ALASKA W-2

[Edward]

Help on W-2 for Alaska company: Have W-2 with box 14 showing: AK ESC 150.00 AND HI PREM 2000. Am looking for what these stand for and whether or not they affect the 1040. Will appreciate any assistance. Thanks - Eddward

[Peggy Cobb]

I would question yoru client. I don't recognize those intials. In Alaska they have a withholding tax for unemployment that is paid to the Alaska Labor and Workforce Development Department. Workmen's compensation is paid via the employer obtaining private insurance coverage.

If the employee lived in Alaska long enough he may have received the Alaska Permanent Fund distribtution. Ask your client if he did. It goes on line 21 and in ATX you can bunny hop to the worksheet and put it in there. Last year my Alaska clients each received $1,654

Alaska has a number of employers that only work during the tourist season in the towns that are visited by the cruise ships. Many of these employers will paid Per Diem because of the seasonal nature of the job and the employee's tax home in not in Alaska. The intials may be related to this Per Diem. Let me know if you need help with these rates, they are found on the DOD/pentagon website.

[Edward]

I would question yoru client. I don't recognize those intials. In Alaska they have a withholding tax for unemployment that is paid to the Alaska Labor and Workforce Development Department. Workmen's compensation is paid via the employer obtaining private insurance coverage.

If the employee lived in Alaska long enough he may have received the Alaska Permanent Fund distribtution. Ask your client if he did. It goes on line 21 and in ATX you can bunny hop to the worksheet and put it in there. Last year my Alaska clients each received $1,654

Alaska has a number of employers that only work during the tourist season in the towns that are visited by the cruise ships. Many of these employers will paid Per Diem because of the seasonal nature of the job and the employee's tax home in not in Alaska. The intials may be related to this Per Diem. Let me know if you need help with these rates, they are found on the DOD/pentagon website.

[Edward]

Peggy

Thanks for your response. I didn't provide all necessary information. The taxpayer works for two different companies located in Anchorage AK and performs the work here in the U.S.. He does no work in AK but they

pay him. Both W-2's have IN BOX 14: AK ESC AND HI PREM amounts. Sorry I didn't include this in my original

post. Thanks for any further advice. Edward...

[Peggy Cobb]

Alaska residents often earn a significant more per hour and those of us in the continental US. This is because the cost of living in Alaska is so much higher (just about everything is shipped in). These maybe funds his employer paid him based on Alaska's higher wage standards. I would ask your client about his payment structure from these companies. The AK ESC sounds like the Labor and Workforce Development deduction which is the state's unemployment tax, but the intials not match what I have seen in the past.

Let me know,

Peggy

Peggy

Thanks for your response. I didn't provide all necessary information. The taxpayer works for two different companies located in Anchorage AK and performs the work here in the U.S.. He does no work in AK but they

pay him. Both W-2's have IN BOX 14: AK ESC AND HI PREM amounts. Sorry I didn't include this in my original

post. Thanks for any further advice. Edward...

[lbbwest]

Peggy

Thanks for your response. I didn't provide all necessary information. The taxpayer works for two different companies located in Anchorage AK and performs the work here in the U.S.. He does no work in AK but they

pay him. Both W-2's have IN BOX 14: AK ESC AND HI PREM amounts. Sorry I didn't include this in my original

post. Thanks for any further advice. Edward...

My geography is rusty, but isn't Alaska considered in the US? lbb

[Edward]

FOR PEGGY:

The initials AK ESC IN BOX 14 of the W-2 represents State Unemployment Tax withheld from P/R. First time

I had ever heard of that - especially since he is working mostly in South Carolina and not Alaska. The other

abbreviation was HI PREM which amounted to 2400.00 deducted from P/R for health insurance. I suspect I

need to prepare form 8889 (HSA) for this item. The Company paid $24,903. for the family insurance, plus

the 2400.00 deducted from P/R equals $27,303.00 for the year for health insurance?? Something unusual

here?