Higher unemployment insurance expenses are never on any employer’s holiday shopping list. For the state of Alaska, it appears that 2015 will bring about the gift of a lower tax rate once more.

According to a news release from Alaska Gov. Sean Parnell, the average unemployment insurance tax rates will decrease across the state by 19 percent next year. Last year, the reduction was 22 percent.

“These reductions over two years represent a savings of $91 million, money that Alaskans are keeping in their pockets,” Parnell said in a statement. “Alaska’s UI Trust Fund is fully solvent and at pre-recession levels. This ensures the trust will continue to be a safety net in times of need for Alaskans who pay into the system.”

Parnell further explained that Alaska employers can expect to see final unemployment insurance tax rate notices in early December. These changes over the past two years are related to the solvency of the state’s unemployment trust fund, as well as legislation that prevented increases from taking place once the stability of the trust fund was no longer in question.

At the moment, the UI trust fund is slightly above $399 million.

“Alaska employers can expect a 19 percent tax rate reduction in 2015.”

Alaska unemployment rate holds steady
In addition to the tax rate decrease for 2015, the Alaska Department of Labor and Workforce Development reported that the seasonally adjusted unemployment rate in October was at 6.8 percent.

This is the same as it was in both September and August, currently 1 percent higher than the national average of 5.8 percent. For a several year stretch beginning in 2008, Alaska actually had a lower unemployment rate than the nation as a whole. However, that changed over the past year, when the percentages flipped. Within the state, the highest October unemployment rate on a region-by-region basis belonged to the Wade-Hampton Census Area, at 19.4 percent.

Overall, Alaska is heavily dependent on the weather when it comes to its economic conditions. While many employers see strong numbers in the summer months – only to see the labor market dip in the winter – it appears that unemployment insurance taxes will be favorable year-round in 2015.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment insurance expenses.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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