What payroll tax accounts should new businesses register for?

Payroll Tax Accounts for New Businesses in Alaska

When starting a business in Alaska, it is essential to register for the appropriate payroll tax accounts to ensure compliance with state and federal requirements. Proper registration supports accurate tax withholding, reporting, and remittance.

Key Payroll Tax Accounts to Register

• Federal Employer Identification Number (EIN): Obtain this from the IRS. It is required for all payroll tax reporting and withholding.
• Alaska Department of Labor and Workforce Development (DOLWD) - Unemployment Insurance (UI) Account: Register for an unemployment insurance account to report and pay state UI taxes. This is mandatory for most employers with employees in Alaska.
• Alaska Department of Revenue - Withholding Tax Account: Alaska does not have a state income tax, so there is no state withholding tax account to register for payroll withholding purposes.

Additional Payroll Considerations

• Federal Payroll Taxes: Register for Social Security, Medicare, and federal income tax withholding through the IRS using your EIN.
• Workers’ Compensation Insurance: While not a tax, securing workers’ compensation insurance is a critical payroll-related compliance step in Alaska.
• Recordkeeping and Reporting: Maintain accurate payroll records for all employees and submit quarterly wage and tax reports to both federal and state agencies as required.

As of 2026, ensure your business stays updated with any changes in Alaska’s unemployment insurance rates and reporting requirements to maintain compliance and avoid penalties.