Alaska Payroll Instructions

There is currently no state income tax in Alaska, so there is also no state payroll withholding. You'll still need to set up for federal withholding-- follow these steps:

1. Choose Employees from the Accounts menu.
2. Locate the employee record.
3. Click the Payroll Setup button.
4. Enter the employee's marital status into the Marital Status field.
5. Enter the number of federal dependents into the Federal Exemptions field.
6. Enter the Alaska Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
7. Click OK.

In 2010 the Alaska unemployment tax applies to the first $34,100 of each employee's annual wages (up from $32,700 last year). The 2010 basic rate for new construction businesses is 2.1% , adjusted for experience after the first year. Some other types of businesses get a lower starting rate.

There is also an employee withholding of 1/2% for unemployment coverage, with a maximum deduction of $150.50 per year.

To enter your Alaska SUTA tax rate into the Goldenseal construction payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
2. You'll see a list of Tax Items. Locate your state's SUTA tax in the list, and double-click on it. HINT: If you don't see SUTA listed, you'll need to import your state's payroll info.
3. Enter the percent that you pay into the percentage field to the right of Calculation method.
4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Alaska Department of Revenue
Pouch SA, PO Box 110420 Juneau AK 99811-0400
907 465-2320

Alaska Department of Labor, Employment Security Division (SUTA)
PO Box 25509
Juneau, AK 99802
800 448-3527, 907 465-2787 or 907 465-2700

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