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- Alaska Statutes.
- Title 23. Labor and Workers' Compensation
- Chapter 20. Alaska Employment Security Act
- Section 290. Rate Determination.
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Section 285. Quarterly Decline Quotients.
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Section 293. Requirement to Notify the Department of a Business Change and Acquisitions.
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) The rate of contributions for each employer is a percentage 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 surcharge required under (f) of this
section. That percentage is 76 percent beginning January 1, 2009, and 73 percent beginning January 1, 2010. 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) The rate of contributions payable by each employee
of an employer who is subject to AS 23.20.165
is a percentage of the average benefit cost rate as determined in (e) of this section rounded to the nearest 1/100th of
one percent. That percentage is 24 percent beginning January 1, 2009, and 27 percent beginning January 1, 2010. 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 surcharge if the reserve rate is less than three percent. The surcharge is
a percentage equal to the difference between three percent and the reserve rate, rounded to the nearest 1/100 of one percent. An
employer shall receive a fund solvency adjustment credit if the reserve rate is greater than 3.3 percent. The credit is a percentage
equal to the difference between 3.3 percent and the reserve rate rounded to the nearest 1/100 of one percent. The solvency surcharge
may not be greater than 1.1 percent, and the solvency credit may not be greater than 0.4 percent. However, an employer's fund solvency
adjustment surcharge may not increase more than 0.3 percent from one year to the next year.
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