Paycheck Calculator Alaska - AK

(Tax Year 2023: Last Updated on May 28, 2023)

Our Alaska paycheck calculator calculates the paycheck for the ones living in the state of Alaska. All you need to do is enter the required information like your marital status, federal withholding allowances, state withholding allowances, check date, and name. You then click "calculate paycheck," and there you have it! Fortunately, Alaska State imposes no income tax on its residents.

Income Information

---

Pay Type Salary Hourly

Pay

Pay Frequency Weekly Bi-Weekly Semi-Monthly Monthly Quarterly Annually

Hourly Rate

Hours (Straight Time)

Hours (Time & 1/2)

Hours (Double Time)

Bonus/Commission/Tips

Federal Withholding

---

Marital Status Single Married

Withholding Allowances

Additional Withholding

State Withholding

---

State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

---

Additional Information

*Name

Check Date

Calculate Paycheck

Employee Information
Employee Name
Check Date
Pay Frequency
Hourly Rate
Federal Withholding
Marital Status
Withholding Allowances
State Withholding
State

Pay Type	Amount
Salary

Pay Type	Hours	Amount
Straight Time
Time & 1/2
Double Time
Gross Pay

Deduction Type	Amount
Federal Income Tax
Social Security
Medicare
Total Deductions

This Check (Take Home)

Back Download PDF

Table Of Content

Alaska - AK Paycheck Calculator: Hourly and Salary

Alaska, the largest state of America, would have been 18^th biggest in the world as a country. This state is known for its scalable mountains, wide-spread & beautiful national parks, and incredible wildlife.

Although it’s a fantastic tourist destination, living here as a resident could be difficult and costly as many towns and cities are inaccessible, especially in winter.

It's maybe due to the high cost of living or higher earnings from petroleum compared to other states in America, Alaska State doesn't charge any state income taxes on individuals. However, Apart from these perks, the Alaskans still have to deal with payroll taxes like federal taxes, whether it be an employer or employee. Moreover, employers may have to pay sales taxes to the municipalities, ranging between 1% and 7%.

Therefore, if you are an Alaskan and looking for a precise calculator along with a guide to calculating your payroll taxes, and take home paycheck amount, then you must continue reading.

Alaska Tax Facts:

• Alaska is the only state of America that doesn’t charge an Alaska State Tax on the individuals.
• The minimum wage in Alaska is raised to $9.89, from 2019, except for the Fairbanks town, having a slightly lower minimum wage of $9.80.
• The lowest minimum wage in Alaska is $2.5 higher than the federal minimum wage.
• The Median household income in Alaska is $76,114, according to the United States Census Bureau.
• The average salary of an employee working in Alaska is $13.73 per hour that sums up to approx. $28,000 annually for 40 hours workweek.
• One of the surprising facts about Alaska is that it pays its residents the money to live, from the Alaska Permanent Fund Corporation. Both adults, as well as children, can apply online for this money, known as the Permanent Fund Dividend (PFD).

How to calculate Paycheck in Alaska

The following are the steps that every employee and employee needs to consider to calculate paycheck for Hourly or fixed salary while working in Alaska.

Step 1: Determine the Pay Type

The first and foremost thing to calculate the paycheck is to determine the Pay Type. It is whether the employee is paid on:

• Hourly basis: Employee is paid at an agreed hourly rate for the number of hours worked in a day or a week. Here the employee is paid overtime for every extra hour he/she works over regular hours. According to the Fair Labor Standard Act, regular hours are 8 hours a day or 40 hours a week, and for every extra hour, an employee must be paid at time and half of the regular hourly rate as overtime.
• Salary basis: Employee is paid a fixed amount for a set number of days regardless of how many hours he/she works. Unfortunately, there is no law for paying overtime to a salaried employee.

Alaska State Laws for Pay Type:

• There are no such state laws by Alaska to determine the Hour Worked, Regular Hours. Therefore, employers and employees must follow the guideline provided by U.S Wage and Hours Division and FLSA (Fair Labor Standard Act).
• However, Alaska State Law does have laws to regulate overtime, which you will read in Step 3 ahead.

Step 2: Determine the Pay Frequency

The second step is to determine the Pay Frequency of your Paycheck; it is how often the employees are paid. Some of the standard Pay Frequencies are:

Pay Frequency	Details
Weekly	The employees are paid once a week.
Bi-Weekly	The employees are paid once every two weeks.
Semi-Monthly	The employees are paid twice a month. Usually on the 15th and 30th day of the month.
Monthly	The employees are paid once every month. Mostly at the start or end of the month.
Quarterly (Discouraged by Alabama State)	The employees are paid after every three months.
Annually (Discouraged by Alabama State)	The employees are paid once a year.

Alaska State Laws for Pay Frequencies:

Like all other states, Alaska State also has labor law regulations that oblige the employer to pay the employees regularly on scheduled payday. Moreover, it also requires the employers to pay their hourly employees on regular payday at least, monthly, semi-monthly, bi-weekly, or weekly.

However, they are allowed for an initial employment contract to monthly pay periods if both employer and employee are agreed.

Alaska State also requires the employer to pay its employees, all the final dues within three days after termination.

Step 3: Determine the Gross Pay

The third step is to determine the Gross Pay of the employee based on the following criteria:

Hourly Employee:

1. Basic Salary is calculated by multiplying Number of Hours worked in a pay frequency by Regular Hourly Rate.
2. Overtime pay is calculated according to FLSA law, where every extra hour worked after 8 hours workday or 40-hours in a week, would be counted as Overtime hour that must be paid in time and half of regular hourly rate.
3. Double Time Pay is a time that an employee is paid in double the regular hourly rate by the employee. It is paid if the employee works on federal holidays. However, their employers are not bound to pay it according to FLSA or Alaska State law.
4. Now, to deduce the Gross Pay, we need to add Overtime Pay, Double Time Pay, Bonuses, Commissions, fringe benefits, Vacations Pay, Sick Pay, and Holiday Pay (If Any) into Basic Salary.

Salaried Employee:

1. To determine the gross salary for the employee, start with the annual salary and divide it by the number of pay periods to get a basic salary. For example, if the employee’s annual salary is $36500, and is paid once a month, then you must divide 36500/12. Therefore, the employee's basic salary is $3042.
2. Now, add (if any) reimbursements, commissions, bonuses, *fringe benefits, or tips to the basic salary of the employee.
3. Next, you need to add overtime pay into basic salary, only if the salaried employee has a salary equal to or below $455 a week or $23,660 annually. The FLSA regulates this, and the employee must be paid overtime at the rate of time and half of the hourly rate.
4. Last, subtract any unpaid time off(s) from the basic salary to get Gross Pay.

Fringe Benefits:

Fringe benefits are the benefits offered by employers to employees who meet specific criteria set by the company. These benefits are often taxable and can affect the employee's paycheck.

The Fringe benefits are often deducted from employee’s Paycheck by Specific Dollar Amount or Percentage of the Gross Pay.

Some of the common Fringe Benefits are:

• Health Insurances, including Medical, Dental, and Vision.
• Individual HSA or Family HSA.
• Housing, Company Car, and/or Cell Phone.
• Gym and Fitness.
• Student Loan Repayment.

Alaska State Laws for Gross Pay:

• According to Alaska State Law for minimum wage, the employers in Alaska must pay a minimum wage of $9.89 (Effective from 2019) an hour to their employees.
• Alaska Labor law requires the employers to grant 30 minutes of a lunch break to the employees, having ages 14-17 if they work five or more consecutive hours. Employees above 18 years of age don't require any lunch break unless, if the employer is willing to do so, he/she can provide it for 20 minutes or less and un-paid.
• Alaska law for overtime prohibits the employer for calculating overtime pay using fluctuating-workweek method (also known as half-time for overtime or Chinese Overtime)
• Employers having less than four employees are exempt from the overtime law.
• There are no guidelines found in FLSA and Alaska State law that limits the total number of hours an employee can work as overtime.
• According to the Family and Medical Leave Act (FMLA), Employers with at least 50 employees must grant 12-weeks of unpaid time-offs per year to the eligible employee for caregiving or illness.
• Alaska Law doesn't bound the employer to pay vacation pay, premium pay for working on holidays (double time), sick leave, or paid holidays. However, the employer can offer these benefits (if they will) on specific terms and conditions.
• Alaska State defines the workweek of a total of 168 hours, which is equal to 7 days.
• Employers in Alaska are required to pay for Waiting Time and On-call Time to employees.

Step 4: Determine the Filing Status:

Here starts the complicated part. After the Gross Pay for the employee is deduced, the next thing an employer has to do is to refer the W-4 tax form.  This form is filled by the employee while joining the job.

The form W4 contains all the essential details, including income tax details, marital status, and the number of allowances to be claimed. These details are required to calculate the Taxable Income, Federal Taxes, Allowances, State Taxes, and Local Taxes, that the employer has to withhold from the employee's salary.

There is a total of four filing statuses, from which the employee has to choose one. These are as follow:

• Single
• Married filing separately
• Married filing jointly
• Head of Household

Step 5: Calculating the Taxable Income:

Taxable income is the income, which is used to determine the amount of taxes that should be withheld from the employee’s paycheck by the employer. It is different from Gross Pay.

There is the portion of income that is exempted from the taxes, such as cash gifts, inheritances, rebates, Welfare income, child support, State and local tax refunds, Life insurance, etc. This portion can be determined and claimed by the taxpayer (employee) by using "itemized deductions."

As the "itemized deductions" process is too long, the Taxpayer can also go for "standard deductions (a specific amount defined by the government to be deducted from Gross Pay according to taxpayer’s filing status" instead, for calculating the Taxable Income.

Standard Deduction amount for 2018 to 2025 is as follow:

Filing Status	Standard Deduction Amount
Single	$12,000
Married Filing Separately	$12,000
Married Filing Jointly	$18,000
Head of Household	$24,000
Qualifying Widow(er)s	$24,000

To determine the Taxable income, the taxpayer (employee) has to:

• Subtract any "Standard deductions" or "Itemized deductions" deductions from the Gross Pay.
• Subtract any "tax exemptions" such as "dependent exemption"

Step 6: Subtracting the Pre-Tax Contributions from Taxable Income:

As of now, the taxable income of an employee is deduced. The next step is to subtract any pre-tax contributions that were chosen by the employee. These contributions are designed to encourage employees to save for their retirement. Additionally, it further reduces the amount of taxable income, hence, increasing the take-home amount of an employee.

However, not all contributions are exempted from all taxes, but only from federal income tax. Therefore, some employees may have to pay FICA, state, or other taxes on such contributions.

Following are some of the common contributions that an employee can choose:

1. Traditional 401(k) or 403(b) or other qualified retirement plans
2. traditional IRA - Individual Retirement Accounts
3. Solo 401(k), SEP-IRA or SIMPLE IRA
4. healthcare savings account (HSA)
5. Dental Insurance
6. Vision Insurance
7. Commuter Benefits including commuter parking, commuter transit and/or commuter benefits
8. Health Insurance
9. Dependent care FSA contributions

Step 7: Deducing the Number of Federal Allowances:

Before jumping on to Federal Taxes, it is essential to conclude the number of Allowances that an employee needs to claim.

Allowances are exemptions from paying a certain amount of income tax. Therefore, the amount of withholding tax that an employer withholds from the employee’s paycheck is inversely proportional to the number of allowances claimed.

General Number of Allowances a Taxpayer (Employee) must Claim
Situation	Number of Allowances to claim
The taxpayer depends on someone	0 to 1 Allowance
Single – One Job – Taxpayer doesn't depend on anyone	1 to 2 Allowances
Married Couple with no dependents	2
Head of Household with one dependent	3
A married couple with one dependent	3
A married couple with two dependent	4

Effects of Allowances on Federal Taxes

The employee in form W4 already fills details of claimed allowances. The employee must do a complete working before filling out the details for the number of allowances he/she needs to claim as claiming extra Allowances may cause underpayment of taxes that results in a penalty by the IRS. On the other hand, claiming fewer Allowances is like lending money to IRS without any benefit.

Effects of Allowances on Federal Taxes
Situation	Effects on Federal Withholding Taxes	Consequences
To many Allowances claimed	· Withholding Federal Tax decreases · Take-Home Pay Increases · The taxpayer may owe money to IRS	· Tax Payer has to pay the pending tax amount along with penalties
Too few Allowances claimed	· Withholding Tax Federal increases · Take-Home Pay decreases · IRS may owe money to the taxpayer, for which	· Tax Payer is likely to receive a refund · Tax Payer may have less money to spend the whole year until the refund is received

Details on how many allowances an employee must claim are provided here.

Step 8:  Subtracting the Federal Taxes

Once the final taxable income is calculated after subtracting all deductions (standard or itemized) and contributions, a certain amount is withheld by the employer from an employee's paycheck as federal income tax along with the two federal (FICA) programs: Social Security and Medicare.

Federal Income Taxes

This Federal Income Tax rate is applied at a gradual level, ranging from 0% to 37% of taxable earnings. The Tax rate depends on the filing status, number of Allowances claimed, and taxable income.

Therefore higher the income, the higher the federal tax rate, and the higher the number of Allowances claimed, the higher the Net Pay (Take-home Pay).

These rates are as follow:

FICA Taxes (Social Security and Medicare):

In addition to the Federal Income Tax, Employers are also abided to withhold an amount from the employee’s paycheck for FICA Tax (Federal Insurance Contributions Act). These taxes are used to help American citizens with retirement, disability, survivorship, and medical treatment.

FICA Tax comprises of:

1. Social Security Tax

A total of 12.4% of FICA tax is paid for Social Security, by both employee and employer. Here 6.2% is paid by the employee and remain 6.2% is funded by the employer. However, the Social Security tax is only applicable to the first $132,900 (in 2019) earned. No amount is charged above this earning,

2. Medicare Tax

1.45 percent each is paid to Medicare by both employee and employer. Moreover, if the taxpayer (employee or employer) earns more than $200,000 as a single filer or $250,000 as a married couple than additional Medicare taxes of 0.9% are to be paid.

Some points related to Federal Withholdings Taxes for Alaska State:

• The employee is exempted from paying federal tax if, in the previous tax year, he/she has received a refund of all federal income tax withheld from his/her paycheck because he/she had zero tax liability.
• The employee is exempted from paying federal tax if, in the current year, he/she is expecting to receive a refund of all federal income tax withheld because he/she expects to have zero tax liability again. If the employee thinks that he/she qualifies for this exemption (for example, because his/her income is quite low), he/she can indicate this on his/her W-4 Form.
• The employee is exempted from paying social security tax who are nonpermanent, temporary, or substitutes.

Step 9: Subtracting State Taxes:

As we have discussed above, the Alaska State doesn’t charge any State Income Tax or Local Tax on the individuals. Therefore, you don’t need to subtract any State and Local Taxes from the Paycheck.

However, unlike the other States of America, where Un-employment Tax is paid only by the employers, Alaska State abides the employers to withhold a share from employee's salary too, as Employment Security Tax. Rates for 2019 for Employment Security Tax for Employer and a percentage of the employee are follow:

Year	Wage Base (Annual)	Standard Rate	Employee Rate	Employee Total
2019	$39,900	1.78%	1.78%	$199.50

You can get updates on Employment Security Tax, on the official website for Alaska Labor HERE

Good News:

Surprisingly, Alaska State pays it's adult and children residents from Alaska Permanent Fund, who are living in Alaska for a whole Calendar year and intending to live here further. To avail such incentives, the resident must apply for the Permanent Fund Dividend (PFD).

Step 10: Subtracting the Post-Tax Deductions and Contributions

Although employers are not abided to withhold any post-tax deductions and contributions from employee’s paycheck. However, the employee can voluntary choose some post-tax contributions and benefits.

If an employee has opted some, then its employer's duty to account them into the employee's paycheck.

Some of the common Post-Tax Contributions are:

• Retirement funds like Roth 401(k).
• Wage Garnishments; It is an amount that may also be withheld by the employer from the employee's paycheck if the employee is subjected to any court-ordered garnishments.
• Contributions to 529 college savings plans, Union dues or charitable donations.
• PERS - Voluntary Contributions

Step 11: Calculating Paycheck

Once you have calculated all the details, as discussed above, then it's time to enter all your details into our Alaska Paycheck Calculator and deduce the "Net Pay"  amount instantly.

FAQs