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Alaska tax and labor law guide

Household employment requirements for families hiring a caregiver in Alaska

Finding helpful Alaska nanny tax information is not always easy. That’s why we’ve combined all the state and federal tax and labor law information you’ll need! Check out the information below that HomePay is here to help with.

Checklist for Alaska household employers

We know you’re busy so here’s a quick “to-do” list with links to extra details below.

Beginning of employment 

During employment 

Optional benefits for your employee

Ending employment

Beginning of employment 

Workers’ compensation

Household employers in Alaska are required to get coverage for workers’ compensation insurance. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. If families are unable to obtain coverage from a commercial carrier, they may purchase insurance through Alaska’s Assigned Risk Pool, which is administered by the National Council on Compensation Insurance (NCCI).

Employment contract

Household employers in Alaska are required to provide a written Employment Contract to their employee at the time of hire. The contract must include the employee’s hourly rate of pay, when paydays will occur and how the employee will be paid (i.e. Direct Deposit, mailed a check, etc.).

Employment posters 

Families in Alaska are required to notify their employee(s) of their rights by sharing these posters. 

During employment 

Minimum wage rate

The minimum wage in Alaska is currently $7.25/hour.

Alaska overtime requirements

  • Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
  • Live-in employees are not required to be paid overtime. 
  • Overtime is not required to be paid when work is performed on a holiday. 

Optional benefits for your employee 

Health insurance

Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.

Families with 2 or more employees have 3 options:

  1. Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).
  2. Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
  3. Purchase a policy through SHOP (Small Business Health Options Program). 

Visit our health insurance page for more information about these options.  

Mileage reimbursements

The current federal mileage reimbursement rate is $0.56 per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.

Ending employment 

Managing unused PTO 

Alaska household employers do not need to pay their employees for unused sick and/or vacation time.

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