United States of America – Alaska
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Introduction
General Overview & Economic Facts
- The United States of America commonly known as the United States or America is a country located in North America. The United States consists of 50 states, a federal district 5 major unincorporated entities, 326 Indian reservations and some minor possessions
- Alaska is a USA state, located in the northwest of North America. It has a population of approximately 736,081 and spans an area of 1,717,856 km2 (663,268 mi2)
- The United States has the 2nd largest economy by PPP and the 1st largest economy by nominal GDP
- It ranks fairly high on the Human Development Index with a ranking of 17 (2019)
Why Employ In United States of America – Alaska?
- The main exports include ores, fish and aircraft parts
- 12.91% of the population is between the ages of 15 and 24 years, with 38.92% of the population being between the ages of 25 and 54. The United States has a more mature demographic with the average age being 38 years old.
Overview Of The Labour Law
- The United States Labour Law sets the rights and duties for employees, labour unions and employers in the United States. The basic goals of the labour law are to ensure there is no inequality of bargaining power between employees and employers. The laws further assist in eliminating discrimination and promoting equality at work.
- Employees in the United States have the right to join a trade union and the right to join a trade union without facing discriminatory labour practices. Contracts of employment can always improve the statutory minimum rights employees are entitled to but cannot diminish them.
- Alaska is an “employment-at-will” state which means that either the employee or employer can terminate the employment agreement at any time unless there is a specific law preventing this form occurring.
Fun Country Facts
- Alaska’s population density is one person per square mile
- Alaska means “The Great Land” and the name comes from the Aleut word Alyeska
- Alaska’s flag was designed by a 13-year-old
Why Use Playroll Services For United States of America – Alaska?
- Employing in the United States requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in the United States
- With Payroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
State Unemployment Insurance (SUI)
Experienced Employers – Lowest Normal Rate
1.50%
Experienced Employers – Highest Normal Rate
6.20%
New Employer Normal Rate
3.40%
Federal Insurance Contributions Act (FICA)
Calculated on gross annual remuneration up to a maximum of USD 147,000.00 per year
6.20%
Medicare
Calculated on gross monthly remuneration
1.45%
Workers' Compensation Insurance
1.95%
Federal Unemployment Tax (FUTA)
6.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Federal Insurance Contributions Act (FICA)
Calculated on gross annual remuneration up to a maximum of USD 147,000 per year
6.20%
Calculated on gross monthly remuneration
Earning between 0 and USD 200,000.00 per annum
1.45%
Earning USD 200,001.00 or more
2.35%
State Unemployment Insurance (SUI)
Calculated on gross annual remuneration up to a maximum of USD 45,200.00 per year
0.56%
Federal Income Tax
Single Taxpayers or Married Taxpayers Filing Separately
Income bracket per annum
0 – 10,275
10.00%
10,275 – 41,775
12.00%
41,775 – 89,075
22.00%
89,075 – 170,050
24.00%
170,050 – 215,950
32.00%
215,950 – 539,900
35.00%
539,900 and above
39.00%
Married Taxpayers Filing Jointly
Income bracket per annum
0 – 20,550
10.00%
20,550 – 83,550
12.00%
83,550 – 178,150
22.00%
178,150 – 340,100
24.00%
340,100 – 431,900
32.00%
431,900 – 647,850
35.00%
647,850 and more
37.00%
Head of Household Taxpayers
Income bracket per annum
0 – 14,650
10.00%
14,650 – 55,900
12.00%
55,900 – 89,050
22.00%
170,050 – 215,950
24.00%
170,050 – 215,950
32.00%
215,950 – 539,900
35.00%
539,900 and more
37.00%
Employment Terms
General
Minimum Wage
- USD 10.34
Working Hours
- Maximum of 40 hours per week and 8 hours per day
- There is no statutory meal break
- Typical working hours are 09h00 to 17h00 Monday to Friday
Overtime
- There are no maximum overtime hours in Alaska. Employers in Alaska must pay employees 1.5 times the established wage rate for any hours over 40 worked in a week
Notice Period
- As an “employment-at-will state,” Alaska employers are not required to give advance notice to employees upon termination
Severance Pay
- Employers are not legally required to offer their employees a severance package
- Employees must be paid all wages due to them at the time of termination
Probation Period
- There is no statutory probation period
- Typical probation periods are 6 months to a year
Bonus
- Employers are not legally required to offer their employees a bonus
Public Holidays
Public holidays 2023
- January 1st – New Year’s Day
- January 17th – Martin Luther King Jr. Birthday
- February 20th – President’s Day
- March 27th – Seward’s Day
- May 29th – Memorial Day
- June 19th – Juneteenth
- July 4th – Independence Day
- September 4th – Labour Day
- October 9th – Columbus Day
- October 23rd – Alaska Day
- November 11th – Veterans Day
- November 23rd – Thanksgiving Day
- December 25th – Christmas Day
Leave
Paid Leave / Vacation Days
- Paid time off is not mandatory in Alaska
Family and Medical Leave Act
12 weeks
An employee is entitled to FMLA leave in the following circumstances:
- Birth and care of the employee’s child, or placement for adoption or foster care of a child with the employee
- Care of an immediate family member (spouse, child, parent) who has a serious health condition or
- Care of the employee’s own serious health condition