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REMOTE EMPLOYEES

Hiring a remote employee in Alaska

Your company is in another state and one employee lives and works from home in Alaska. Which state's taxes apply, unemployment, paid leave and Alaska's employer rules, each with its official source.

Facts checked on October 5, 2026 against the official sources listed at the end of this page. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Alaska at a glance

Income tax
No income tax on wages
Unemployment
$54,200 wage base, 1% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
Alaska has no income tax on wages, so nothing is withheld for Alaska.Source: Alaska Department of Revenue, Tax Division, Withholding Tax (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Alaska for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

No state income tax withholding: neither state taxes these wages.

No New York withholding: the employee does no work in New York.

Unemployment

Alaska: the employee works from home there, so the work is localized in Alaska.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Alaska, so the work is localized in Alaska: pay Alaska unemployment tax, not your company state's.

Agency
Alaska Department of Labor and Workforce Development, Employment Security TaxSource: Alaska DOLWD, Employment Security Tax (opens in a new tab), checked October 5, 2026
Wage base
$54,200 IndexedSource: Alaska DOLWD, Employment Security Tax FAQ: Rate/Taxable Wage Base (opens in a new tab), checked October 5, 2026
New employer rate
1% The average rate of employers in the same industry (NAICS sector); 1.00% in every sector for 2026. An employer that gives no business activity at registration gets the highest industry rate. Surcharges includedSource: Alaska DOLWD, Alaska Unemployment Insurance Tax Rates for New (Industry) Employers, 2026 (opens in a new tab), checked October 5, 2026

Open the account: Alaska payroll tax registration

Alaska has no paid leave program funded through payroll.

Alaska employer rules

Employment law applies where the employee works, so these follow the employee into Alaska.

Final pay
Fired: Within three working days after termination Quit: By the next regular payday that is at least 3 days after the employer receives notice of the quitSource: Alaska Statutes §23.05.140, Pay periods; penalty (opens in a new tab), checked October 6, 2026
Pay frequency
Monthly or semi-monthly pay periods, at the employee's election; monthly if agreed in an annual initial employment contract.Source: Alaska Statutes §23.05.140, Pay periods; penalty (opens in a new tab), checked October 6, 2026
Pay notice
In writing at hire: the rate of pay and the day and place of payment; any change by the payday before it takes effect. May be given by a conspicuous posting at the workplace.Source: Alaska DOLWD, Wage and Hour Pamphlet 100 (October 2025), AS 23.05.160 (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: Alaska Statutes 25.27.075, Employment information (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandateSource: Alaska State Legislature, full-text search for "E-Verify" (statutes, administrative code, bills, journals, minutes, 1993 to 2026) (opens in a new tab), checked October 5, 2026
Sick leave
Paid sick leave required, from the first employee.Source: Alaska DOLWD, Minimum Wage and Paid Sick Leave FAQ (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Alaska, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Alaska

WORKLIO HCM

Payroll for employees who work from home in another state

We help open state accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Worklio HCM calculates, deposits and files your payroll taxes in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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