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Employer's Payroll Tax & Filing Requirements for the State of Alaska (AK)
Managing payroll in Alaska is unique because it is one of the few states with no state-level income tax. However, employers must still comply with state unemployment insurance laws, a minimum wage rate higher than the federal standard, and specific overtime rules. This guide covers the essential payroll requirements to ensure your business remains compliant in the
Last Frontier.
Applicable Alaska Taxes
In Alaska, employers are responsible for a few key state and federal payroll taxes. Here’s a quick overview of the taxes in Alaska.
- While Alaska does not have a state income tax, businesses must still manage the Unemployment Tax.
-
At the federal level, employers are required to withhold and pay Federal Income Tax, Social Security, and Medicare
(FICA) taxes. - Employers are also responsible for the Federal Unemployment Tax (FUTA).
Understanding these obligations is essential for maintaining compliance and avoiding penalties.
Registering for Alaska State Unemployment Insurance
If you run a business in Alaska and become liable under the Alaska Unemployment Compensation Act, you must register with the Alaska Department of Labor and Workforce Development (DOLWD) within 10 days of becoming liable.
Steps to Register with the Alaska Department of Labor and Workforce Development (DOLWD)
1. Register via Online
-
Step 1: Create or log in to a myAlaska account.
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Step 2: Go to Services → Employment Security Tax → Employer Maintenance → New Registration.
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Step 3: Complete the online form (Form TREG or the equivalent) with details like legal business name, FEIN, payroll start date, and contact information.
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Step 4: You’ll typically receive an 8-digit Employer Account Number and your assigned UI tax rate within 5–7 days via mail.
2. Register by mail
Download and complete the Alaska Employer Registration Form (TREG) with business details, FEIN, payroll date, and responsible parties. Mail to:
DOLWD Employment Security Tax Office
P.O. Box 115509, Juneau, AK 99811-5509.
3. Fax
You can fax this to (907) 465-2374.
Alaska New Hire Reporting
Alaska New Hire Reporting helps the state track new workers so it can collect child support, prevent unemployment or workers' compensation fraud, and ensure public benefits are paid correctly.
Who needs to report?
All employers, government agencies, and labor organizations operating in Alaska must report the newly hired or rehired employees to the respective agencies within 20 days of the employee’s hire or rehire date.
What information must be reported?
To complete the new hire report, you’ll need the following information:
Employer details:
- Business name/Employer’s name
- Address
- Federal Employer Identification Number (FEIN)
Employee details:
- Employee’s name
- Address
- Social Security Number (SSN)
- Date of hire
How to report new hires in Alaska?
You can report new hires to the Alaska New Hire Reporting Center in the following ways:
1. Online (Recommended)
Visit the MyAlaska account to complete the report.
2. Mail
You can complete the Alaska new hire report and mail it to:
Child Support Division
550 W 7th Ave ste 310
Anchorage AK 99501-6699
3. Fax
You can also fax the completed new hire report to (907) 787-3197.
What are the penalties for not filing a New hire report in Alaska?
If an employer in Florida fails to submit a New Hire report, they may face the following penalties:
- $20 per person for each new hire, rehire, or independent contractor that is not reported, reported late, or reported with incomplete information.
- $500 per person if the failure to report is due to a conspiracy between the employer and the employee or contractor to avoid reporting.
Alaska State Payroll Tax Requirements
Alaska is one of the few states that does not have a state income tax, which simplifies payroll administration for employers. However, businesses must still comply with other state-specific requirements, including unemployment tax (SUTA), workers’ compensation rules (if applicable). This section outlines the key state tax and reporting obligations that every Alaska employer must follow to stay in compliance.
Alaska State Income Tax
Alaska is one of the states that does not impose state income tax, which means employers are not required to withhold state income tax from employee paychecks. This makes payroll processing simpler compared to many other states.
Alaska State Unemployment Tax
Employers in Alaska must pay State Unemployment Insurance (SUI) taxes to support the state’s unemployment benefit program. The following table outlines the applicable SUI tax rates in Alaska:
Who is liable?
Alaska employers are liable for SUI taxes if they meet the following conditions: if
- All employers who pay $1,500 or more in wages in a calendar quarter or employ one or more workers for 20 different weeks in a year.
- Both employers and employees pay contributions.
Alaska State Unemployment Tax Rate
Employers in Alaska must pay State Unemployment Insurance (SUI) taxes to support the state’s unemployment benefit program. The following table outlines the applicable SUI tax rates in Alaska:
| Alaska State Unemployment Tax Rate | |
|---|---|
| Taxable Wage Base | $51,700 |
| Tax Rate Range | 1.00% - 5.40% |
| New Employer Rate | 1.50% |
Alaska Minimum Wage Requirements
Alaska is the state that sets its own minimum wage rate, which is higher than the federal rate and adjusts annually based on inflation. Make sure all the employers meet the current minimum wage rate for all employees.
| Wage | Alaska Tax Rate (per hour) | Federal Rates (per hour) |
|---|---|---|
| Minimum wage | $13.00 | $7.25 |
| Tipped Minimum Wage | - | $2.13 |
| Actual Tip Credit | - | $5.12 |
Overtime Regulations
Alaska follows the federal Fair Labor Standards Act (FLSA) for overtime pay. Under the FLSA, employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. Here is the Alaska overtime law:
- Daily limit: An employee may not be required to work more than 8 hours in a day without overtime pay.
- Weekly limit: An employee may not be required to work more than 40 hours in a week without overtime pay.
- Overtime rate: Any hours worked beyond either limit (whichever gives the employee more pay) must be paid at 1.5 times the employee’s regular rate of pay.
Who qualifies for overtime payment?
Not all employees in Alaska are eligible for overtime. In general, non-exempt employees—those who earn less than $684 per week on a salaried basis or who do not meet specific job duty requirements—must receive overtime pay for any hours worked beyond 40 in a workweek.
- Hourly workers are typically non-exempt and automatically qualify.
- Tipped employees (such as restaurant servers) are also entitled to overtime. Their overtime rate must be calculated based on Alaska's minimum wage (which matches the federal rate), not just their cash wage, and must reflect time-and-a-half after 40 hours.
Exemption:
Certain employees are exempt from overtime if they meet both the salary and duties tests outlined by the FLSA. In Alaska, this generally includes:
- Executive, administrative, or professional employees who meet the duties and salary tests.
- Outside sales employees.
- Certain transportation workers (like truck drivers under DOT rules).
- Seasonal or small-scale agricultural/fishing workers (in some cases).
Alaska Termination Reports
Alaska does not have a mandatory, standalone termination report for all separations. Termination information is generally reported only when requested by the Alaska Department of Labor and Workforce Development (DOLWD), such as when an unemployment insurance (UI) claim is filed.
Alaska State Tax Payments
In Alaska, employers must submit State Unemployment Insurance (SUI) tax payments, also called Unemployment Tax, to the Alaska Department of Labor and Workforce Development (DOL) on a quarterly basis.
Quarterly filers – Payments are due by the last day of the month following the end of each calendar quarter:
| Quarter | Filing Deadline |
|---|---|
| Quarter 1 (January - March) | April 30 |
| Quarter 2 (April - June) | July 31 |
| Quarter 3 (July - September) | October 31 |
| Quarter 4 (October - December) | January 31 |
Methods to deposit SUI taxes
To pay your Alaska Unemployment taxes, follow any one of the given methods:
1. Pay Online
Log in to myAlaska, select Employment Security Tax → Pay Taxes, and pay via Electronic Funds Transfer (EFT).
2. Pay By Mail
Send a check payable to Alaska Department of Labor & Workforce Development, including your Employer Account Number. Mail to:
Alaska Department of Labor & Workforce Development
Employment Security Tax
P.O. Box 115509
Juneau, AK 99811-5506
Penalties:
If an employer fails to pay or deposit SUI taxes on time in Alaska, the Department of Labor and Workforce Development (DOLWD) can impose the following penalties:
- A 5% penalty is applied to the unpaid SUI tax if your payment is late by 1 to 30 days.
- A 10% penalty is applied to the unpaid SUI tax if your payment is more than 30 days late.
Alaska State Tax Filings
Alaska employers must file quarterly unemployment tax reports Form TQ01C (Quarterly Contribution Report) and make timely SUI payments to the Alaska Department of Labor and Workforce Development.
Quarterly State Unemployment Filings
Form TQ01C (Quarterly Contribution Report): Employers must use Form TQ01C to report employee wages and calculate State Unemployment Insurance (SUI) contributions for each quarter.
Due Dates for Quarterly Filings
Unemployment insurance tax report and payments are due by the last day of the month following the end of the calendar quarter. If any of the due dates fall on a weekend or holiday, the following business day will be considered as the due date.
| Quarter | Filing Deadline |
|---|---|
| Quarter 1 (January - March) | April 30 |
| Quarter 2 (April - June) | July 31 |
| Quarter 3 (July - September) | October 31 |
| Quarter 4 (October - December) | January 31 |
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