Alaska · 2026 and 2027
Alaska employer payroll taxes and employee cost: 1% SUTA on $54,200
In Alaska, a $50,000 employee costs a new employer about $63,646 a year in 2026: 27.3% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Alaska
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Alaska employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Alaska unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Alaska unemployment insurance (SUTA)
1% of $54,200
New employers pay 1% on the first $54,200 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- State paid leave and disability premiums
None
Alaska has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
40 hours / 56 hours a year
One hour per 30 hours worked; up to 40 hours a year with fewer than 15 employees, 56 hours with 15 or more. The hours are paid but not worked, so they raise the cost per hour worked.
per Alaska Department of Labor and Workforce Development, as of Jul 1, 2025
- Workers' compensation
$1.16 per $100 of payroll
Index rate for a standard mix of job classes: rank 20 of 51 (1 = highest) and 106% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$8,699 single / $23,961 family
Average employer contribution per enrolled employee a year at Alaska private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$14 in 2026
Alaska's rate since Jul 1, 2026.
per Alaska Department of Labor and Workforce Development, as of Jul 1, 2026
- Minimum wage for 2027
Not included
Minimum wage for 2027: not used until the official figure is verified.
Checked against each source on Oct 23, 2026.
Two worked examples in Alaska
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $50,000 | $500 |
| Workers' compensation (state index rate)$1.16 per $100 of payroll | $580 |
| Health insurance (single coverage, state average)average employer contribution | $8,699 |
| Total cost a year | $63,646 |
27.3% on top of pay · $31.20 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $36,720 |
|---|---|
| Paid sick leave required by law40 hours | $720 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $37,440 | $374 |
| Workers' compensation (state index rate)$1.16 per $100 of payroll | $434 |
| Health insurance (single coverage, state average)average employer contribution | $8,699 |
| Total cost a year | $49,854 |
33.2% on top of pay · $24.44 per hour worked
What changes for Alaska employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Alaska?
About $63,646 a year in 2026 for a $50,000 employee of a new Alaska employer with 10 staff: $13,646 above pay, of which $8,699 is health coverage, $580 workers' comp and $500 Alaska unemployment tax. At $18 an hour full time: $49,854.
What payroll taxes do employers pay in Alaska?
Alaska new employers pay $4,367 yearly on a $50,000 salary, $500 of it state unemployment tax.
What is the Alaska SUTA rate for new employers in 2026?
1% on the first $54,200 of each employee's pay: up to $542 per employee a year.
What is the minimum wage in Alaska in 2027?
$14 an hour in 2026; Alaska had not published its 2027 rate by Oct 23, 2026.
Is paid sick leave required in Alaska?
Yes. One hour per 30 hours worked; up to 40 hours a year with fewer than 15 employees, 56 hours with 15 or more. That is 56 paid hours a year for a full-time Alaska employee at 100 employees.
How much does workers' comp cost in Alaska?
$1.16 per $100 of payroll at Alaska's index rate (rank 20 of 51, 106% of the median): about $580 on $50,000 of pay.
How much do Alaska employers pay for health insurance?
$8,699 a year per employee with single coverage and $23,961 with family coverage, the average Alaska private-employer share of $10,630 and $30,132 premiums in 2025.
More employer cost pages
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Data and rules for every state
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.