Alaska Payroll Instructions

Alaska has no state income tax, but you'll still need to withhold federal taxes, and pay the Alaska state unemployment tax (SUTA) and federal unemployment (FUTA). Alaska also requires that employers maintain worker's compensation insurance for their employees, but that is usually handled as a separate insurance policy rather than as a payroll tax item.

Because of dwindling oil production, Alaska is considering additional taxes. Unfortunately, it may soon need to leave the ranks of income-tax-free states!

HINT: We provides free updates for Alaska and federal payroll tax tables in our payroll software. Click here to download the latest version of the Alaska tax tables for Goldenseal.

Alaska State Withholding Tax

There is currently no state income tax in Alaska, so there is also no state payroll withholding. You'll still need to set up for federal withholding-- follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter an Alaska Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Alaska packages in the list, you'll need to import the tax info first.
  7. Click OK.

Alaska State Unemployment Tax Instructions

In 2022 the Alaska unemployment tax applies to the first $46,800 of each employee's annual wages (increased from $45,200 last year). The standard rate is 2.57%, adjusted for business type. The rate is adjusted for experience after the first year.

There is also an employee withholding of 1/2% for unemployment coverage, on wages up to the $46,800 cutoff.

To enter your Alaska SUTA tax rate into Goldenseal construction payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open your state's SUTA item HINT: If you don't see SUTA listed, you'll need to import your state's payroll info.
  3. Enter the percent that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

State Tax Contacts

Website

Official State Lawn Ornament

Sleeping moose.