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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.

By LeadChange Research TeamUpdated

Calculate the cost of an employee in Alaska

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Cost of one employee in Alaska · 2026

$63,646 a year

On top of pay
$13,646 (27.3%)
Per hour worked
$31.20
  1. Pay for hours worked$49,0382,040 hours
  2. Paid sick leave required by law$96240 hours · per Alaska Department of Labor and Workforce Development, as of Jul 1, 2025
  3. Social Security (employer share)$3,1006.2% of $50,000 · per Social Security Administration, as of Jan 1, 2026
  4. Medicare (employer share)$7251.45% of $50,000 · per Social Security Administration, as of Jan 1, 2026
  5. FUTA (federal unemployment tax)$420.6% of $7,000 · per Internal Revenue Service, as of Jan 1, 2026
  6. State unemployment insurance (new employer)$5001% of $50,000 · per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
  7. Workers' compensation (state index rate)$580$1.16 per $100 of payroll · per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
  8. Health insurance (single coverage, state average)$8,699average employer contribution · per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025

    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.

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    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.

    States with a similar employer cost

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    Benefits and workers’ comp are most of this cost

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