Employer of Record for 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.

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)

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.
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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.

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.

Employee Tax Contributions

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

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

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.

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:

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.

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.