Opinion ID: 1190943
Heading Depth: 3
Heading Rank: 3

Heading: the board used the wrong social security tax deduction when it calculated conlon's spendable weekly wage.

Text: Pioneer argues that the Board, in relying on the Alaska Workers' Compensation Manual's Compensation Rate Tables, incorrectly computed Conlon's compensation rate. As Pioneer points out the rate tables utilize the 7.5% social security tax deduction for non-self-employed workers, which is inappropriate here because most of Conlon's income was derived from self-employment. It concludes that AS 23.30.220, AS 23.30.265(15), (16) and (22) compel the Board to utilize the higher self-employed social security tax rate for cases involving self-employed claimants. Conlon responds that this issue was not properly preserved for appeal, arguing that Pioneer did not raise this issue until it filed its opening brief in the superior court. Although we generally do not review a claim of error if it is not properly presented to this court, we will review it if it constitutes plain error. See In re L.A.M., 727 P.2d 1057, 1059 (Alaska 1986). Plain error is an error so substantial as to result in an injustice. Merrill v. Faltin, 430 P.2d 913, 917 (Alaska 1967). We conclude that the Board's error here resulted in an injustice. AS 23.30.220(a) defines spendable weekly wage as the gross weekly earnings minus payroll tax deductions. Payroll tax deductions include amounts that ... would be ... withheld as of the January 1 preceding the injury under the Social Security Act of 1935 as amended. AS 23.30.265(23)(B). For self-employment the rate as of January 1, 1986 was 11.4%. 26 U.S.C. § 1401(a). Clearly, most of Conlon's income was derived from self-employment and that rate should have been used to compute his compensation rate. Thus, the Board's reliance on the wrong social security tax rate was so substantial as to result in an injustice. Merrill, 430 P.2d at 917.