to make available for inspection by the Department, upon request, all accounting, cash, payroll and tax records of the employer, including personal tax records of officers, partners, and proprietors.
No particular form in which payroll records are to be kept has been prescribed.
The law provides that the Department may require from any employing unit any sworn or unsworn reports regarding persons employed by the employing unit that are deemed necessary for the effective administration of the law. If an employing unit fails or neglects to make or file any report or return that is required by the law or regulations, the Department may, on behalf of the employing unit, arbitrarily make a report on the basis of information available to it. A report thus made is deemed prima facie correct.
PENALTIES
Contribution reports and wage schedules not made and filed by the date on which they are due as prescribed by the Department are subject to a penalty of 5% of the contributions due if the failure to file on time did not exceed 30 days. For each additional period of 30 days or less thereafter an additional 5% is added. The penalty may not, with respect to each reporting period, be more than 25% of the amount due or less than $10. No penalty is assessed if it is shown to the satisfaction of the Department that failure to file was due to a reasonable cause.
If contributions are unpaid after 30 days from the date of mailing or personal delivery of a written demand for payment, a penalty equal to the greater of 10% of the contributions due or $10 will be assessed and collected. The penalty does not attach if arrangements for payment are made with the Department within 30 days after mailing or personal delivery of the demand, and payments are made in accordance with such arrangements.
If contributions or reimbursement payments are not paid on the date on which they are due and payable as prescribed by the Department, the whole or part thereof remaining unpaid bears interest at the rate of 12% per year from and after such date until payment plus accrued interest is received by the Department. Interest does not accrue on contributions or reimbursement payments from any estate in the hands of a receiver, executor, administrator, trustee in bankruptcy, common-law assignee or other liquidation officer subsequent to the date when such individual qualified as such. However, contributions accruing with respect to employment by any receiver, executor, etc., become due and draw interest in the same manner as contributions due from other employers.
An employer who has elected to make reimbursement payments and who fails to file a contribution report and wage schedule on the due date is subject to a penalty, to be assessed and collected in the same manner as for contributing employers. If the report is filed not later than 30 days after the due date, the penalty is 0.1% of the total wages paid for the quarter. For each additional 30-day period or its fraction, the penalty is an additional 0.1% of the total wages paid for the quarter. The penalty may not exceed 0.5% of total quarterly wages and may not be less than $10 for each reporting period.
Interest on contributions or reimbursement payments that are collected by means of a jeopardy assessment does not begin to accrue until the date when the contributions would normally have become delinquent.
Where the Department has authorized a compromise to an employing unit or an individual liable in respect to contributions or reimbursement payments, interest or penalties and where an interested party is convicted of willfully concealing property, falsifying records, or making a false statement under oath, that individual will be fined not more than $5,000 or imprisoned for not more than one year, or both.
A penalty is provided in the law for the collection of employee contributions, which an employer is required to withhold from the wages of its employees and hold in trust until paid to the Department. If an employer converts to its own use or otherwise misappropriates employee contributions, the employee is required to pay the amount converted or misappropriated, plus a penalty of five times such amount but not less than $25. If the conversion or misappropriation is willful the employee will be held guilty of a misdemeanor and, on conviction, will either be fined a maximum of $200, or imprisoned for not more than 60 days, or both.
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