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- Alaska Statutes.
- Title 23. Labor and Workers' Compensation
- Chapter 20. Alaska Employment Security Act
- Section 290. Rate Determination.
previous: Section 285. Quarterly Decline Quotients.
next: Section 295. Rates For Successors in Business.
AS 23.20.290. Rate Determination.
- (a) The department shall determine each eligible employer's ratable payroll. The department shall then put all eligible
employers in the order of their average quarterly decline quotients beginning with the smallest average decline
quotient and shall determine, with respect to each employer, the cumulative ratable payroll during the four consecutive
quarters ending with the computation date of the employer together with all employers who precede the employer on the
list.
- (b) The department shall segregate the employers into groups in accordance with cumulative ratable payroll. The limits of
the groups are those set out in column B of the table in (c) of this section. Each of these groups shall be identified
by the rate class number in column A which is opposite the figures in column B which represent the percentage limits of
each group. An employer shall be assigned the experience factor in column C which is opposite the rate class in which
the greater part of the employer's ratable payroll falls. If one-half of the employer's ratable payrolls falls in one
class, and one-half in another, the employer shall be assigned to the lower numbered rate class. An employer may not
be assigned to a higher numbered rate class than is assigned to another employer with the same average quarterly
decline quotient.
- (c) Beginning January 1, 1997, the rate of contributions for each employer is 80 percent of the average benefit cost rate
multiplied by the employer's experience factor set out in column C of the table in this subsection opposite the
employer's applicable rate class set out in column A plus the fund solvency adjustment required under (f) of this
section. However, the rate of contributions for an employer may not be less than one percent or more than six and
one-half percent. The rate of contributions for an employer in rate class 21 may not be less than 5.4 percent. The rate
of contributions for an employer must be rounded to the nearest 1/100th of one percent.
COLUMN A COLUMN B COLUMN C
Rate Class Cumulative Experience
Ratable Payroll Factor
at least but less than
(percent) (percent)
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 99.99 1.60
21 99.99 1.65
- (d) Beginning January 1, 1997, and for each succeeding year thereafter, the rate of contributions payable by each employee
of an employer who is subject to AS 23.20.165
is 20 percent of the average benefit cost rate as determined in (e) of this section rounded to the nearest 1/100th of
one percent. However, the rate of contributions for an employee may not be less than one-half percent or more than one
percent.
- (e) The department shall determine the average benefit cost rate as follows:
- (1) the department shall determine the amount of benefits paid to insured workers during the last three computation years;
- (2) the department shall subtract from the amount determined in (1) of this subsection the amount of any benefits
reimbursed to the fund and the amount of interest earned on the trust fund balance during those computation years;
- (3) the department shall divide the amount determined in (2) of this subsection by the total wages paid by all employers
required to pay contributions under this chapter during the first three of the last four computation years;
- (4) the department shall determine the amount of total wages subject to contributions under this chapter paid during the
preceding computation years;
- (5) the department shall determine the amount of all wages paid to insured workers during the preceding computation year;
- (6) the department shall subtract from the amount determined in (5) of this subsection the amount of wages paid during the
preceding computation year by employers who elect to reimburse the department under AS 23.20.276
and 23.20.277;
- (7) the department shall divide the amount determined in (4) of this subsection by the amount determined in (6) of this
subsection; and
- (8) the department shall divide the amount determined in (3) of this subsection by the amount determined in (7) of this
subsection.
- (f) An employer shall pay a fund solvency adjustment equal to the contribution rate set out in column B of the table in
this subsection opposite the reserve rate of the fund set out in column A. However, the fund solvency adjustment rate
of an employer may not increase or decrease more than three-tenths of one percent from one year to the next.
COLUMN A COLUMN B
Fund Solvency
Reserve Rate Contribution
at least but less than (percent)
(percent) (percent)
3.6 -0.4
3.5 3.6 -0.3
3.4 3.5 -0.2
3.3 3.4 -0.1
3.0 3.3 0.0
2.9 3.0 0.1
2.8 2.9 0.2
2.7 2.8 0.3
2.6 2.7 0.4
2.5 2.6 0.5
2.4 2.5 0.6
2.3 2.4 0.7
2.2 2.3 0.8
2.1 2.2 0.9
2.0 2.1 1.0
2.0 1.1
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2004. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort
has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
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Last modified 9/3/2005