Per Alaska Statute 23.20.530(b)(1) ALL payments by an employee for retirement or health plans must be excluded from reportable earnings for state unemployment tax. ROTH and post-tax supplemental plan premiums are treated like Section 125 plans for Alaska SUI. We need a tax rule exclusively for Alaska to exclude those post-tax deductions for the State only. Not having this rule creates a reporting nightmare as we have to manually calculate and override outside the system. Including ROTH and post-tax premiums as reportable/taxable wages is NOT an option per the State of Alaska Department of Labor. Not having this tax rule creates an audit hazard to payroll processors using Sage.
by: Lisa H. | over a year ago | Payroll / Job Cost
Comments
Lisa
Please contact customer support to review the tax rules assigned to your earnings and deductions.
You can also run Tax Run Inquiry to determine if a deduction will reduce specific earnings. For information on how to use this utility, see Knowledgebase Article ID 95959 - How to use Payroll Tax Rule Inquiry.