labor lawAdivision of labor law center

The Alaska Unemployment office sent 1099 statements in January to those who received unemployment benefits last year.  This statement includes the total amount paid and any deductions, tax or otherwise, made to the benefits.  This is the same form that companies use for records of services rendered by people other than regular employees, such as independent contractors or casual labor.

In addition to those who received unemployment benefits, there are others who may get 1099 statements mailed to them.  Anyone who offers personal professional services for a business may also be issued a form.

The W-2 is required to be issued by employers to all employees.  Anyone who works for a company should get one of these forms at the beginning of each year.  All taxes withheld for the year are recorded on this document.  When taxes are filed, this information is used to calculate overpayment and the amount of refund.  It may also show that more taxes need to be paid.

If you do not have an employer, your income is subject to taxes, including unemployment benefits.  Independent contractors, for example, need to report income minus business expenses and pay taxes accordingly.  A self-employed individual with a high income will be required to make quarterly estimated tax payments throughout the year as money comes in.  You may be issued a 1099 for tasks performed for a company that hired you on a project basis, and does not consider you an employee.  This can assist in calculating total income.

In Alaska, 1099 forms have already been issued.  If you were unemployed for any period of time and claimed your benefits, the form should be in hand at this time.  If not, your address may be incorrect and you should contact the Alaska department of labor.  The period for a reissue is typically one week.

I am taking a second or two today, to briefly describe the Alaska Employment Security Tax. Alaska is one of the states in the union that charges an Employment Security tax for the use in unemployment funds. Minimum award of a qualified employee’s unemployment is $44.00 a week. Maximum is $248.00 a week. However, those unemployed and collecting unemployment benefits who have children or dependants under the age of 18, (No age restriction if the dependant is disabled.), can receive an extra $24.00 per dependant.

The employer is taxed a percentage of the payroll each year for unemployment taxes. In 2005 it was on average 2.5% of reported payroll. Each year employers will be assigned an Unemployment Insurance tax rate.

However, those who are a non-profit organization, (Agencies and governments who do not make a profit), have the option to reimburse the state for any unemployment claims their former employee’s may be entitled.

Employer’s are required to report their earnings each quarter. However the taxes may not be due at the same time as the payroll report, so you do not have to send your tax payment in with your quarterly reports, but will have a separate due date for each.

For more information on the Alaska unemployment tax, contact your accountant or other qualified CPA.