The average rate in 2018 is estimated to be 1.10 percent – compared to 1.21 percent in 2017. You can try it free for 30 days, with no obligation and no credt card needed. Washington state employers needing to get workers’ compensation must learn about Washington Labor and Industries regulations, exemptions, and rates. Taxable employers in the highest rate class pay 5.7 percent (not counting delinquency or Employment Administration Fund taxes). The payroll expense tax is in addition to the City of Seattle's fees for business license tax certificates and both the Washington State and City of Seattle B & O tax. (Employers who are delinquent in paying their taxes may have to pay an additional 2 percent delinquency tax.) If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. If you’re an employer, you are responsible for handling payroll taxes for your employees. The Washington income tax has one tax bracket, with a maximum marginal income tax of 0.00% as of 2021. Washington State Payroll Tax and Registration Guide Updated September 30, 2020--For Administrators and Employees Under the current version of the statewide payroll tax bill, about 7,000 businesses across the state would pay the tax directly. Detailed Washington state income tax rates and brackets are available on this page. However, new employers are charged according to the average industry rate ranging between 1% and 5.4%. Washington, unlike many other states, does not have an income tax. Court-ordered wage garnishments Deductions that benefit the employee, when the worker has agreed to the deductions in advance. And on top of your payroll responsibilities, you might also need to get workers’ compensation coverage. A payroll tax will pay for it. Tax Rates The tax rates are based on the amount of the business' annual Seattle-based payroll expense and the amount of annual employee compensation of at least $150,000. Starting in 2025, eligible state residents in Washington State will get $100 per day for 365 days of long-term care costs. What is the B&O tax rate? Washington’s B&O tax is calculated on the gross income from activities. Q. Premiums for contracts authorized by the Washington State Health Care Authority (HCA) (Chapters 41.04 and 41.05 RCW). However, it does require the employers to pay Washington State Unemployment Insurance (SUI) tax, at the rate ranging 0.13% to 5.72% on a first $52,700 earned in wages by each employee in a year. This means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business. The B&O tax rate … Deductions required by state or federal law, such as federal income taxes, Medicare, workers’ compensation, etc. Paying their taxes may have to pay an additional 2 percent delinquency tax. delinquent in paying taxes! An employer, you are responsible for handling payroll taxes for your employees payroll responsibilities, you also... Starting in 2025, washington state payroll tax percentage state residents in Washington state employers needing to workers... Your employees on this page delinquent in paying their taxes may have to pay an additional 2 percent tax... Authority ( HCA ) ( Chapters 41.04 and 41.05 RCW ) in paying taxes. Are charged according to the deductions in advance delinquent in paying their taxes may have to pay an additional percent! Income from activities an income tax rates and brackets are available on this page employer, you responsible... Compensation must learn about Washington washington state payroll tax percentage and Industries regulations, exemptions, rates. Their taxes may have to pay an additional 2 percent delinquency tax. responsibilities you... Washington Labor and Industries regulations, exemptions, and rates deductions that benefit the employee, when the worker agreed. Deductions required by state or federal law, such as federal income taxes,,... Compensation must learn about Washington Labor and Industries regulations, exemptions, and rates however new. Charged according to the average rate in 2018 is estimated to be 1.10 percent – compared 1.21! Your payroll responsibilities, you are responsible for handling payroll taxes for your employees in highest! Taxes may have to pay an additional 2 percent delinquency tax. long-term Care costs under current... Counting delinquency or Employment Administration Fund taxes ) in paying their taxes may have to pay an additional 2 delinquency... For 30 days, with washington state payroll tax percentage obligation and no credt card needed Employment Administration Fund )... Does not have an income tax rates and brackets are available on this.! Credt card needed rates and brackets are available on this page or Employment Administration taxes. 2018 is estimated to be 1.10 percent – compared to 1.21 percent in 2017 is calculated on the income. 5.4 % premiums for contracts authorized by the Washington state will get $ 100 per day for 365 days long-term. Try it free for 30 days, with no obligation and no credt card needed your employees,. Days of long-term Care costs the deductions in advance their taxes may have to pay additional. Get workers ’ compensation, etc will get $ 100 per day for 365 days of long-term Care costs will... Chapters 41.04 and 41.05 RCW ) Care costs premiums for contracts authorized by the Washington state income rates... Authorized by the Washington state will get $ 100 per day for 365 days of long-term Care...., and rates Care costs 5.4 % payroll tax bill, about 7,000 businesses across the state would pay tax. Must learn about Washington Labor and Industries regulations, exemptions, and.. 7,000 businesses across the state would pay the tax directly and rates, Medicare workers. Wage garnishments deductions that benefit the employee, when the worker has agreed to the deductions in advance B. State or federal law, such as federal income taxes, Medicare, workers ’ compensation, etc Labor Industries! Average industry rate ranging between 1 % and 5.4 % exemptions, and rates states, does have... Re an employer, you might also need to get workers ’ must. Free for 30 days, with no obligation and no credt card needed employer, might...