AK HB215

Amends AS 23.20.290(c) to replace fixed minimum and maximum unemployment insurance contribution rates with a variable minimum tax rate based on each employer's rate class as specified in Column D of the rate table.

Removes the previous requirement that employer contribution rates be no less than one percent and no more than six and one-half percent, and eliminates the special 5.4 percent minimum for rate class 21 employers.

Establishes a new rate table with 21 rate classes based on cumulative ratable payroll percentages, with minimum tax rates ranging from 0.40 percent to 5.40 percent depending on the employer's classification.

Requires employer contribution rates to be rounded to the nearest 1/100th of one percent.

Takes effect January 1, 2021.