Being detached from the Continental 48, Alaska almost feels foreign to a lot of Americans who only associate the state with its namesake salmon and king crab. As an insider, you know full well that Alaska’s glaciers and fjords, not to mention the midnight sun in the summertime, can make it seem like heaven on earth. That’s why you started a small business here. Oh, and the fact that the state pays residents to live here instead of the other way around is certainly a nice cherry on top.
But the one thing that isn’t heavenly about owning a small business in Alaska is having to deal with payroll taxes. Luckily, that’s what we’re here for. Our nifty payroll calculator is here to the rescue. All you have to do is enter wage and W-4 information for each employee, and the calculator will take care of the rest.
Regardless of whether your employee is paid on salary, hourly, or by other means, all federal payroll taxes are the same. To make things simple for you when you think about Uncle Sam, all you need to do is remember these six aspects of federal payroll taxes:
If you would like a more detailed explanation of federal payroll taxes, head on over to our step-by-step guide for additional information.
Nope, nothing to see here.
As an employer in Alaska, what you do have to pay is unemployment insurance to the state. The 2020 rates range from 1% to 5.4% on the first $41,500 in wages paid to each employee in a calendar year.
You will also have to withhold 0.50% on the first $41,500 in wages from each employee.
If you’re a new employer (congratulations on getting started!), your rate will vary between 1%-1.28%. You can call (907) 465-2757 to find out what your rate will be.
Remember to pay in full and on time so that you can save 90% on your FUTA tax!
It’s time to pay your employees! Now that all the numbers have been calculated, factoring in all deductions and withholding requirements, you can pay your employees the check they deserve. Make sure you’ve set aside any tax liabilities your company owes and you’ll be good to go!
Federal tax filings are due quarterly by filing Form 941. There’s also the Form 940 for FUTA annual filings. but for most Alaska employers, deposits must be made on an ongoing basis via the EFTPS payment system. You can find employment tax due dates from the IRS here.
If you want to learn more about Alaska Payroll Taxes, we think you should check out the Department of Labor and Workforce Development website, particularly these two sections:
Or if you have any questions, call them at (907) 465-2757.