Alaska Payroll Tax and Registration Guide

Employers in The Last Frontier state, here’s what you need to know about payroll taxes and business registration in Alaska. Business registration and payroll taxes can be complicated. In order to get the best advice you can, enlist the help of a lawyer or a Certified Public Accountant in the State of Alaska to guide you through the process.

Whether you’re a brand-new small business or branching out into Alaska for the first time, here’s how to stay compliant with payroll tax and business registration laws in the state.

Alaska tax account registration information

Before you can register for a tax account in Alaska, you’ll have to register your business with the state. In Alaska, under its business license statute AS 43.70, there’s no limit to how many business licenses can have the same name. Once you have your name picked out, you’ll have to register it and apply for a new business license through Alaska’s Department of Commerce, Community, and Economic Development’s Division of Corporations, Business and Professional Licensing. To do this you’ll use forms 08-4181 and/or 08-4730.

Once your business is set up, you’ll then have to register as an employer if you employ one or more people for any portion of one or more days. To register online, visit www.my.alaska.gov. Under the services tab, select Employment Security Tax and then New Registration.

Required payroll documentation for Alaska

Withholding information

Alaska imposes an Employment Security Tax on businesses and employees in the state. The wage base for this tax is $47,100 for 2023 and the standard tax rate is 2.37%.

Power of Attorney rules for Alaska Payroll Tax and Registration

Alaska does not have a tax on individual income. Therefore, there is no power of attorney available for payroll in Alaska.

Local income taxes imposed for Alaska

Alaska does not impose local income taxes.

Alaska resources for Payroll Tax and Registration Laws

Alaska’s Department of Commerce, Community, and Economic Development’s Division of Corporations, Business and Professional Licensing and its Department of Labor and Workforce Development are important resources for establishing and running a business in Alaska.

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