Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Alaska
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Alaska, you must be registered with the Alaska Department of Labor and Workforce Development (unemployment tax). As a reminder, Alaska does not have state income tax.
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Alaska Accounts and Rate Info
Registering for an Unemployment Insurance (SUI) Tax Account:
New employers should register with the Alaska Department of Labor and Workforce Development to obtain an assigned unemployment tax rate, which varies by industry.
After registering, you'll receive a confirmation and your unemployment tax rate via email within 30 days, followed by a letter in the mail. Your Alaska Total Contribution Rate will appear on the “Contribution Rate Notice” and includes both the employer and employee components. Be sure to enter the combined rate into your Justworks Payroll account.
Already Registered? Locate This Information
Locate Your Unemployment Account Number and Rate:
If your business has previously processed payroll in Alaska, you can find your account number and unemployment rate by:
- Reviewing notices from the Alaska Department of Labor and Workforce Development, such as the “Contribution Rate Notice” or “Quarterly Contribution Report,” or
- Contacting the agency at (907) 465-2757.
Reminder: You will also need to enter Standard Occupational Classification (SOC) codes for your employees in Alaska.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid AK address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Alaska” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your AK Unemployment Account Number and Tax Rate and Employee SOC Codes.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your AK tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your AK state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your AK state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.