Employee Cost: Alaska vs Utah (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Utah saves $1,034/employee/year

$66,624 in Alaska vs $65,590 in Utah

Alaska

$66,624

1.11x salary

Utah

$65,590

1.09x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component AK UT Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $942 $448 +$494
Workers' Compensation $1,050 $510 +$540
Total Employer Cost $66,624 $65,590 +$1,034

Tax Rate Comparison

Rate Alaska Utah
SUTA Rate Range 1.0% – 5.4% 0.1% – 7.0%
SUTA Typical Rate 2.0% 1.0%
SUTA Wage Base $47,100 $44,800
Workers' Comp Rate 1.75% 0.85%
State Income Tax No Yes

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Utah over Alaska saves $1,034 per employee per year in employer-side payroll costs alone. For a team of 10, that's $10,340 annually.

The biggest difference comes from workers' compensation rates — Alaska charges 1.75% vs Utah's 0.85%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary AK Total UT Total Difference
$30,000 $33,462 $32,892 +$570
$40,000 $44,602 $43,842 +$760
$50,000 $55,684 $54,740 +$944
$60,000 $66,624 $65,590 +$1,034
$75,000 $83,034 $81,865 +$1,169
$100,000 $110,384 $108,990 +$1,394
$125,000 $137,734 $136,115 +$1,619
$150,000 $165,084 $163,240 +$1,844

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of AK.

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