Payroll and Benefits Guide - United States -Alaska

United States - Alaska
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Currency

United States Dollar (USD)

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Capital

Juneau
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Employer Taxes

11.65% – 22.05%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Alaska is nicknamed “The Last Frontier” because of its remote and untamed wilderness, which remains largely untouched by human development.

The famous Iditarod Trail Sled Dog Race takes place in Alaska each year.

Malta is famous for its ancient temples, such as the Ġgantija temples on the island of Gozo.

Blue Gradient BackgroundThe state has over 70 potentially active volcanoes,.

Alaska is home to the largest salmon fishing industry in the world.

The state is famous for its aurora borealis (northern lights) displays

Contributions

Employee Payroll Tax

Contribution Type Rate
Unemployment (State) 0.51%
FICA Social Security (Federal) 6.20%
FICA Medicare (Federal) 1.45%
Additional tax on earnings over 200,000 USD 0.90%

Employer Payroll Tax

tr>FUTA (Federal Unemployment Tax Act)0.60% -6.00% (Maximum taxable wages is 7,000 USD)

Contribution Type Rate
Unemployment Insurance (State) 1.00%- 5.40%
Unemployment- New Employer (State) 3.00%
FICA Social Security (Federal) 6.20%
FICA Medicare (Federal) 1.45%

Payroll

Payroll Cycle

The payroll cycles are semi-monthly or monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

In Alaska, the workweek is a maximum of 40 hours per week or 8 hours per day.

Overtime

Except for certain minors, employers have the authority to enforce mandatory overtime for employees.

Leave

Paid Time Off

In Alaska, there are no specific state laws that regulate paid time off. However, it is customary for employers to determine whether they provide paid or unpaid vacation leave.

Public Holidays

There are 12 public holidays in Alaska.

Sick Days

Eligible employees have the right to take up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons.

Maternity Leave

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.

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.

Paternity Leave

Paternity leave falls under the FMLA (see Sick Leave).

Parental Leave

Paternity leave falls under the FMLA (see Sick Leave).

Termination

Termination Process

In the United States, unless there are mass dismissals or specific provisions in an employment contract or collective bargaining agreement, there is no mandated formal notice period for terminating an individual employment relationship.

Notice Period

Most employees are employed “at-will,” and either party can terminate the employment relationship without notice.

Severance Pay

Unless specified otherwise in an employment contract or collective bargaining agreement, employers are generally not obligated to provide severance pay to employees upon termination.

Probation Period

Probation Period

In Alaska, the concept of probationary periods for new workers is not explicitly regulated by state law.

Immigration

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/ 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).

For Work Permits

H-1B – for applicants with a college degree hired to do specialized work.

H-1B1 – for applicants with a college degree from Chile and Singapore.

H-2A – for temporary or seasonal agriculture work.

H-2B – for temporary non-agricultural work.

L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.)

0 – for people with extraordinary ability in science, arts, education, business, or athletics.

VAT

Alaska has no state tax rate but local sales tax rates of between 0% and 7.85%.