Employer of Record for Washington

Guide to Hiring Employees in Washington

Your guide to hiring employees in Washington, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Washington through Playroll.

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Capital City

Olympia

Timezone

PST

(

GMT-8

)

Paid Leave

Up to 12 Weeks

Income Tax

No personal income tax

Employer Tax

40.89%

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How to Hire Employees In Washington

Hiring in Washington for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Washington:

  • Establishing a local entity: Creating a legal entity in Washington allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Washington’s labor laws, helping you hire in Washington without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Washington’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Washington has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Washington.

Complying with Washington specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Washington, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Washington has no state income tax, allowing employees to take home more pay.

The state boasts a highly skilled workforce, especially in tech and aerospace industries.

Business incentives and support make it an attractive place for companies to expand.

Its natural beauty and urban hubs draw diverse, talented professionals.

Key Things to Know About Hiring in Washington

In Washington, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Washington.

Do I Need an EIN or Payroll Tax Number To Employ in Washington?

Yes, you need specific registrations, including an Employer Identification Number (EIN) and a Washington State Unified Business Identifier (UBI) or Payroll Tax Number, to employ workers in Washington.

Working Hours in Washington

40 hours per week, 8 hours per day for a standard 5-day workweek

What Is Considered Full-Time Employment in Washington?

State laws do not define full-time employment. However, most employers consider 40 hours per week as full-time employment.

Probation Period in Washington

In Washington, there are no specific laws mandating or regulating probationary periods for employees. However, employers commonly use probationary periods as part of their hiring policies. Probationary periods in Washington are often 30, 60, or 90 days but can vary based on the employer's discretion.

Labour Laws in Washington

Minimum Wage in Washington

Washington's statewide minimum wage is $16.28 per hour, effective January 1, 2024. In some cities, like Seattle, the minimum wage is higher, with large employers required to pay $19.97 per hour.

Overtime in Washington

Washington State has robust overtime laws. Employees must receive 1.5x their regular rate for hours worked over 40 per week. Washington has no daily overtime requirement.

Employees can be exempt if they:

  • Earn more than the state or federal exemption threshold
  • Perform executive, administrative, or professional duties

In Washington, the salary threshold for exemption is:

  • Small Employers (1-50 employees): $1,101.80 per week ($57,293 annually)
  • Large Employers (51+ employees): $1,259.20 per week ($65,478 annually)

Washington's Anti-Discrimination Laws

Washington has comprehensive anti-discrimination laws designed to protect employees and job applicants from unfair treatment in the workplace. The Washington Law Against Discrimination (WLAD) prohibits discrimination based on:

  • Race or Color
  • National Origin
  • Sex or Gender
  • Marital Status
  • Age
  • Disability
  • Religion
  • Military or Veteran Status
  • Use of a Service Animal
  • Genetic Information
  • HIV or Hepatitis C Status
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Onboarding New Hires in Washington

We can help you get your new employee started in Washington fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Washington

Payroll Cycle in Washington

Employers in Washington can pay employees on any of the following schedules:

  • Weekly
  • Biweekly (every two weeks)
  • Semi-Monthly (twice a month)
  • Monthly

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Washington Employment Taxes

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Washington. Understanding the tax obligations for both employers and employees is crucial when operating in Washington's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Washington. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

Washington employers contribute to Unemployment Insurance (0.3% - 10.6%) and Workers’ Compensation Insurance.

Employment Tax Type Tax Rate
Unemployment Insurance Ranges from 0.3% to 10.6%, based on the employer's experience rating.
Workers’ Compensation Varies by industry classification; for example, private employers experienced a 7% rate reduction effective July 1, 2024.
Social Security As per federal legislation
Medicare As per federal legislation

*Note: For Paid Family and Medical Leave, the total premium rate is 0.8% of an employee's gross wages up to the Social Security cap ($160,200). Employers cover 27.24% of this premium, while employees cover the remaining 72.76%. Additional information surrounding Washington's State Unemployment Tax can be found here.

Employee Payroll Tax Contributions

Employees in Washington pay federal Social Security and Medicare taxes. Some municipalities may impose local income taxes.

Employee Payroll Tax Contribution Tax Rate
Unemployment Insurance Employees are not required to pay UI taxes.
Social Security As per federal legislation
Medicare As per federal legislation
Local Income Tax Varies by municipality; typically ranges from 1% to 3%.

Tax Due Dates in Washington State

Washington does not impose a personal income tax; therefore, residents are not required to file a state income tax return

How To Comply With Washington State Payroll Taxes

Employers in Washington must withhold contributions for state-paid Family and Medical Leave (FML) and Paid Sick Leave. The Unemployment Insurance (UI) tax rates range between 0.25% and 6.0% on the first $67,600 of wages. Employers need to file quarterly reports with the Washington Employment Security Department.

Pension in Washington State

In Washington, private-sector employees typically do not have access to state-administered pension plans.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Washington tailored to your needs.

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Paid and Unpaid Leave Policies in Washington

Is Vacation Leave Mandatory in Washington?

Vacation leave is not mandatory in Washington.

What Are Mandatory Leave Entitlements in Washington?

Below are the mandatory leave entitlements for full-time employees in Washington.

Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
Paid sick leave 1 hour of paid sick leave for every 40 hours worked. Yes Paid (Full) Employees are eligible to use accrued paid sick leave 90 calendar days after starting employment
Paid Family and Medical Leave 12 weeks Yes Paid (Full) Employees who have worked at least 820 hours in Washington over the qualifying period.
Family and Medical Leave Act As stipulated by federal FMLA legislation Yes Paid (Full) In accordance with federal FMLA eligibility
Pregnancy and Parental Leave As stipulated by federal FMLA legislation Yes Unpaid unless covered under FMLA or PFML In accordance with federal FMLA eligibility
Military Leave As stipuated by Uniformed Services Employment and Reemployment Rights Act (USERRA) Yes Unpaid Employees who serve in the U.S. armed forces or state militia
Domestic Violence Leave Reasonable duration Yes Unpaid unless covered under FMLA or PFML Victims of domestic violence, sexual assault, or stalking
Jury Duty Leave Sufficient leave to fulfill duties Yes Unpaid unless covered under FMLA or PFML All employees, upon presenting a jury summons to the employer.

Paid Time Off in Washington

In Washington State, Paid Time Off (PTO) is not mandated by state law, but employers may offer it at their discretion. Washington does, however, require specific types of leave, such as paid sick leave and paid family and medical leave (PFML), which are often integrated into PTO policies by employers.

Maternity Leave In Washington

  • Mothers receive up to 12 weeks for parental leave to bond with a new child within the first year of birth or placement (adoption or foster care).
  • Employees with pregnancy complications may qualify for up to 16 weeks of combined family and medical leave. In cases involving both pregnancy complications and parental leave, employees may be eligible for up to 18 weeks of paid leave.
  • Employees can receive up to 90% of your weekly pay, up to the maximum, which is updated yearly. For 2024  the maximum was $1,456 / week.

Paternity Leave In Washington

Paternity leave is encompassed under the Paid Family and Medical Leave (PFML) program, which provides up to 12 weeks paid time off for various family and medical reasons, including bonding with a new child. Employees can receive up to 90% of your weekly pay, up to the maximum, which is updated yearly. For 2024  the maximum was $1,456 / week.

Sick Leave In Washington

Paid Sick Leave law, effective since January 1, 2018, mandates that employers provide paid sick leave to their employees. Employees accrue at least one hour of paid sick leave for every 40 hours worked. This accrual begins on the first day of employment. Employers must allow employees to carry over up to 40 hours of unused paid sick leave to the following year. Employers are prohibited from retaliating against employees for using paid sick leave.

Military Leave in Washington

Applies to employees serving in the U.S. Armed Forces, Reserves, National Guard, and other uniformed services. Employers are required to reemploy workers in their civilian jobs upon return from military service.

Jury Duty in Washington

Employers must grant employees the necessary time off to serve on a jury when summoned. Employers may not deprive an employee of employment, threaten, coerce, harass, or deny promotional opportunities because the employee receives a summons, responds to it or serves as a juror.

Parental Leave In Washington

Parental leave is primarily covered under the Paid Family and Medical Leave (PFML) program and supplemented by federal and state laws, ensuring employees have the right to take time off to bond with a new child. Employees are entitled to up to 12 weeks of paid leave to bond with a newborn, adopted, or foster child within the first year of birth or placement.

It’s Easy To Manage Benefits For Employees In Washington With Playroll

Benefit Requirements for Employers in Washington

Washington requires workers' compensation insurance, paid sick leave, and family and medical leave. Employers with 50 or more employees must comply with the federal Affordable Care Act (ACA).  Providing benefits like vacation time and health insurance is standard for attracting talent.

Employee Benefits For Washington  

Competitive benefits are essential for attracting and retaining top talent in Washington. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Washington packages include:  

  • Pension or 401(K)
  • Vision Insurance
  • Life Insurance
  • Medical Insurance
  • Dental Insurance
  • Health Savings Plan (HSA)
  • Flexible Spending Account (FSA)

Are Employers Required To Provide Health Insurance in Washington?

Under the federal Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees must offer health insurance that meets minimum essential coverage standards.

Do Part-Time Employees Get Benefits in Washington?

Part-time employees are entitled to certain mandatory benefits like paid sick leave, PFML, and minimum wage. Additional benefits, such as health insurance or retirement plans, depend on the employer’s policies.

Are Employers Required To Offer 401k in Washington?

Employers in Washington are not required to offer 401(k) or retirement plans.

Employment Termination Protocols in Washington

Termination Process in Washington

  • The termination process is governed by the principle of "at-will" employment, meaning that either the employer or the employee can end the employment relationship at any time, for any reason, or for no reason at all, provided that the reason is not illegal.
  • Terminations based on race, color, national origin, sex, sexual orientation, gender identity, age, disability, religion, marital status, or military status are prohibited under the Washington Law Against Discrimination.
  • Washington law requires that terminated employees receive their final paycheck by the next regularly scheduled payday.

Notice Period in Washington

A notice period is not required.

Severance in Washington

Severance pay is not required by law.

Hiring Employees in Washington with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Washington's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Washington's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Washington's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Washington's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by [State]'s labor laws, such as health insurance, pension contributions, and statutory leave.

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FAQS

FAQs About Hiring In Washington

What is the minimum wage in Washington?

As of January 1, 2024, Washington’s minimum wage rates are:

  • $16.00 per hour.
  • Applies across all sectors.

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