Key figures
Alaska payroll
2026, with sources
Unemployment insurance, split two ways
Alaska is one of the few states where employees contribute to unemployment insurance. In 2026 the employee rate is 0.50% and new employers in every industry pay 1.00%, both on the first $54,200 of each employee’s wages. There is no state income tax withholding and no paid leave premium.
Example: a startup hires an engineer in Fairbanks at $150,000. It withholds $271 of employee UI over the year (0.50% of $54,200), pays $542 of employer UI (1.00%), withholds no state income tax, and needs workers’ compensation coverage for the new employee.
Wage-and-hour
Ballot Measure 1 (2024) changed Alaska’s wage rules: it raised the minimum wage in steps to $15.00 in 2027 and added paid sick leave from July 1, 2025. Alaska also keeps a daily overtime rule that most states don’t have.
- Minimum wage $14.00 from July 1, 2026, and $15.00 from July 1, 2027; inflation-indexed from 2028.
- Daily overtime over 8 hours for employers with four or more employees.
- Paid sick leave since July 1, 2025: 1 hour per 30 worked.
- Final pay within three working days after a termination.
Deadlines
- QuarterlyEmployer and employee unemployment insurance contributionsUI quarterly report
- Within 20 days of hire (federal requirement)Report new employees to the stateNew hire report
The federal baseline
This page covers what Alaska adds. The federal rules underneath it apply here too.
Common questions
Do Alaska employees pay unemployment insurance?
Yes. Alaska’s unemployment insurance has an employee contribution: 0.50% of wages up to $54,200 in 2026, withheld by the employer and remitted with the employer’s own contribution on the quarterly report.
Does Alaska have daily overtime?
If the company has four or more employees, yes. Non-exempt employees earn time and a half for hours over 8 in a day as well as over 40 in a week. Employers with three or fewer employees follow the weekly rule only.
When is the final paycheck due in Alaska?
Within three working days after a termination, not counting weekends and holidays. An employee who quits is paid by the next regular payday that is at least three working days after their last day.
How Alaska compares
- No tax on wagesStates with no state income tax on wagesAlaska: no state income tax on wages. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programAlaska: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesAlaska: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- RunwayBurn rate and runway: how to calculate them correctlyGross burn, net burn and months of runway, done the way an investor checks them: from cash, averaged, and with the hires you’ve already committed to.
More of the Alaska guide
- AccountingAccounting and state tax in AlaskaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in AlaskaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in AlaskaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in AlaskaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in AlaskaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.