Washington Payroll & Paycheck Tax Calculator
Managing payroll in the Evergreen State shouldn't feel like navigating Seattle traffic in the rain. From Spokane to the Sound, our Washington Payroll Tax Calculator makes employee calculations crystal clear. While there's no state income tax to worry about, you still need to handle paid family leave, workers' compensation, and various local requirements—all simplified with our tool.
Washington Payroll Tax Steps
Washington’s lack of state income tax might make payroll seem as easy as grabbing coffee at Pike Place Market, but don’t be fooled. Between mandatory paid leave programs, some of the nation’s highest workers’ comp rates, and local taxes in Seattle and other cities, there’s plenty to manage. Our calculator helps you navigate Washington’s unique payroll landscape, ensuring accurate calculations from the Columbia River to the Cascade Mountains.
Here are some key steps you’ll have to take to make smarter payroll decisions.
Step #1: Register with Washington Employment Security Department
Even without state income tax, you'll need to register with the Employment Security Department (ESD) for unemployment insurance and Paid Family and Medical Leave (PFML). Washington's SecureAccess Washington (SAW) portal streamlines registration. You'll also need a separate business license and UBI number from the Department of Revenue.
New employers pay 2.0% unemployment tax on the first $70,900 of each employee's wages—the second-highest wage base in the nation.
Step #2: Navigate Washington's Unique Form Requirements
The Evergreen State's paperwork focuses on programs other states don't have:
- Federal W-4 forms for withholding (no state form needed!)
- Federal forms from the IRS: • Form 941 (Quarterly federal tax return) • Form 940 (Federal Unemployment Tax, FUTA) • W-2 and 1099 (Year-end wage reporting)
- New Hire Reports: Submit within 20 days to DSHS
- Workers' Compensation: Through L&I, required for all employers
- Quarterly tax and wage reports to ESD
- PFML reporting and premium collection
- Local tax registrations (Seattle, Tacoma, etc.)
Several Washington cities have their own business taxes and requirements, adding complexity despite no state income tax.
Step #3: Understand Washington's Minimum Wage and Overtime Rule
Washington's minimum wage is $16.66 per hour as of 2025—among the highest in the nation. There's no tip credit allowed, meaning tipped employees must receive the full minimum wage before tips. Agricultural workers have specific exemptions and different requirements.
Washington follows federal overtime rules: 1.5x regular pay after 40 hours per week. However, the state has additional requirements for certain industries, including healthcare and public works projects. No daily overtime requirements exist statewide.
Step #4: Meet Washington's Pay Period and Leave Requirements
Washington doesn't mandate specific pay frequencies, but employers must establish regular paydays. Most choose weekly, bi-weekly, or semi-monthly schedules. Monthly payment is acceptable for exempt employees.
For final paychecks, Washington law is strict: terminated employees must be paid immediately at the time of termination. Employees who quit must receive final wages on the next regular payday.
Washington mandates Paid Family and Medical Leave (PFML), providing up to 16 weeks of paid leave (18 for pregnancy complications). The state also requires paid sick leave—1 hour for every 40 hours worked.
Step #5: Use our Simple Washington Payroll Calculator
Despite no state income tax, Washington payroll includes several unique elements:
- Federal income tax withholding
- PFML premiums (0.74% split between employer and employee)
- Workers' compensation premiums (varies by industry)
- Local taxes (Seattle payroll tax, etc.)
- FICA taxes (Social Security and Medicare)
- Unemployment taxes (FUTA and state UI)
Our calculator handles all these components, providing clear breakdowns of deductions and net pay.
Step #6: File Reports and Pay Washington's Various Obligations
Washington employers manage multiple filing requirements:
- Quarterly tax and wage reports to ESD
- PFML premium payments (quarterly)
- Workers' compensation reports and payments to L&I
- Federal tax deposits and returns
- Local tax filings where applicable
Without state income tax withholding, you can focus on getting these other obligations right. After about 18 months, unemployment rates adjust based on experience, ranging from 0.0% to 5.4%.
Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.