State guide
How to Register for Washington Payroll Taxes
Let a dedicated tax manager open your ESD, L&I and Paid Leave accounts and follow up until every number is issued. Or use the step-by-step guide below to do it yourself.
Last updated:
At a glance
No state income tax withholding
1 application: Business License "Hire Employees"
1.13% Paid Leave and 0.58% WA Cares
$78,200 UI wage base for 2026
Done for you
Four programs, three agencies. Want it handled?
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Washington that covers ESD, L&I and Paid Leave, followed up until every account is open.
- A named tax manager who knows how the Washington programs fit together
- Business License Application "Hire Employees" set up correctly with you
- Follow-up with ESD and L&I until both accounts are confirmed
- Account details delivered ready for your first quarterly report
Hands-on help from a real person you can call. Available alone or with managed payroll.
Quick answer
Washington payroll tax registration at a glance
Washington has no state income tax withholding, but it has more payroll programs than most states. One Business License Application with the Department of Revenue, marked "Hire Employees," registers you with the Employment Security Department (ESD) for unemployment insurance and with Labor and Industries (L&I) for workers' compensation.
Paid Family and Medical Leave (1.13% of wages in 2026) and WA Cares (0.58%) are reported and paid every quarter, with WA Cares reporting built into Paid Leave. New employers pay UI at 115% of their industry's average rate on the first $78,200 of each employee's 2026 wages.
What applies
Which Washington payroll programs apply to you
No income tax, but four programs to set up.
| Program | Who it applies to |
|---|---|
| Unemployment insurance (ESD) | Required if you employ one or more persons. Officers of for-profit corporations working in Washington are exempt unless the employer elects coverage |
| Workers' compensation (L&I) | Set up through the same Business License Application. L&I then contacts you to open the account |
| Paid Family and Medical Leave (ESD) | Required for employers with employees working in Washington, including out-of-state companies |
| WA Cares Fund | All working Washingtonians participate unless approved for an exemption. Employers collect the premium from pay |
- No income tax withholding. Washington does not currently have an individual income tax. A new 9.9% income tax on individuals with adjusted gross income over $1 million takes effect January 1, 2028, with first returns due in 2029.
How to register
How to register through the Business License Application
DOR's application is the front door for both ESD and L&I.
- Make sure the business is registered. You need a registered business to hire employees in Washington.
- File a Business License Application with the Business Licensing Service and select "Hire Employees" (or "Hire Employees under 18" if you will hire minors, which also covers the minor work permit).
- Let the application fan out. It registers you with L&I for workers' compensation and with ESD for unemployment insurance. Each agency sends its own account information and quarterly reporting instructions.
- Watch for L&I. L&I contacts you, usually within one week of DOR processing the application, to set up your workers' compensation account.
- Set up Paid Family and Medical Leave. ESD asks for a copy of your Business License Application when you sign up.
- Repeat for each location. You need L&I and ESD employee accounts for every location that has employees.
Prefer to delegate?
One application, then a lot of waiting and follow-up
The application is a single form, but the follow-through spans ESD, L&I and Paid Leave, each with its own account and quarterly report.
On your own
- Tracking L&I contact, ESD access and Paid Leave sign-up
- Separate accounts for every location
- Learning which premiums you collect and which you pay
With your PayAdvisors tax manager
- Your tax manager coordinates every agency
- Location accounts handled with you
- You get clear account details, ready to report
Get it done by a dedicated tax manager.
Have ready
What to have before you apply
These details shape the application and your agency accounts.
- Your registered business and Unified Business Identifier (UBI) from DOR
- The "Hire Employees" purpose on your Business License Application, plus minor work permit details if you hire anyone under 18
- Every Washington location where employees will work
- A copy of the Business License Application for your Paid Leave sign-up
- Whether corporate officers will opt in to UI coverage (a Voluntary Election Form goes to ESD)
Accounts
What Washington sets up for you
Expect separate accounts from ESD and L&I.
- ESD unemployment insurance account, managed in EAMS. Paid Leave is a separate employer account (the Paid Family and Medical Leave service in Secure Access Washington), and WA Cares reports go on the Paid Leave report.
- L&I workers' compensation account, with a rate notice that lists your hourly employer and employee rates by risk class.
- A UI rate notice each December for the next calendar year, in EAMS or by mail.
2026 rates
Washington payroll rates and premiums for 2026
Some of these come from employee pay, some from you.
| Program | 2026 figure |
|---|---|
| UI wage base | $78,200 per employee |
| New employer UI rate | 115% of the average rate for your industry, with a 1% federal minimum |
| UI rate pieces | Experience rate capped at 5.4%, social cost rate capped at 1.22%, plus 0.02% to 0.03% employment administration fund |
| Paid Family and Medical Leave | 1.13% of gross wages (not including tips) up to $184,500. Employees pay 71.43%, and employers with 50 or more employees pay up to 28.57% |
| WA Cares Fund | 0.58% of gross wages, collected from employees. Employers are not required to pay it |
| Workers' compensation | Hourly rates by risk class. You may withhold the employee portion shown on your L&I rate notice |
Pitfalls
Washington payroll mistakes we see
Mostly quarterly reporting and premium splits.
- Skipping a zero quarter. ESD and L&I reports are due every quarter even with no active employees or hours, and missed reports bring penalties and interest.
- Assuming a small business owes nothing for Paid Leave. Under 50 employees you skip the employer share, but you still collect the employee premium or pay it for them.
- Catching up missed premiums later. Employers cannot collect missed Paid Leave premiums in later pay periods, and from August 1, 2026 Paid Leave applies penalties and interest to late reports and balances.
- Opening one account for many sites. Each location with employees needs its own L&I and ESD accounts.
- Covering officers by accident. For-profit corporate officers are exempt from UI unless you file a voluntary election.
Also required
Other Washington employer rules
These start at your first hire.
- New hire reporting. Report new and rehired employees to the DSHS Division of Child Support within 20 days of the start date, regardless of age or hours.
- Minimum wage. $17.13 an hour statewide in 2026. Some cities have higher rates and different rules. See L&I.
- WA Cares exemptions. Employees apply to ESD for their own exemption and, if approved, give you a copy of the approval letter.
Quarterly cycle
Washington filing calendar
Washington runs on quarterly reporting across agencies.
- ESD quarterly tax and wage report: due the last day of the month after each quarter, online or by mail.
- Paid Leave and WA Cares: report wages and hours and pay premiums every quarter. WA Cares reporting runs through Paid Leave.
- L&I quarterly report: report hours and pay workers' compensation premiums each quarter.
- UI rate: your new rate arrives each December and applies to the whole next year.
Official links
Washington agency links
Go to the source for forms and accounts.
Washington registration questions
Does Washington have state payroll income tax withholding?
No. Washington does not currently have an individual income tax, so there is no state withholding account.
How do I register for payroll taxes in Washington?
File a Business License Application with the Department of Revenue and choose "Hire Employees." That registers you with ESD for unemployment insurance and L&I for workers' compensation.
What is the Paid Family and Medical Leave rate for 2026?
1.13% of gross wages (not including tips) up to $184,500. Employees pay 71.43%. Employers with 50 or more employees pay up to 28.57%.
What is the WA Cares premium?
0.58% of each employee's gross wages, collected from the employee, not paid by the employer.
What UI rate does a new Washington employer pay?
For 2026, 115% of the average rate for your industry, at least 1%, on the first $78,200 of wages.
Do S corporation officers pay Washington unemployment tax?
Officers of for-profit corporations are exempt from UI unless the employer elects coverage. Paid Leave, WA Cares and workers' compensation rules still need checking, and a dedicated tax manager can sort them out as part of our S corp payroll package.
Do I file reports if I had no payroll this quarter?
Yes. Washington requires quarterly reports even with no active employees or hours.
When does L&I set up workers' compensation?
L&I usually contacts you within a week of DOR processing your Business License Application.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this guide tax advice?
No. It summarizes official Department of Revenue, ESD, L&I, WA Cares and DSHS information. For your situation, talk to your CPA or tax advisor.
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Next step
Get your Washington payroll accounts open
A dedicated tax manager handles the "Hire Employees" setup, chases ESD and L&I until both accounts are live and sends you what you need to file. Tell us when you plan to hire and we take it from there.
About this guide
Last verified and sources
Last verified October 26, 2026 against the Washington Department of Revenue, Employment Security Department, Paid Leave and WA Cares programs, Department of Labor and Industries and DSHS. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
- California payroll tax registration guide
- Arizona payroll tax registration guide
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- Florida payroll tax registration guide
- New York payroll tax registration guide
- Georgia payroll tax registration guide
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- Illinois payroll tax registration guide
- Colorado payroll tax registration guide
- Ohio payroll tax registration guide
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- New Jersey payroll tax registration guide
- Virginia payroll tax registration guide
- Michigan payroll tax registration guide
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- Tennessee payroll tax registration guide
- Indiana payroll tax registration guide
- Missouri payroll tax registration guide
- Maryland payroll tax registration guide
- Oregon payroll tax registration guide
- Utah payroll tax registration guide
- Nevada payroll tax registration guide
- Wisconsin payroll tax registration guide
- Alabama payroll tax registration guide
- Minnesota payroll tax registration guide
- South Carolina payroll tax registration guide
- Louisiana payroll tax registration guide
- Kentucky payroll tax registration guide
- Oklahoma payroll tax registration guide
- Connecticut payroll tax registration guide
- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
- New Mexico payroll tax registration guide
- Idaho payroll tax registration guide
- Hawaii payroll tax registration guide
- Montana payroll tax registration guide
- Alaska payroll tax registration guide
- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
Sources
- Washington Department of Revenue, Hiring Employees
- Washington Department of Revenue, Unemployment Insurance state endorsement
- Washington Employment Security Department, How We Determine Tax Rates
- Washington Employment Security Department, Employer's Guide to Paying Taxes
- Washington Employment Security Department, How to File Your Quarterly Tax and Wage Reports
- Washington ESD news release, Paid Family and Medical Leave premium rate increases to 1.13% in 2026
- Washington Paid Leave, Estimate your paid leave payments (employer premiums)
- WA Cares Fund, The employer's role in WA Cares
- Washington L&I, Your Workers' Compensation Rate Notice (F225-004-000, PDF)
- Washington L&I, Minimum Wage
- Washington DSHS, New Hire Reporting
- Washington Department of Revenue, Income Tax