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Taxes
Alaska Payroll Taxes 2026: Complete Overview for Employers
No state income tax, but SUI on $49,700 and federal obligations still apply.
Practical, accurate resources for Alaska small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
No state income tax, but SUI on $49,700 and federal obligations still apply.
How to register with Alaska Department of Revenue and Alaska Department of Labor and Workforce Development as a new Alaska employer.
New employer rate 1.99%, experienced range 1.00%–5.40%, wage base $49,700.
Alaska minimum wage is $11.73/hr. Alaska’s minimum wage is $11.73/hr with annual inflation adjustments. No tip credit is allowed — tipped employees must receive the full minimum wage.
Semi-monthly pay required. Final pay: Final wages must be paid within 3 working days after termination..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Alaska-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Alaska new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Alaska recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Alaska small businesses.
Federal OT after 40 hrs/week, Alaska overtime rules, exemptions, salary thresholds.