Last reviewed: July 2026
New Alaska employers need a federal EIN from the IRS and an SUI account with the Alaska Department of Labor and Workforce Development, Employment Security Division. Alaska has no state income tax, so there is no withholding account to open. Most employers also need workers' compensation coverage before the first day on the job. Complete all of it before running your first payroll.
Table of Contents
When you hire your first employee in Alaska, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.
Registration Overview
Here's a checklist of what every new Alaska employer needs:
- ☑ Federal Employer Identification Number (EIN)
- ☑ Alaska SUI account (Alaska Department of Labor and Workforce Development)
- ☑ Workers' compensation insurance
- ☑ New hire reporting setup
- ☑ Payroll system or software
Notice what is missing from that list: state income tax withholding. Alaska has none, so there is no state W-4 equivalent and no withholding account to open.
Step 1: Get Your Federal EIN
Your Employer Identification Number is your federal tax ID. You need it for federal tax filings, state registrations, opening a business bank account, and running payroll.
Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.
Step 2: Confirm Whether You Owe Other Alaska Business Taxes
Because Alaska has no state income tax, most small employers have nothing to register for at the Alaska Department of Revenue, Tax Division. That office administers taxes like mining, fisheries, and fuel taxes rather than payroll withholding. If your business falls into one of those industries, register separately with the Tax Division; otherwise this step does not apply to you.
From the Payroll Desk
Don't wait until your first payroll to register for SUI. Processing can take longer than new employers expect. Start as soon as you know you'll be hiring.
Step 3: Register for SUI
Register for a State Unemployment Insurance account through the Alaska Department of Labor and Workforce Development, Employment Security Division. You'll be assigned:
- An employer account number
- Your initial SUI rate (the 2026 standard new employer rate is 1.50%, though some new employers are assigned an industry-average rate instead)
- Quarterly filing requirements
SUI applies to the first $54,200 of each employee's wages for 2026. Unlike most states, Alaska employees also contribute to SUI (0.50% in 2026), so your payroll system needs to withhold that share as well as remit the employer portion. See our Alaska SUI Rates 2026 guide for details.
Step 4: Workers’ Compensation Insurance
Most Alaska employers are required to carry workers' compensation insurance, which covers employees who are injured on the job. Alaska requires coverage starting with your first employee, with limited exceptions for certain casual or seasonal work.
You can obtain workers' comp through private insurance carriers. Compare quotes from a few carriers to find the best rate for your industry classification, since rates can vary quite a bit between insurers for the same coverage.
Step 5: New Hire Reporting
Alaska law requires you to report every new hire to the Alaska Child Support Services Division's New Hire Reporting Program within 20 days of their start date. This information supports child support enforcement and helps prevent unemployment fraud. Reporting is done online through the myAlaska portal once your account is set up.
See our New Hire Reporting guide for how the federal requirement layers on top of the state one.
Step 6: Set Up Payroll
With registrations complete, the last piece is choosing how you'll actually run payroll. Because there is no state withholding to calculate in Alaska, your system mainly needs to handle federal tax deposits, the SUI employee contribution, and your quarterly state wage report correctly. Our paycheck calculator and W-4 helper are useful for checking federal withholding amounts before your first pay run, and our Form 941 guide covers the quarterly federal filing that follows.
Frequently Asked Questions
How do I register as a new employer in Alaska?
Get a federal EIN from the IRS, then register for an SUI account with the Alaska Department of Labor and Workforce Development, Employment Security Division. Alaska has no state income tax, so there is no withholding account to set up.
When must I register as an employer in Alaska?
Register for your Alaska SUI account before you run your first payroll. You need the employer account number to file your first quarterly wage report and to report new hires within 20 days of their start date.
Do I need workers' compensation in Alaska?
Most Alaska employers must carry workers' compensation insurance from the first employee they hire. Check with the Alaska Department of Labor and Workforce Development, Labor Standards and Safety Division, for exceptions that may apply to your business.
What is an EIN and how do I get one?
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. Apply online at IRS.gov/EIN at no cost, and you'll receive the number immediately.
No State Income Tax Means Federal Filings Plus SUI
Because Alaska has no state income tax, most of your new-employer paperwork here is federal, plus the SUI registration and quarterly reporting covered above. Pacific Data Services has run payroll for small businesses since 1969 and handles Alaska employers remotely, wherever your office actually sits. See how Pacific Data Services supports Alaska payroll.
Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of February 2026 and may not reflect recent changes in federal or Alaska state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Alaska law before making payroll or compliance decisions for your business.