Key figures
Washington payroll
2026, with sources
Three premiums on top of UI
Washington has no income tax withholding, but a Washington paycheck carries three state programs besides unemployment insurance. Paid Family & Medical Leave is 1.13% of wages up to the Social Security wage base ($184,500 in 2026), split 71.43% employee and 28.57% employer; employers with fewer than 50 employees in Washington don’t have to pay the employer share. WA Cares, the long-term care program, is 0.58% of all wages, paid by the employee. Workers’ compensation is bought from L&I and partly deducted from pay.
Example: a two-person startup hires its first engineer in Seattle at $180,000. The engineer’s 2026 paycheck deductions include about $1,453 of PFML premium (71.43% of 1.13% × $180,000) and $1,044 of WA Cares, with no state income tax. The company, under 50 employees, owes no PFML employer share, pays UI on the first $78,200 at 115% of its industry average, pays L&I premiums by the hour, and owes Seattle’s $21.30 minimum for any hourly staff.
Wage-and-hour differences
The exempt salary threshold is the one that catches startups: an early operations hire on $75,000 is non-exempt in Washington, whatever their title, and earns overtime.
- Minimum wage $17.13 in 2026; Seattle $21.30.
- Exempt employees must earn at least $80,168.40 a year (2.25× minimum wage), rising to 2.5× by 2028.
- Paid sick leave of one hour per 40 worked, for all employees.
- Final pay by the end of the established pay period.
- Salary ranges in job postings at 15+ employees.
Deadlines
- Within 20 days of hireReport new and rehired employees to DSHS Division of Child SupportNew hire report
- QuarterlyUnemployment insurance and Paid Leave / WA Cares wage reports and premiumsESD quarterly report
- QuarterlyWorkers’ compensation hours and premiumsL&I quarterly report
The federal baseline
This page covers what Washington adds. The federal rules underneath it apply here too.
Common questions
When is a final paycheck due in Washington?
At the end of the established pay period. Under RCW 49.48.010, wages due to an employee who is discharged or quits are paid at the end of the pay period in which they leave, not immediately.
Do we have to buy workers’ comp from the state?
Yes, unless you are a self-insured employer. Washington is one of the few states where private insurers can’t sell workers’ compensation: coverage comes from L&I’s state fund, premiums are based on hours worked by risk class, and employees pay part of the premium through payroll deduction.
Do our job postings need salary ranges?
Employers with 15 or more employees, counted everywhere, must include a wage scale or salary range and a general description of benefits and other compensation in any posting that could be filled by a Washington-based worker, including remote roles.
Payroll next door
- IDIdaho payrollIdaho payroll is lean: 5.3% flat withholding, a 1.000% standard UI rate on $58,300, workers’ comp from employee one, the federal minimum wage and no paid leave premiums.
- OROregon payrollOregon payroll layers state withholding, 2.4% new-employer UI on $56,700 and 1% Paid Leave Oregon with transit taxes and, around Portland, Metro and Multnomah County income taxes.
How Washington compares
- No tax on wagesStates with no state income tax on wagesWashington: no state income tax on wages. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programWashington: state paid leave or disability program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesWashington: city, county or district taxes on wages. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- RunwayBurn rate and runway: how to calculate them correctlyGross burn, net burn and months of runway, done the way an investor checks them: from cash, averaged, and with the hires you’ve already committed to.
More of the Washington guide
- AccountingAccounting and state tax in WashingtonCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in WashingtonSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in WashingtonPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in WashingtonRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in WashingtonCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- L&I — Washington’s minimum wage going up to $17.13 an hour in 2026
- ESD — Taxable wage base
- ESD — How we determine tax rates
- ESD — Paid Family & Medical Leave premium rate increases to 1.13% in 2026
- Paid Leave WA — Estimate your Paid Leave and WA Cares payments
- City of Seattle Office of Labor Standards — Minimum wage
- L&I — Paid sick leave minimum requirements
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.