Unemployment Insurance Tax (FUTA/SUTA): Alaska
Federal law and guidance on this subject should be reviewed together with this section.
Author: Alice Gilman
- Alaska uses the ABC test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See ABC Test.
- The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions and bonuses and the cash value of all compensation paid in any medium other than cash. The annual total SUI tax rate is based on a range of rates. Employees in Alaska make unemployment insurance contributions in addition to employers. Employers must provide a statement to each employee showing deductions made from the employee's wages for employee contributions. See SUI Taxable Wages; Contribution Rates.
- The Alaska anti-SUTA dumping law mirrors the federal SUTA Dumping Prevention Act. Under state law, employers that knowingly attempt to manipulate businesses to get a lower tax rate are liable for serious penalties. See SUTA Dumping.
- The state does not permit voluntary contributions to lower SUI tax rates. However, employers may lower a key figure that factors into the calculation of their experience rates. See Voluntary Contributions.
- An employer that is required to make unemployment insurance contributions must file quarterly reports. In addition, employers that operate more than one establishment in Alaska may be requested to submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
- An employer's account will not be relieved of charges for benefit overpayments resulting from the employer's failure to respond timely or adequately to requests for information about the underlying claim. See Benefit Overpayments.
- All employers in Alaska must maintain records for each employee for five years and keep them available for inspection by the state Division of Employment and Training Services. See Recordkeeping Requirements.