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United States – Alaska 2021
Day Date Holiday Notes
Saturday Jan-1 New Year's Day In most States, the company can decide if to give off Public Holidays and usually holidays falling on a Saturday are moved to the Friday before.
Monday Jan-17 Martin Luther King, Jr. Day
Monday Feb-21 Presidents' Day
Monday Mar-28 Seward's Day
Monday May-30 Memorial Day
Monday Jul-4 Independence Day
Monday Sep-5 Labor Day
Tuesday Oct-18 Alaska Day
Friday Nov-11 Veterans' Day
Thursday Nov-24 Thanksgiving Day
Sunday Dec-25 Christmas Day In most States, the company can decide if to give off Public Holidays and usually holidays falling on a Saturday are moved to the Friday before.
Monday Dec-26 Christmas Holiday
Countrypedia

United States – Alaska
Payroll and Benefits Guide

Last updated: Feb 03, 2022
Currency
United States Dollar (USD)
Payroll Frequency
Bi-Monthly/Monthly
Employer Taxes
11.32%- 21.12%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For United States – Alaska

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Overview

Capital
Juneau
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

1.00%- 5.40% (Maximum taxable wages is 45,200.00 USD)

Unemployment (State)

2.07% (Maximum taxable wages is 45,200.00 USD)

Unemployment- New Employer (State)

6.20%  (Maximum taxable wages is 147,000.00 USD) 

FICA Social Security (Federal)

1.45% 

FICA Medicare (Federal)

0.60%-6.00% (Maximum taxable wages is 7,000 USD)

FUTA Unemployment (Federal Unemployment Tax Act) The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.

11.32%- 21.12% Total Employment Cost

Employee

Employee Payroll Contributions

0.56% (Maximum taxable wages is 45,200.00 USD)

Unemployment (State)

6.20%  (Maximum taxable wages is 147,000.00 USD) 

FICA Social Security (Federal)

1.45% 

FICA Medicare (Federal)

0.90%

Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.90% in Medicare taxes)

8.21% - 9.11% Total Employee Cost

Employee

Employee Income Tax

Federal Income Tax For Single Filers
10.00%

Up to 10,275 USD

12.00%

10,276 USD to 41,775 USD

22.00%

41,776 USD to 89.075 USD

24.00%

89,076 USD to 170,050 USD

32.00%

170,051 USD to 215,950 USD

35.00%

215,951 USD to 539,900 USD

37.00%

539,901 USD or more

Federal Tax - Married, filing jointly
10.00%

Up to 20,550 USD

12.00%

20,551 USD to 83,550 USD

22.00%

83,551 USD to 178,150 USD

24.00%

178,151 USD to 340,100 USD

32.00%

340,101 USD to 431,900 USD

35.00%

431,901 USD to 647,850 USD

37.00%

647,851 USD or more

Federal Tax - Heads of Households
10.00%

Up to 14,650 USD

12.00%

14,651 USD to 55,900 USD

22.00%

55,901 USD to 89,050 USD

24.00%

89,051 USD to 170,050 USD

32.00%

170,051 USD to 215,950 USD

35.00%

215,951 USD to 539,900 USD

37.00%

539,901 USD or more

Standard Deduction and Personal Exemption
12,950.00 USD

Single

25,900.00 USD

Married Filing Jointly

19,400.00 USD

Head of Household

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.

Working Week

Monday-Friday

Leave

Paid Time Off

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

There are 12 public holidays in Alaska  

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.
  • The employee may be entitled to leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • To care for the employee’s spouse, child, or parent who has a severe health condition.
  • 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 servicemember 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 additional 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

Maternity leave falls under the FMLA state law (see Sick Leave).

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.

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).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination.

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 3 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.

VISA

VISA

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 or the 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.
  • O: For people with extraordinary abilities 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 or 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 tax rate but local sales tax rates of between 0% and 7.85%.

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated
January 1, 2021
Minimum wage: up from $10.19 to $10.34 per hour.
Stay up to date on payroll & employment law changes

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