ES Tax FAQs
Account status questions
I don't have an employment security tax account yet; can I still file a report?
Yes, you can still send your Alaska Quarterly Contribution report with “Applied For” in the account number field, along with a payment. Quarterly contribution reports are available on our website at Forms/Publications. To calculate the contributions due, use our standard rate located at Rate/Taxable Wage Base.
If I'm self-employed, do I need to have an ESC account?
Maybe. If you have employees, you will need to set up an account with us to report and pay unemployment insurance contributions on your employees.
However, if you do not have any employees, you do not need to set up an account with us. Sole proprietors, partners, and LLC members are not considered employees as they work for the profit/loss of the business. Wages paid are actually a draw against a share of the profit of the business. This is different than working for a corporation where the individuals are working for the corporate entity and profits can be distributed to share holders in the corporation.
My business has changed from a sole proprietor to a corporation. I have the same business and the same owner, why do I need a new state ID number?
Anytime an entity change occurs a new account needs to be set up. This is because when you change entity types, the Internal Revenue Services (IRS) will issue a new Federal Identification Number (FEIN). Employment Security Tax must report to the IRS the amount of wages each employer (and FEIN) reports to us. The amount we report must match what you have reported.
A partner of mine has left our partnership. Would you take his name off the account?
Before we can do that we need to know a couple of things.
First, have you contacted the Internal Revenue Service (IRS) about this change? If so, did they require you to apply for a new Federal Identification Number (FEIN)?
If the IRS has issued you a new FEIN then we are going to have to issue you a new account number. This is because of the requirement that our reports to the IRS (which are based on what you report to us) must match what you report to them or we both get messages from the IRS.
If a new FEIN is not required, then we would be happy to update the account information as needed. Please send us an updated Employer Registration Form (form 1002) and we will make the necessary changes.
My spouse died and our business was in his name. Would you change the name of the account to mine?
Before we can do that we need to know a couple of things. First, have you contacted the Internal Revenue Service (IRS) about this change? If so, did they require you to apply for a new Federal Identification Number (FEIN)?
If the IRS has issued you a new FEIN then we are going to have to issue you a new account number. This is because of the requirement that our reports to the IRS (which are based on what you report to us) must match what you report to them or we both get messages from the IRS.
If a new FEIN is not required, then we would be happy to update the account information as needed. Please send us an updated Employer Registration Form (form 1002) and we will make the necessary changes.
I don't have any employees this quarter. Do I still need to file a report?
Yes. Every business with an open account must file a quarterly contribution report. However, if you are not going to have employees for a two or more quarters call us and we can close your account. Accounts can usually be reinstated within three years of the closure date. After that time, we will assign a new account number.
Why did you close my account? I'm still in business.
If we have closed your account, it is probably because you filed four or more consecutive zero reports (reports that indicate you have no employees and have paid no wages). Every business with an open account must file a quarterly contribution report. A business that ceases to have employees can have their account closed. If the business later hires employees the account can be reinstated.
Another reason we may have closed your account is because we were notified that a majority of your Alaska business assets were sold or you had an FEIN change.
