These reports were filed with the ESD without payment of the taxes due. The ESD brought an action against Big Eddies and Oakes to recover the delinquent contributions, plus interest and penalties under the Alaska Employment Security Act. After the superior court affirmed, ESD filed a petition for hearing, which we granted. Under the Alaska Employment Security Act, AS 23.20., employers are required to pay the State of Alaska employment security contributions based on the wages paid to their employees. Employees pay a portion of the contributions through withholdings that are taken from their wages by their employers.
Employers also pay a portion of the contributions.
Employers are required to make quarterly contributions to the ESD and file quarterly contribution reports. 8 Alaska Administrative Code 85.030. An employer who is liable shall pay the cost of the collection, including collection fees charged and the costs of legal action. . . . By their plain language, these subsections hold corporate officers and employees personally liable for the entire contribution due so long as their responsibilities include making certain that the taxes are paid by the corporation. Contrary to the district court's interpretation in Big Eddies, AS 23.20.240 contains no language from which it could reasonably be inferred that the ESD may only collect the employee portion of the tax from corporate officers or employees.