Governor Sean Parnell today thanked the Legislature for passing House Bill 76, the governor's legislation to allow for the suspension of automatic payroll tax increases when the Unemployment Insurance (UI) Trust Fund is deemed solvent. Currently, the law requires tax collections, including increases, from employers and employees, even if the UI Trust Fund is solvent.
"Anytime the State can take less from Alaskans' hard-earned paychecks, it should," Governor Parnell said. "I thank the Legislature for passing House Bill 76 and also for their commitment to lowering Alaskans' tax burden. When the federal government raised payroll taxes in January, American workers and businesses saw less in their paychecks. With the passage of this legislation, Alaska is leading the way and ensuring our workers and employers aren't overtaxed. There is little doubt that Alaska's economy will benefit as a result."
House Bill 76 also includes important provisions to ensure Alaskan employers don't pay more in federal taxes for unemployment purposes. As of March 15, the Alaska Unemployment Insurance Trust Fund had a balance of $257 million and is solvent.