Alaska Payroll Updates - December 2024

Alaska Unemployment Insurance Tax Newsletter Highlights Key Information for Employers

The Alaska Department of Labor and Workforce Development released its Unemployment Insurance Tax newsletter for December 2024, providing crucial information for employers. The newsletter highlights that 2025 tax rate notices will be mailed in early December 2024, reminding employers to update their payroll systems accordingly. It emphasizes the importance of timely submission of fourth-quarter reports and payments by January 31, 2025, to avoid potential reductions in Federal Unemployment Tax Act (FUTA) credits. The document also clarifies which types of employer payments should be included or excluded from the Quarterly Contribution Report, such as various pre-tax benefits and reimbursements. Additionally, the newsletter stresses the need for employers to promptly notify the Employer Account Unit of any business changes, including ownership transfers or acquisitions, to ensure they are paying the lowest possible contribution rate.

Alaska 2025 Unemployment Tax Information

The Alaska Department of Labor and Workforce Development announced unemployment tax rate information for 2025. The taxable wage base will increase to $51,700 in 2025. The new employer tax rate across all industries will be 1.0% in 2025. The experienced employer tax rate range will be from 1.0% to 5.4%. It is important to note that the rate for rate classes one through 20 will be 1.0%, and the rate for rate class 21 will be 5.4%. The employee tax rate continues to be 0.50%.

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