In Alaska, the minimum wage is $10.34. That’s $3.09 more than the Federal Hourly Minimum Wage of $7.25 per hour.
Almost all employees in Alaska must be paid the minimum wage as required by state law.
There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices.
Some college and high school students that partake in a work-learn program provided by a college or university are exempt from Alaska’s minimum wage requirements, as are many volunteers engaged in charitable and educational activities, for example, hold exempt status.
Also exempt are agricultural, some workers in the shrimp industry, and domestic workers such as babysitters. But there are more exempt categories. Read more below.
Overtime hours are those hours that an employee works in excess of 40 during a regular work week. Qualifying overtime hours are compensated at a rate of 1.5 times an employee’s usual hourly pay, so that will be at least $15.51 per hour.
Let’s check out our Paycheck Calculator. With the help of this wonderful calculator, you can transform your hourly wage into weekly, monthly, or yearly earnings.
- Alaska Paycheck Calculator
- Minimum Wage in Alaska
- Minimum Wage and Income Tax in Alaska
Alaska Paycheck Calculator
How to use this Alaska paycheck calculator
- First, enter your hourly earnings.
- Second, enter your number of working hours per week.
- Then, our calculator shows you how that translates to weekly, monthly, and annual earnings.
How our Alaska paycheck calculator works
For many people, understanding their earnings is a rather simple process. Every couple of weeks, they’ll receive their paychecks, and at the end of the calendar year, they’ll get tax forms.
For these folks, it may be a simple process, but for people that are working on an hourly basis, things may be more challenging.
|Annual wages||= hourly pay, times
40 hours, times 52 weeks.
|Monthly wages||= annual pay, divided by 12 months.|
|Weekly wages||= hourly pay, times 40 hours.|
Minimum Wage in Alaska
In Alaska, the minimum wage is $10.34 an hour; this translates to $414 per week (at 40 hours) and $1794 per month.
It also translates to annual earnings of $21,528.
These results are generated by multiplying the base hourly salary by the number of hours, weeks, or months you work on a yearly basis, assuming that you’re working 40 hours per week.
Minimum wage exemptions in Alaska
The following is not a complete overview of worker groups that may not receive the minimum under Alaska’s Wage and Hour Act, but it includes the main categories:
- Agricultural and seasonal workers, individuals in shrimp picking, workers in domestic services, such as babysitters, workers in private homes, individuals in aquatic life, newspaper deliverers, and individuals employed in the hard rock minerals industry may be exempt.
- Persons employed by the federal or local government and persons engaged voluntarily in nonprofit, charitable, religious, cemetery, and educational organizations, are exempt from Alaska’s minimum pay requirements as well.
- Executives, professionals, administrators, outside salespersons, salespeople working on a commission basis, and some computer experts are exempt.
- Voluntary workers providing emergency medical, fire department or ski patrol services are exempt, as are some individuals employed by motor vehicle, truck, or agricultural dealers.
- Students partaking in work-study projects from universities may earn 85% of Alaska’s minimum wage, so $8.79, provided the job is part-time for no more than 20 hrs/week.
Minimum wage and take-home paycheck in Alaska
If you earn minimum wage in Alaska, so $10.34 per hour, your hourly net pay is $9.12.
It means that if you work 40 hours per week, your weekly check is a gross of $414, and your take-home paycheck is $363.
Then, the monthly gross pay is $1794, and the take-home paycheck is $1574.
Annually, you make $21,528, but the take-home paycheck is $18,892.
Minimum Wage and Income Tax in Alaska
If you make a minimum wage of $10,34 an hour and work 40 hours a week, your annual income will be $21,528, and your tax will be $$2,636.
This is 12.2%.
What is included in the income tax?
The taxes taken into account in this calculation consist of Federal Tax, State Tax, Social Security Tax, and Medicare costs (FICA Tax) based on an annual income of $21,528.
Tax paid by your employer
Your employer also pays taxes on your salary. It costs the employer $172 to pay you a monthly salary of $1,794, which translates to $2,064 annually. As you see, the salary and costs associated with it are complicated. It’s not what you receive and pay in taxes. Your employer also pays your taxes.
What is work time?
When we talk about work time, we refer to all the time you spend on activities related to your professional position. We assume that you work 40 hours per week.
When speaking of work-related time, we also refer to work hours connected to all types of work-related activities, including travel time (not commuting time) for professional training and/or education, minor work breaks, or time spent on attending and traveling to meetings and/or seminars.
Overtime in Alaska
As stated before, Alaska employers employ their workers for a workweek of 40 hours and for eight hours a day. If an employee works in excess of these standards, the employer must compensate the employee at a rate of 1.5 times the usual rate of pay, so $15.51 an hour.
What are Standard Deduction and Refund?
The standard deduction is a specific dollar amount that reduces your taxable income. It means that a certain amount of your income is tax-free.
For the 2022 tax year, the standard deduction is $12,950 if you are single and $25,900 for married couples.
When do I get a tax refund?
Deductions are a very important factor in your final income because you can receive a refund from the IRS. The IRS typically issues refunds in less than 21 days after your e-filed return is accepted.
How to apply for a refund
The best way is to apply for a refund online, using professional tax software such as TaxAct or TurboTax. When you file online, it typically takes 24 to 48 hours for the IRS to accept your return, and then you need to wait up to 21 days to receive it. To avoid delays, make sure that your tax return form is error-free and includes your signature, etc.
The US federal minimum wage
If you work in a state with a higher minimum hourly wage than the federal minimum, you will earn at least that state’s minimum wage. And when you are employed in a state that has no minimum wages, or when you work in a state that has a minimum hourly wage under $7.25, you will always earn no less than the federal minimum hourly rate of $7.25.
Please note that this post doesn’t contain legal advice. If you have any questions about Alaska’s minimum wage policies or minimum wage compliance, consult a tax professional or a tax attorney.