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Free Alaska payroll tax
calculator (and AK tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

The payroll tax calculator at the top of this page is all you need to get payroll taxes right in Alaska. Just enter income and W-4 information for each employee, and the calculator will take care of the rest.

Federal payroll taxes for Alaska employers

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:

  1.  Gross Wages:
    • For all your hourly employees, multiply their hours worked by the pay rate. Don’t forget to increase the rate for any overtime hours.
    • For all your salaried employees, divide each employee’s annual salary by the number of pay periods you have.
    • Don’t forget to add in other forms of compensation, such as commissions, tips, or bonuses, into gross wages.
  2. Pre-tax withholdings. Subtract any eligible retirement savings account, Flexible Spending Account, Health Savings Account, and other pre-tax withholdings.
  3. Federal Income Tax. The biggest tax there is. Rates range from 0% to 37%. We won’t get into all the nitty-gritty details here. You can find all the tax bracket information you need on the IRS website.
  4. FICA taxes:
    • Social Security Tax. Withhold and match 6.2% of each employee’s taxable wages until they have earned $168,600 (2024 tax year) for that calendar year. Any wages above $168,600 are exempt from the Social Security Tax.
    • Medicare Tax. Withhold and match 1.45% of each employee’s taxable wages until they have earned $200,000 (2024 tax year). Once an employee has surpassed an annual earning of $200,000, he or she has to pay an additional 0.9% tax called…wait for it…Additional Medicare Tax (super original, we know). Fortunately for you, only employees are responsible for paying this tax.
  5. FUTA Unemployment Tax. Employees are not responsible for paying the FUTA tax, so this one is all on you. Employers have to pay 6% of the first $7,000 each employee earns per year. The good news is that you’re eligible to get a credit of up to 5.4%, making your effective FUTA tax rate 0.6% if you pay your state unemployment tax on time and in full. All the finer details on the FUTA credit reduction can be found in this video made in this video on the IRS website.
  6. Post-Tax Withholdings. This is the final deduction for any special responsibilities an employee may have, such as court-ordered wage garnishments and child support. Not many of your employees will have post-tax withholdings, but you still need to be on the lookout for them.

 

If you would like a more detailed explanation of federal payroll taxes, head on over to our step-by-step guide for additional information.

Alaska state payroll taxes for 2024

Nope, nothing to see here.

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Alaska state unemployment insurance

As an employer in Alaska, what you do have to pay is unemployment insurance to the state.

  • The 2024 rates range from 1% to 5.4% on the first $49,700 in wages paid to each employee in a calendar year.
  • You will also have to withhold 0.51% on the first $49,700.00 in wages from each employee.
  • If you’re a new employer (congratulations on getting started!), your rate will generally be 1.00% to 1.16%. 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!

Staying compliant

Did you know that almost all employers in the state must carry workers’ compensation? Learn more about who needs coverage, the benefits it provides, and how to get a policy in our employer’s guide to Alaska workers’ comp.

Write those paychecks

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 IRS employment tax due dates.

Additional Alaska payroll tax resources:

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:

 

Register Your Business and Unemployment Tax Handbook

 

Or if you have any questions, call them at (907) 465-2757.

More helpful payroll calculators

Employers in Alaska can use the calculator at the top of this page to calculate gross pay, net pay, and deductions in just a few clicks (and feel confident when cutting paychecks). But occasionally, situations come up that call for a little bit more number crunching. For instance, do you sometimes reward high-performing employees with bonuses? Remember that these payments are considered supplemental wages in the eyes of the IRS (and subject to tax withholding). Furthermore, as employees come and go, you may need to figure out what their final paycheck will be. So, if you can use a little more help managing the math, check out some of the calculators listed below.

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