I received a notice saying my contribution
report and wage schedule were "out of balance." What does
The most common cause of an "out of balance" condition
is the failure to make sure that the individual wage amounts for
each employee listed on the wage schedule really do add up to
equal the Total Wages amount on line 2 of the Alaska Quarterly
Contribution Report form. Once all the wage items are entered
into the computer, they are added and compared to the total wages
amount reported from line 2. If the amount doesn't match - you
get a notice in the mail.
Sometimes the employer simply makes an addition error. Sometimes
the employer includes people in the wage schedule who should not
be taxed, and later subtracts those wage amounts without removing
the same wage items from the wage schedule.
Sometimes, we made a mistake keying either the total wage amount
or one or more of the wage items from the wages schedule. The
keying practices we employ are designed to minimize this, but
out of the 300,000 wage items keyed each quarter, it can happen.
Now what? Check the sum of the wages listed for each employee
and the amount entered on line 2 of your quarterly report. If
they do not match, make the necessary corrections, and return
the form with the corrections, as requested. If you find that
virtually all the employees are affected (example: you reported
taxable wages for each employee rather than total wages) it is
likely better to file an amended report.
If it is our keying error - or if you have other questions about
correcting an "out-of-balance" please contact your nearest
Employment Security Tax representative.
We will do our best to fix the problem as quickly as possible.