Payroll and Benefits Guide United States – Alaska
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 1.0% – 5.4% | State Unemployment Insurance (SUI), applied on the first 51,700 USD of each employee’s wages.Rates are determined based on the employer’s experience rating and the applicable tax schedule. |
| 1.0% | State Unemployment Insurance – New Employer, applied on the first 51,700 USD of each employee’s wages. |
| 6.20% | Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year. |
| 1.45% | Federal Insurance Contributions Act (FICA) – Medicare. |
| 0.60% – 6.00% | Federal Unemployment Tax Act (FUTA), applied on salary up to 7,000 USD per year.Employers who pay their state unemployment tax in full and on time are eligible for a 5.4% tax credit, reducing the FUTA rate to 0.6%. |
| 9.25% – 13.45% |
Total Employment Cost
|
| Employee Payroll Contributions | |
|
0.50%
|
State Unemployment Insurance (SUI), applied on the first 51,700 USD of each employee’s wages. |
| 6.20% | Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year. |
| 1.45% | Federal Insurance Contributions Act (FICA) – Medicare.An additional 0.9% should be withheld from employees earning above 200,000 USD per year. |
|
8.15% – 9.06%
|
Total Employee Cost
|
| State Employee Income Tax | |
| Alaska does not impose any State income tax. | |
| Federal Employee Income Tax | Annual |
| Federal Tax – Singles | |
| 10.00% | Up to 11,925 USD |
| 12.00% | 11,925 – 48,475 USD |
| 22.00% | 448,475 – 103,350 USD |
| 24.00% | 103,350 – 197,300 USD |
| 32.00% | 197,300 – 250,525 USD |
| 35.00% | 250,525 – 626,350 USD |
| 37.00% | Above 626,350 USD |
| Federal Tax – Married – Joint Filing | |
| 10.00% | Up to 23,850 USD |
| 12.00% | 23,850 – 96,950 USD |
| 22.00% | 96,950 – 206,700 USD |
| 24.00% | 206,700 – 394,600 USD |
| 32.00% | 394,600 – 501,050 USD |
| 35.00% | 501,050 – 751,600 USD |
| 37.00% | Above 751,600 USD |
| Federal Tax – Heads of Household | |
| 10.00% | Up to 17,000 USD |
| 12.00% | 17,000 – 64,850 USD |
| 22.00% | 64,850 – 103,350 USD |
| 24.00% | 103,350 – 197,300 USD |
| 32.00% | 197,300 – 250,500 USD |
| 35.00% | 250,500 – 626,350 USD |
| 37.00% | Above 626,350 USD |
| Standard Deduction and Personal Exemption | |
| 15,000 USD | Single |
| 30,000 USD | Married Filing Jointly |
| 22,500 USD | Head of Household |
Minimum Wage
General
The state minimum wage is 11.73 USD per hour. The minimum wage will increase to 13.00 USD on July 1, 2025.
The Federal minimum wage rate is 7.25 USD per hour.
Payroll
Payroll Cycle
Employees in Alaska are paid semi-monthly or monthly, with payments on dates stipulated in the employee contract.
13th Salary
There are no provisions in the law regarding 13th salaries.
Working Hours
General
In Alaska, the workweek is a maximum of 40 hours per week or 8 hours per day.
Employers are required to provide break periods of at least 30 minutes for minors between the ages of 14 to 17 who work 5 or more consecutive hours and continue to work.
Employers are not required to give breaks for employees 18 and over. Breaks over 20 minutes are unpaid, while breaks under 20 minutes are paid. This does not apply to meal or lunch breaks.
Overtime
Employers can make overtime mandatory for employees, except for certain minors.
The federal Fair Labor Standards Act (FLSA) stipulates that if an employee works more than 40 hours in a working week, the employer must pay 150% of the regular salary rate for the extra hours worked as overtime.
Leave
Annual Leave (vacation)
Alaska does not have any state laws that govern paid time off. However, it is common for employers to decide whether to offer paid or unpaid vacation leave.
This must comply with employment law and must be stipulated in the collective bargaining agreements.
Public Holidays
Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.
Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.
Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 19 January 2026 | Monday | Martin Luther King Jr.’s Birthday | Standard holiday |
| 16 February 2026 | Monday | Presidents’ Day (Washington’s Birthday) | Standard holiday |
| 30 March 2026 | Monday | Seward’s Day | Standard holiday |
| 25 May 2026 | Monday | Memorial Day | Standard holiday |
| 19 June 2026 | Friday | Juneteenth Day (Juneteenth National Independence Day) | Standard holiday |
| 3 July 2026 | Friday | Independence Day | Standard holiday |
| 7 September 2026 | Monday | Labor Day | Standard holiday |
| 18 October 2026 | Sunday | Alaska Day | Standard holiday |
| 19 October 2026 | Monday | Alaska Day (Observed) | Standard holiday |
| 11 November 2026 | Wednesday | Veterans Day | Standard holiday |
| 26 November 2026 | Thursday | Thanksgiving Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).
Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.
FMLA eligible employees are entitled to:
- 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
- Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
- Care for the employee’s spouse, child, or parent who has a severe health condition.
- Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
- Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”
Or
- 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).
In addition to the FMLA and the Pregnancy Discrimination Act, Alaska has laws regarding maternity and paternity leave.
Employers with more than 25 employees are required to provide up to 6 weeks of maternity leave for employees who do not have pregnancy-related complications or disabilities.
Employers are also required to provide up to 4 months for employees with disabilities related to pregnancy, childbirth, or other related conditions.
Maternity Leave
Alaska does not mandate paid maternity leave; pregnancy is protected under anti-discrimination law.
Paternity Leave
Paternity leave falls under the FMLA (see Sick Leave).
Parental Leave
Parental leave falls under the FMLA (see Sick Leave).
Other Leave
- Jury Duty: Alaska law requires employers (with 5 or more employees) to provide their full-time employees with job-protected paid time off from work to perform jury duty. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
- Voting Leave: Employees who are registered to vote must be allowed to take necessary time off from work, up to three hours of unpaid leave, to vote in any municipal, county, state, federal primary, or general election. Employees must provide reasonable notice to their employers to take time off to vote before noon on the day before the election. Leave is paid if it occurs during the employee’s regular working hours. Employers must provide unpaid leave for employees who are serving as part-time voting machine technicians.
- In addition to the federal law USERRA, Alaska law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the public health service, and any other category of persons designated by the president in a time of war or emergency. Upon an employee’s return from leave, reemployment in a former or a similar position regarding seniority, status, pay, and other employment benefits may be made available by the employer.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.
” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).
Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.
” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).
Notice Period
In Alaska, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Alaska, payout of unused vacation time is not required by law.
However, employers will generally pay an employee for unused vacation days, provided the employee gives some advanced notice of resignation.
In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.
Severance Pay
Except as otherwise provided in an employment contract or collective bargaining agreement, employers are not required to pay severance.
Many employers choose to offer severance based on the employee’s length of employment.
If the employer terminates the contract, the final payment must be made to the employee within three working days after termination.
Whereas if the employee terminates the contract, the employer will make the final payment according to the employees’ contract, usually the next regular payday.
Minimal Statutory Termination Costs
Some states require PTO balances to be paid out during termination, also any bonuses or commissions that were promised in the employment contract
Immigration
Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.
An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee
If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).
To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:
- H-1B – for applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
- H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
- H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
- H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
- L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
- 0 – for people with extraordinary ability in science, arts, education, business, or athletics.
The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.
For those seeking employment-based immigrant visas:
- E-1 – highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
- E-2 – for those with advanced degrees or exceptional ability.
- E-3 – for skilled workers and professionals, as well as unskilled workers.
- E-4 – members of certain immigrant groups.
- E-5 – immigrant investors in US companies (substantial investment)
Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States.
The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.
All employers are obligated to verify that all individuals they employ are authorized to work in the United States.
VAT
General
Alaska has no State sales tax but local municipalities can impose their own sales taxes up to 7.5%.
Stay up to date on payroll & employment law changes
Version History
See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws
Payroll and Benefits Guide
in United States – Alaska
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 19 January 2026 | Monday | Martin Luther King Jr.’s Birthday | Standard holiday |
| 16 February 2026 | Monday | Presidents’ Day (Washington’s Birthday) | Standard holiday |
| 30 March 2026 | Monday | Seward’s Day | Standard holiday |
| 25 May 2026 | Monday | Memorial Day | Standard holiday |
| 19 June 2026 | Friday | Juneteenth Day (Juneteenth National Independence Day) | Standard holiday |
| 3 July 2026 | Friday | Independence Day | Standard holiday |
| 7 September 2026 | Monday | Labor Day | Standard holiday |
| 18 October 2026 | Sunday | Alaska Day | Standard holiday |
| 19 October 2026 | Monday | Alaska Day (Observed) | Standard holiday |
| 11 November 2026 | Wednesday | Veterans Day | Standard holiday |
| 26 November 2026 | Thursday | Thanksgiving Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Questions & Answers