Payroll
New Employer Payroll Setup: Step-by-Step Checklist for 2026
Get your EIN, register with ESD and L&I, choose payroll frequency, and run your first payroll ? the complete checklist.
Practical guides on WA payroll taxes, ESD registration, PFML, WA Cares Fund, and wage laws ? written for small business owners, not accountants.
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Gusto, QuickBooks Payroll, Paychex, and ADP — compared honestly. Who each product is right for, where each falls short, and what to ask before you sign anything.
Get your EIN, register with ESD and L&I, choose payroll frequency, and run your first payroll ? the complete checklist.
Combined rate 0.9%, employer and employee shares, 50+ employee threshold, up to 18 weeks leave. Complete PFML guide.
WA statewide $16.28/hr, Seattle $20.76/hr for large employers. No tipped credit ? full minimum wage for all employees.
No income tax, but SUI, PFML, WA Cares Fund, and workers' comp through L&I. All WA employer obligations explained.
Get your EIN, register with ESD and L&I, choose payroll frequency, and run your first payroll ? the complete checklist.
Combined rate 0.9%, employer and employee shares, 50+ employee threshold, up to 18 weeks leave. Complete PFML guide.
WA statewide $16.28/hr, Seattle $20.76/hr for large employers. No tipped credit ? full minimum wage for all employees.
Combined rate 0.9%, employer and employee shares, 50+ employee threshold, up to 18 weeks leave. Complete PFML guide.
WA statewide $16.28/hr, Seattle $20.76/hr for large employers. No tipped credit ? full minimum wage for all employees.
No income tax, but SUI, PFML, WA Cares Fund, and workers' comp through L&I. All WA employer obligations explained.
Get your EIN, register with ESD and L&I, choose payroll frequency, and run your first payroll ? the complete checklist.
Combined rate 0.9%, employer and employee shares, 50+ employee threshold, up to 18 weeks leave. Complete PFML guide.
WA statewide $16.28/hr, Seattle $20.76/hr for large employers. No tipped credit ? full minimum wage for all employees.
Washington's economic reality test for worker classification. Misclassification penalties are severe. Here's how to get it right.
Gusto vs Paychex vs QuickBooks vs ADP ? detailed comparison for Washington small businesses.
Trustpilot ratings — public, updated continuously. ADP: 1.2/5 from 12,000+ reviews. Paychex: 1.3/5 from 4,000+ reviews.
"Called four times about a billing error. Each rep told me to call back. Still unresolved after six weeks."
"They misfiled our 941 and then charged us a correction fee. Support transferred me three times. Nobody owned the problem."
Pacific Data Services has been running payroll since 1969. They work with businesses from 1 to 500 employees. Three options: log into their system and run payroll yourself, send hours by phone or email and let PDS handle data entry, or use their system only for reports while they do everything else. You don't have to learn new software. That's a real option, not a sales line.
On pdspayroll.com — family-owned payroll company, not a national chain.
Gusto handles payroll calculations, tax filings, and direct deposit automatically. Trusted by 300,000+ small businesses. Start with a free trial — no credit card required.
On Gusto’s website — Washington Payroll Guide may earn a commission at no cost to you.
LegalZoom handles your Articles of Organization, registered agent, and operating agreement — all online. Trusted by 4M+ small business owners. Starts at $0 + state filing fees. (LegalZoom does not process payroll — see PDS or Gusto above for that.)
On LegalZoom’s website — Washington Payroll Guide may earn a commission at no cost to you.
General information only — not legal or tax advice. Tax rules and employment laws change; what's accurate today may shift by next year. For decisions specific to your business, run them by a qualified Washington attorney or CPA. They'll save you more than they cost.
Washington has no state income tax on wages. There's no withholding to set up, no state W-4, and no income tax returns for employees' wage income. A capital gains tax at 7% on gains above $270,000 was enacted and upheld by the Washington Supreme Court, but that doesn't affect payroll withholding for most employees. What Washington lacks in income tax complexity it more than makes up for in other payroll obligations: unemployment insurance, the Washington Cares Fund, and Paid Family and Medical Leave all require employer registration and ongoing contributions.
Washington's minimum wage for 2026 is $16.66/hr, one of the higher statewide rates in the country. Seattle has a higher local rate for large employers ($20.76/hr as of January 1, 2026). Other cities like SeaTac and Bellingham have their own local rates as well. If you're operating in Seattle, verify whether you're a "large employer" under Seattle's ordinance (500 or more employees nationally) or a small employer, as the rates differ. Tipped employees in Washington receive the full minimum wage—there's no tip credit allowed. Washington updates its statewide minimum wage each January 1 based on CPI.
Washington's unemployment insurance is run by the Employment Security Department (ESD). The SUI taxable wage base for 2026 is $72,800 per employee, the highest in the country. New employers pay a base rate of 1.0% for their first year. Experience-rated employers fall between 0.13% and 8.18%. With a $72,800 wage base, even a 1% rate means $728 per employee per year in SUI costs before experience adjustments. Quarterly SUI returns are filed through ESD's online portal. Register for an ESD account before your first payroll run.
Washington's Paid Family and Medical Leave (PFML) program is administered by ESD. For 2026, the total contribution rate is 0.92% of wages. Employees pay 71.4% of that rate (0.657%), and employers with 50 or more employees pay the remaining 28.6% (0.263%). Small employers under 50 employees aren't required to pay the employer share but must still withhold and remit the employee share. PFML contributions apply on wages up to the Social Security wage base ($176,100 for 2026). The Washington Cares Fund (WA Cares) is a separate long-term care insurance program; the employee premium is 0.58% on all wages with no cap. Both PFML and WA Cares deductions are remitted to ESD quarterly.
Federal obligations are standard: FICA at 7.65% each side, FUTA net 0.6%, Form 941 quarterly, and W-2s by January 31, 2027. Washington also has an L&I workers' compensation system where premium rates are set by occupation and employer's safety record. Premiums are based on hours worked, so reporting hours accurately to L&I each quarter is important for correct billing.
See our guides on Washington payroll taxes, PFML and WA Cares Fund contributions, and 2026 SUI rates and wage base for full details.
Complete WA compliance guide — $72,800 SUI wage base (highest in US), no income tax, PFML (0.92% total), WA Cares Fund LTC (0.58% employee), $16.66 minimum wage (Seattle: $19.97 for large employers).
Quarterly deadlines, line-by-line walkthrough, deposit schedules, how to amend with Form 941-X, and penalties for late filing.
Minimum wage, overtime thresholds, white-collar exemption tests, child labor rules, recordkeeping, and DOL audit triggers.
New hire, every-payroll, monthly, quarterly, and annual federal compliance tasks in one organized checklist.