ES Tax FAQs
Wages and deductions questions
2026 Experience Rates - 2026 Industry Rates
2025 Experience Rates - 2025 Industry Rates
What is the taxable wage base for this year? What was it last year?
In addition to the wage base you will probably need to know the standard rate for each year. If you do not have a rate for the appropriate year, please use the standard rate.
| Year |
Wage Base |
Standard
Rate |
Employee
Rate |
Employee Total |
|---|---|---|---|---|
| 2026 | $54,200 | 1.50% | 0.50% | $271.00 |
| 2025 | $51,700 | 1.50% | 0.50% | $258.50 |
| 2024 | $49,700 | 1.66% | 0.50% | $248.50 |
| 2023 | $47,100 | 2.37% | 0.51% | $240.21 |
| 2022 | $45,200 | 3.00% | 0.56% | $253.12 |
| 2021 | $43,600 | 2.57% | 0.50% | $218.00 |
| 2020 | $41,500 | 1.59% | 0.50% | $207.50 |
| 2019 | $39,900 | 1.78% | 0.50% | $199.50 |
| 2018 | $39,500 | 1.82% | 0.50% | $197.50 |
| 2017 | $39,800 | 2.23% | 0.50% | $199.00 |
| 2016 | $39,700 | 2.60% | 0.50% | $198.50 |
| 2015 | $38,700 | 3.02% | 0.57% | $220.59 |
| 2014 | $37,400 | 3.59% | 0.62% | $231.88 |
| 2013 | $36,900 | 4.43% | 0.68% | $250.92 |
| 2012 | $35,800 | 4.11% | 0.66% | $236.28 |
| 2011 | $34,600 | 3.40% | 0.58% | $200.68 |
| 2010 | $34,100 | 2.60% | 0.50% | $170.50 |
| 2009 | $32,700 | 2.46% | 0.50% | $163.50 |
| 2008 | $31,300 | 2.96% | 0.50% | $156.50 |
| 2007 | $30,100 | 3.54% | 0.50% | $150.50 |
| 2006 | $28,700 | 4.15% | 0.51% | $146.37 |
| 2005 | $27,900 | 4.19% | 0.50% | $139.50 |
| 2004 | $27,100 | 3.83% | 0.50% | $135.50 |
| 2003 | $26,700 | 3.46% | 0.50% | $133.50 |
| 2002 | $26,000 | 3.69% | 0.50% | $130.00 |
| 2001 | $25,500 | 3.84% | 0.52% | $132.60 |
| 2000 | $24,800 | 3.97% | 0.54% | $133.92 |
| 1999 | $24,500 | 3.90% | 0.54% | $132.30 |
| 1998 | $24,100 | 4.15% | 0.56% | $134.96 |
| 1997 | $24,200 | 4.31% | 0.58% | $140.36 |
| 1996 | $24,400 | 4.10% | 0.50% | $122.00 |
Are 401(k) deductions reportable?
No. A 401(k) is an IRS qualified retirement plan, and therefore, meets our criteria for exclusion from the definition of wages. There is more information about this in the Tax Handbook in the section about Retirement Plans and Section 125 Cafeteria Plans.
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I just hired an employee who tells me that I shouldn't deduct employment security tax from his check because he's not qualified to collect benefits. Is that true?
No. Alaska statutes require that every employer pay unemployment insurance contributions on every employee. There are no exceptions based on an employee's ability to collect unemployment insurance if they are not working.
My employees are the best. If I give them a bonus do I have to pay contributions?
Yes. Bonuses are considered to be wages and therefore you must pay UI contributions on these amounts. However, since a bonus can create an artificial rise and decline in your wages, which might cause future rates to be higher than they should, the bonus can be optioned out.
If you would like to know more about the option process, contact your nearest ES Tax representative.
Are the wages/salaries/draws paid to corporate officers reportable for ES contributions?
If the corporation was formed under Alaska Statute 10.06 wages paid to corporate officers are not covered for unemployment and should NOT be listed on the wage schedule portion of the Employer's Quarterly Contribution Report OR be included in the total wages on Line 2 of the report.
Non-profit organizations and financial institutions are not incorporated under AS 10.06 and any corporate officer wages for these entities must be reported.
Corporations that have an approved election of coverage on file for their corporate officers should list each corporate officer's wages as for any other employee. Corporate officers who have elected coverage are subject to the same reporting requirements and taxable wage base as other employees until such time as coverage is ended. Coverage may be ended by written notification no later than March 15 of the year for which termination is requested.
Are the wages/salaries/draws paid to partners or sole proprietors reportable for ES contributions?
This one is easy. No.
Neither partners nor sole proprietors are covered for unemployment, and neither may elect coverage. Partners and sole proprietors are considered self-employed and are working for the profit, or the loss, of the business not for wages. Even though they may be drawing a salary during the year, this is actually a draw against the profits of the business.
Are the wages/salaries/draws paid to an Limited Liability Company manager reportable for ES contributions?
An LLC (Limited Liability Company) can have a member working as a manager or a non-member employed as a manager. A non-member manager is considered an employee and their wages are covered for ES Tax purposes and subject to the same reporting requirements and taxable wage base as other employees.
Is the employee portion of Unemployment Insurance (UI) contributions deductible for federal income tax purposes?
Please remember we are not experts in federal tax law. However, we have been told by the Internal Revenue Service, that employment security tax can be deducted on the federal individual income tax return, Form 1040, under Schedule A, line 8 (other taxes). They have even provided copies of three Revenue Rulings (81-192, 81-193, 81-194) to support this advice.
Are my employee expense reimbursement payments reportable?
In order for a payment to qualify as a reimbursement for expenses, the employer must maintain evidence the reimbursement reflects the actual expenses incurred. Reimbursement payments made without evidence are not considered expense reimbursements and should be included on your quarterly contribution report as wages.
Employee expenses reimbursements must:
- have a business connection to the expenditure;
- reflect the date, time, place, amount and the business purpose of the expense. (Receipts are required unless the reimbursement is made under a valid per diem plan.)
Reimbursements or allowances in excess of actual expenses incurred by the employee are considered reportable wages unless the employee returns the excess amount. Your travel policy should also list the above elements or travel expense will be considered reportable wages.
Are the wages/salaries/draws paid to a Limited Liability Member reportable for ES Tax, even if I am an S Corp with the IRS?
No. If you form or register as an LLC with the state of Alaska or another state, member wages are not covered for ES tax purposes, nor can coverage be elected. ES Tax recognizes your entity as it is registered with the state regardless of whether the business files as a sole proprietor, partnership, or S corporation for federal income tax purposes.
