Alaska Unemployment Tax Relief Amidst COVID-19 Pandemic

By April 9, 2020July 6th, 2020COVID-19, SUI Tax

Alaska employers affected by the COVID-19 outbreak may receive unemployment tax relief under an emergency rule that took effect April 6, 2020.

Under the rule, employers may request that the Alaska Department of Labor and Workforce Development adjust fluctuations in payroll that are directly related to the spread of COVID-19.

Alaska is the only state that utilizes the decline quotient method when calculating unemployment tax rates, which takes into account when wages paid to employees decrease from one quarter to the next. Employers generally may request adjustments to the calculation using an employer option form.

Adjusted fluctuations must occur during the emergency declaration period, which was enacted March 11, 2020 by Gov. Mike Dunleavy.

Additionally, the rule requires employers to provide former employees with information about unemployment benefits within seven of the employee’s last days of work.

Our office will be monitoring these situations closely and will send out additional announcements or make postings on our website (http://covid19.thomas-and-company.com/covid-19/) as we become aware of new developments.

Josh Kendall

Author Josh Kendall

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