Alaska Wage and Payroll Tax Facts
February 01, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Alaska.
Alaska uses a moderately higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). However, The Last Frontier doesn't allow for tip credits or tipped minimum wage rates based on such credits.
When it comes to processing payroll, Alaska-based organizations must handle the following taxes in addition to those required by the federal government:
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
Alaska Minimum Wage Rates
|
Wage Type |
Alaska Rates |
Federal Rates |
|
Minimum Wage |
$11.73 |
$7.25 |
|
Tipped Minimum Wage |
N/A |
$2.13 |
|
Actual Tip Credit |
N/A |
$5.12 |
Alaska State Income Tax (SIT) Rates
Alaska is one of the few states that doesn't impose or collect a personal income tax.
Alaska State Unemployment Insurance (SUI) Rates
Alaska's SUI tax (a.k.a., Employment Security Tax) provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Alaska SUI Tax Details |
|
|
Taxable Wage Base |
$49,700 |
|
Employee Subject to Tax |
Yes; a 0.50% tax on wages up to the taxable wage base |
|
Rates for Experienced Employers |
1.00% - 5.40% |
|
Rates for New Employers |
1.66%
|
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
No |
Alaska State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Alaska, however, doesn't require employers to collect an SDI tax.
Miscellaneous Alaska Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Alaska currently has no reciprocal agreements with any other states.
This doesn’t mean, however, that interstate workers living in Alaska pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of Alaska doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of Alaska doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Alaska Employer Registration
The Department of Labor and Workforce Development can help with your state-based employer registration, including best practices, account numbers, and unemployment information.
|
Registration Details |
Department of Labor & Workforce Development |
|
Phone |
(907) 465-2757 |
|
Online Registration |
MyAlaska Registration Page |
| Registration Form | Form TREG |
|
Registration Instructions |
Online and paper registration options are available. Account numbers will be issued in 5 days. |
|
Employer Self-Service Login |
MyAlaska Login Page |
Additional Alaska Payroll Tax Resources
- Alaska's Business Homepage
- Department of Labor and Workforce Development Employers Page
- Employment Security Tax Employer Packet
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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