Employer of Record for Alaska

Guide to Hiring Employees in Alaska

Your guide to hiring employees in Alaska, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Alaska through Playroll.

Famous Photo Of Alaska Landmark
Iconic Image Of Alaska

Capital City

Juneau

Timezone

AKST

(

GMT-9

)

Paid Leave

Sick & Voting Leave

Income Tax

Alaska does not impose a state income tax on individuals.

Employer Tax

1.0%- 5.4%

Leave The hiring to a local expert

Hire in Alaska with ease—our experts handle employment and compliance for you.

Enquire Now

How to Hire Employees In Alaska

Hiring in Alaska for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Alaska:

  • Establishing a local entity: Creating a legal entity in Alaska allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Alaska’s labor laws, helping you hire in Alaska without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Alaska’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Alaska has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Alaska.

Complying with Alaska specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Alaska, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Alaska has a relatively small population, leading to a tight-knit labor market where skilled workers are in demand.

Key industries include oil and gas, fishing, tourism, and mining, each with specific labor requirements and regulations.

Alaska mandates daily overtime pay for work exceeding 8 hours, in addition to the standard 40-hour workweek overtime.

Remote locations and harsh weather conditions can impact work schedules and necessitate special considerations for employee safety and logistics.

Key Things to Know About Hiring in Alaska

Employers must follow both federal and state regulations when hiring in Alaska. From tax registration to overtime rules, compliance is critical.

Do I Need an EIN or Payroll Tax Number to Employ in Alaska?

Yes. Employers need a Federal Employer Identification Number (EIN) for payroll reporting and must register with the Alaska Department of Labor and Workforce Development for unemployment insurance contributions. Since Alaska has no state income tax, no state withholding account is required.

Working Hours in Alaska

Alaska generally follows the FLSA 40 working hours a week rule, but state law also requires daily overtime pay after 8 hours in a day (except in certain industries like fishing, agriculture, or transportation).

What Is Considered Full-Time Employment in Alaska?

Alaska law does not define full-time employment. Under the Affordable Care Act (ACA), employees working 30 hours per week or more are considered full-time. Many employers use 40 hours per week as the benchmark for benefits eligibility.

Probation Period in Alaska

Probationary periods are not required by law. Employers often implement a 60–90 day probationary period to assess performance and fit before confirming permanent employment status or benefits.

Labor Laws in Alaska

Alaska combines federal labor standards with state-specific minimum wage and overtime rules. Employers must stay updated on annual adjustments to the minimum wage, unemployment insurance wage base, and anti-discrimination protections.

Minimum Wage in Alaska

As of January 1, 2025, Alaska’s minimum wage is:

  • $11.73 per hour statewide
  • Adjusted annually for inflation using the Consumer Price Index
  • No tip credit is allowed. All employees must earn at least the full minimum wage

Read our Alaska average salary guide for more details.

Alaska Anti-Discrimination Laws

Employees in Alaska are protected against discrimination based on:

  • Race, color, or national origin
  • Religion
  • Sex, pregnancy, sexual orientation, or gender identity
  • Age
  • Disability (physical or mental)
  • Marital status
  • Genetic information

These protections are enforced by the Alaska State Commission for Human Rights and the EEOC.

Overtime in Alaska

Alaska requires stricter overtime rules than federal law. Non-exempt employees must receive 1.5x their regular pay ratefor:

  • Hours worked over 40 in a workweek, or
  • Hours worked over 8 in a single day

Exemptions apply for employees who:

  • Earn at least $43,888 per year in 2025
  • Perform executive, administrative, or professional duties
  • Work in certain exempt industries (fishing, agriculture, transportation)
Famous Alaska Landmark

Onboarding New Hires in Alaska

We can help you get your new employee started in Alaska fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Alaska

While Alaska has no state income tax, employers must manage federal withholdings and higher-than-average state unemployment contributions when carrying out their payroll runs.

Payroll Cycle in Alaska

Employers must pay wages at least semi-monthly unless exempted. Paydays must be consistent and communicated in writing.

Types of Payroll Taxes in Alaska

Alaska’s payroll system is unique because the state does not levy a personal income tax. However, employers must still manage federal payroll taxes and higher state unemployment contributions, which fund Alaska’s unemployment insurance program.

Here’s a quick look at the key payroll taxes you’ll need to manage:

Alaska Unemployment Insurance (SUTA)

Employers contribute between 1.0% and 5.4% on the first $49,700 of each employee’s wages in 2025. Employees also contribute 0.5% on the same wage base, making Alaska one of the few states with employee-funded UI.

Federal Income Tax

Withheld from employee wages according to IRS Form W-4. Withholding depends on employee filing status, income level, and allowances.

Social Security Tax

Employers and employees each pay 6.2% on wages up to $176,100 in 2025. These contributions fund federal Social Security benefits.

Medicare Tax

Both employers and employees contribute 1.45% of all wages, with no wage cap. Employees earning more than $200,000pay an additional 0.9% surtax, which is not matched by employers.

Federal Unemployment Tax (FUTA)

Employers pay 0.6% on the first $7,000 of each employee’s wages, after credits for federal and state unemployment contributions tax. This supports federal unemployment programs.

How to Comply with Alaska Payroll Taxes

Complying with Alaska payroll taxes requires proper registration, withholding, and timely filings. Here’s what compliance looks like:

  • Register with State Agencies: Set up an account with the Alaska Department of Labor for unemployment contributions.
  • Withhold Federal Taxes: Deduct federal income tax, Social Security, and Medicare using IRS tax tables.
  • Pay State Unemployment Insurance (SUTA): Contribute at your assigned rate, up to the $49,700 wage base.
  • Remit Federal Taxes: Match employee FICA contributions and file IRS Form 941 quarterly and Form 940 annually.
  • Deposit on Schedule: Make federal tax deposits via EFTPS and state unemployment contributions quarterly.
  • Maintain Records: Keep payroll and wage records for at least four years.
  • Stay Updated: Monitor annual adjustments to Alaska’s UI wage base and federal wage caps.

Looking to grow your team in Alaska?

Stay Compliant: Navigate Alaska’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Alaska and federal employee benefits for a stronger team.

Book a Demo Default Icon Hover Icon

Alaska Employment Taxes

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Alaska. Understanding the labor laws related to the various tax obligations for both employers and employees is crucial when operating in Alaska's business landscape.

Employer Tax Contributions

Employers are responsible for taxes such as Unemployment Insurance and Workers' Compensation. Rates vary based on factors like industry and wage base.

Employer payroll contributions are generally estimated at an additional 1% to 2% on top of the employee salary in Alaska.

Employment Tax Type Tax Rate
Unemployment Insurance Varies annually
Workers' Compensation Varies by industry

Employee Tax Contributions

Employee tax contributions are generally estimated at approximately 7.65% of employee salary in Alaska.

Employee Payroll Tax Contribution Tax Rate
Federal Social Security and Medicare 7.65%

Tax Due Dates in Alaska

  • Quarterly Filings: April 30, July 31, October 31, January 31
  • Annual FUTA Filing (Form 940): January 31
  • State UI Contributions: Quarterly via the Alaska Department of Labor
Info Icon

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Alaska tailored to your needs.

CTA Image showing employees in various countries across the globe
Employee Cost Calculator

Get an instant breakdown of the true costs of hiring in Alaska.

Calculate Now Default Icon Hover Icon

Benefit Requirements for Employers in Alaska

Alaska mandates certain benefits, including Unemployment Insurance and Workers' Compensation. While there's no state income tax, employers often provide additional benefits to attract talent. Offering comprehensive employee benefits can enhance recruitment and retention.

Employee Benefits for Alaska

Competitive benefits are essential for attracting and retaining top talent in Alaska. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Alaska packages include:

  • Pension or 401(K)
  • Vision Insurance
  • Life Insurance
  • Medical Insurance
  • Dental Insurance
  • Health Savings Plan (HSA)
  • Flexible Spending Account (FSA

Are Employers Required to Provide Health Insurance in Alaska?

Yes. Employers with 50+ full-time equivalent employees must provide health insurance under the ACA. Smaller employers are not required but often choose to.

Are Employers Required to Offer 401(k) in Alaska?

No, employers are not mandated to offer 401(k) in Alaska, but many choose to provide retirement plans to compete in the competitive labor market.

Paid and Unpaid Leave Policies in Alaska

Leave policies are guided mainly by federal law, with some state-specific protections. Clear policies help employers stay compliant and competitive.

Is Vacation Leave Mandatory in Alaska?

No. Employers are not required to provide vacation leave, but if they do, policies must be documented and applied consistently.

Mandatory Leave Policies in Alaska

Below is an overview of the key mandatory leave policies in Alaska:

Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
FMLA Leave Up to 12 weeks Yes (federal) Unpaid Employers with 50+ employees; employee must meet FMLA requirements
Jury Duty Duration of service Yes Unpaid All employees summoned to serve
Military Leave (USERRA) Length of service/training Yes Unpaid (benefits continuation possible) All employees called to active duty
Voting Leave Up to 2 hours Yes Paid Employees who lack time to vote outside work hours

Paid Time Off (PTO)

Alaska law does not require employers to provide paid time off. However, many employers choose to combine vacation, sick leave, and personal days into a single PTO policy to remain competitive and simplify administration.

Maternity Leave

There is no state mandate for paid maternity leave in Alaska. Eligible employees may take up to 12 weeks of unpaid, job-protected leave under the FMLA for pregnancy, childbirth, and recovery.

Paternity Leave

Paternity leave is not specifically required under Alaska law. Fathers may use FMLA leave or any available PTO provided by the employer to care for and bond with a new child.

Paid Sick Leave

Paid sick leave is not mandated in Alaska for private employers. If offered, sick leave policies must be applied consistently across the workforce and clearly documented in the employee handbook.

Military Leave

Employees who are called to military service are protected under the USERRA. Returning employees must be reinstated to their previous or a comparable position with the same pay, benefits, and seniority.

Jury Duty

Employers in Alaska must provide unpaid leave for employees serving on a jury. Employees cannot be penalized, disciplined, or terminated for fulfilling their jury duty obligations.

Parental Leave

Alaska does not have a separate parental leave law beyond the federal FMLA. Eligible employees may take up to 12 weeks of unpaid, job-protected leave for bonding following the birth, adoption, or foster placement of a child.

Bereavement Leave

There is no requirement under Alaska law for employers to provide bereavement leave. Many employers voluntarily offer 3–5 days of paid or unpaid leave following the death of a close family member.

Voting Leave

Employers in Alaska must provide up to two hours of paid leave for employees to vote if they do not have sufficient time outside working hours. Employers cannot deduct wages or take disciplinary action against employees for using this leave.

School Leave

Alaska does not mandate leave for school-related activities such as parent-teacher conferences. Some employers voluntarily provide flexibility or unpaid leave to allow parents to participate in their children’s school events.

It’s Easy To Manage Benefits For Employees In Alaska With Playroll

Employment Termination Protocols in Alaska

Employment in Alaska is at-will, but employers must still meet wage payment and benefit obligations at termination.

Termination Process in Alaska

  • Final Pay: Due within 3 working days if terminated by employer, or next payday if employee resigns.
  • Unused Vacation: Paid out if promised under policy or contract.
  • Health Coverage: COBRA applies for employers with 20+ employees.

Notice Period in Alaska

There is no legal requirement for a notice period in Alaska. Notice is only required if specified in an employment contract or collective bargaining agreement.

Severance in Alaska

Severance is not legally required under Alaska law, but employers may provide severance voluntarily forms of severance through tailored contracts or policies.

Hiring Employees in Alaska with an employer of record

An Employer of Record makes it easy to hire in Alaska if you don’t have your own entity set up, by handling the heavy-lifting for you. They take care of compliant employment contracts, all required taxes, and benefits administration for you, so you can focus on growth instead

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Alaska's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Alaska's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Alaska's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Alaska's labor laws, such as health insurance, pension contributions, and statutory leave.

Back to Top

Copied to Clipboard

Woman with glasses
Woman with glasses

Take your business to new places

Employer of Record for Alaska

  • hire icon Hire employees without entity setup.
  • handshake icon Full compliance, we assume 100% liability.
  • gift icon Handle local payroll and benefits seamlessly.
  • headphones icon 24/5 responsive real-human support.
  • money icon Transparent pricing, no hidden fees.

Hiring Employees in Alaska FAQs

How do I submit payroll taxes in Alaska?

Employers in Alaska must register with the Alaska Department of Labor and Workforce Development to submit payroll taxes. This includes filing quarterly reports and remitting Unemployment Insurance contributions. Additionally, employers are required to withhold federal taxes and submit them to the IRS.

Is there a minimum wage requirement for employees in Alaska?

As of January 1, 2025, Alaska’s minimum wage is:

  • $11.73 per hour statewide
  • Adjusted annually for inflation using the Consumer Price Index
  • No tip credit is allowed. All employees must earn at least the full minimum wage

What is considered full-time employment in Alaska?

Alaska law does not define full-time. Under the ACA, 30 hours per week qualifies as full-time, though many employers use 40 hours per week.

How does an Employer of Record help you hire in Alaska?

An EOR like Playroll manages contracts, payroll, benefits, and compliance, allowing businesses to expand into Alaska quickly without setting up an entity.

Playroll makes growing your team in Alaska effortless. Ready to start?

The HR Platform built to scale your global team.