Free Alaska Payroll Calculator | 2019 AK Tax Rates | OnPay
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Free Alaska Payroll Tax Calculator and AK Tax Rates

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.

Federal Payroll Taxes

 

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. Pre-tax withholdings. Subtract any eligible retirement savings account, Flexible Spending Account, Health Savings Account, and other pre-tax withholdings.
  2. 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.
  3. FICA Part 1 – Social Security Tax. Withhold and match 6.2% of each employee’s taxable wages until they have earned $132,900 (2019 tax year) for that calendar year. Any wages above $132,900 are exempt from the Social Security Tax.
  4. FICA Part 2 – Medicare Tax. Withhold and match 1.45% of each employee’s taxable wages until they have earned $200,000 (2019 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 on this 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

Nope, nothing to see here.

 

Let Us Handle Payroll for You

OnPay processes payroll and automates all your tax payments and filings.

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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 2019 rates range from 1% to 5.4% on the first $39,900 in wages paid to each employee in a calendar year.

 

You will also have to withhold 0.50% on the first $39,900 in wages from each employee.

 

If you’re a new employer (congratulations on getting started!), your rate will vary. 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!

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 employment tax due dates from the IRS here.

 

Additional AK 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

Make Payroll a Breeze

OnPay pays your employees and does tax filings for you.