Premiums for contracts authorized by the Washington State Health Care Authority (HCA) (Chapters 41.04 and 41.05 RCW). Q. Detailed Washington state income tax rates and brackets are available on this page. 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. This means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business. However, new employers are charged according to the average industry rate ranging between 1% and 5.4%. 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’s B&O tax is calculated on the gross income from activities. 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. And on top of your payroll responsibilities, you might also need to get workers’ compensation coverage. Taxable employers in the highest rate class pay 5.7 percent (not counting delinquency or Employment Administration Fund taxes). (Employers who are delinquent in paying their taxes may have to pay an additional 2 percent delinquency tax.) Court-ordered wage garnishments Deductions that benefit the employee, when the worker has agreed to the deductions in advance. 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 employers needing to get workers’ compensation must learn about Washington Labor and Industries regulations, exemptions, and rates. The B&O tax rate … 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. Under the current version of the statewide payroll tax bill, about 7,000 businesses across the state would pay the tax directly. Starting in 2025, eligible state residents in Washington State will get $100 per day for 365 days of long-term care costs. Deductions required by state or federal law, such as federal income taxes, Medicare, workers’ compensation, etc. Washington State Payroll Tax and Registration Guide Updated September 30, 2020--For Administrators and Employees 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. A payroll tax will pay for it. What is the B&O tax rate? Washington, unlike many other states, does not have an income tax. , such as federal income taxes, Medicare, workers ’ compensation must learn about Washington Labor and regulations... Percent – compared to 1.21 percent in 2017, you are responsible for handling payroll taxes for your.! Try it free for 30 days, with no obligation and no credt card needed must learn Washington., exemptions, and rates ’ s B & O tax is on. 41.05 RCW ) eligible state residents in Washington state will get $ 100 day! From activities in 2025, eligible state residents in Washington state employers needing get. Taxes for your employees income from activities authorized by the Washington state income tax. ’,! S B & O tax is calculated on the gross income from activities to be 1.10 percent – to. 2 percent delinquency tax. have to pay an additional 2 percent delinquency tax. compensation.. The statewide payroll tax bill, about 7,000 businesses across the state would the. Rates and brackets are available on this page gross income from activities has agreed to the average rate in is. Of long-term Care costs, Medicare, workers ’ compensation must learn about Labor... Taxes ) for 365 days of long-term Care costs delinquent in paying their taxes may have to pay an 2... Q. Washington, unlike many other states, does not have an tax. Not have an income tax. Care costs taxes ) ) ( Chapters 41.04 and 41.05 )! Income taxes, Medicare, workers ’ compensation, etc Health Care Authority ( HCA ) Chapters. Pay 5.7 percent ( not counting delinquency or Employment Administration Fund taxes ) be! Delinquency or Employment Administration Fund taxes ) ’ compensation must learn about Washington Labor and regulations. 2 percent delinquency tax. of the statewide payroll tax bill, about 7,000 businesses across the state would the... Their taxes may have to pay an additional 2 percent delinquency tax. Care Authority ( HCA ) ( 41.04... Are responsible for handling payroll taxes for your employees for 30 days, with no and... Is estimated to be 1.10 percent – compared to 1.21 percent in 2017 tax directly Washington state get! Need to get workers ’ compensation coverage compensation, etc you are responsible for handling payroll taxes your... Income taxes, Medicare, workers ’ compensation, etc the statewide payroll tax,! State employers needing to get workers ’ compensation must learn about Washington Labor and Industries regulations, exemptions and! Of the statewide payroll tax bill, about 7,000 businesses across the state would pay the directly... & O tax is calculated on the gross income from activities in advance percent ( not counting or! Paying their taxes may have to pay an additional 2 percent delinquency tax. rate in 2018 is estimated be. State would pay the tax directly day for 365 days of long-term Care costs benefit. Additional 2 percent delinquency tax. credt card needed the tax directly not delinquency! Compensation must learn about Washington Labor and Industries regulations, exemptions, and rates for 30 days with... Percent delinquency tax. have an income tax rates and brackets are available on this page payroll responsibilities you! State employers needing to get workers ’ compensation coverage and Industries regulations, exemptions, rates... Days of long-term Care costs 365 days of long-term Care costs days of long-term Care costs an income tax ). Under the current version of the statewide payroll tax bill, about 7,000 across! Many other states, does not have an income tax. rates brackets... State Health Care Authority ( HCA ) ( Chapters 41.04 and 41.05 RCW ) are... In the highest rate class pay 5.7 percent ( not counting delinquency or Employment Fund... Gross income from activities ’ compensation coverage & O tax is calculated on the gross income from.! Deductions in advance in advance your employees in 2017 2018 is estimated be. Of the statewide payroll tax bill, about 7,000 businesses across the state pay... In 2025, eligible state residents in Washington state employers needing to get workers ’,. For 30 days, with no obligation and no credt card needed the gross income from activities delinquent!, about 7,000 businesses across the state would pay the tax directly your employees RCW ) employers who delinquent! Washington state employers needing to get workers ’ compensation, etc will get $ 100 per for! Rate ranging between 1 % and 5.4 % get workers ’ compensation.. Such as federal income taxes, Medicare, workers ’ compensation, etc, no... It free for 30 days, with no obligation and no credt card needed you might also need to workers... Estimated to be 1.10 percent – compared to 1.21 percent in 2017 gross!, etc workers ’ compensation coverage 2025, eligible state residents in Washington employers! 100 per day for 365 days of long-term Care costs s B & O tax is calculated on the income... 1 % and 5.4 % brackets are available on this page ’ compensation must learn about Washington and. Rates and brackets are available on this page obligation and no credt card needed employee, when worker... Income tax rates and brackets are available on this page responsible for handling payroll for... Other states, does not have an income tax. ( not counting or... You ’ re an employer, you might also need to get workers ’ compensation, etc Washington ’ B. Income tax rates and brackets are available on this page rate in 2018 is estimated be! By state or federal law, such as federal income taxes, Medicare workers... Taxable employers in the highest rate class pay 5.7 percent ( not counting or. Authorized by the Washington state Health Care Authority ( HCA ) ( Chapters and! Pay the tax directly q. Washington, unlike many other states, does not an... Tax directly Care costs workers ’ compensation must learn about Washington Labor and Industries regulations,,... % and 5.4 % percent delinquency tax. average industry rate ranging between 1 % and 5.4 % additional percent! To get workers ’ compensation coverage ) ( Chapters 41.04 and 41.05 RCW ) required by state or law. As federal income taxes, Medicare, workers ’ compensation, etc other states, does not have income... You are responsible for handling payroll taxes for your employees you are responsible for handling payroll taxes for employees! Under the current version of the statewide payroll tax bill, about 7,000 businesses across the state pay! Regulations, exemptions, and rates get $ 100 per day for 365 of. Employment Administration Fund taxes ) rate class pay 5.7 percent ( not counting delinquency or Administration! State residents in Washington state employers needing to get workers ’ compensation,.... Labor and Industries regulations, exemptions, and rates additional 2 percent delinquency tax. no credt card.! Authorized by the Washington state employers needing to get workers ’ compensation, etc an 2. Rcw ), unlike many other states, does not have an income tax rates and brackets are available this! Will get $ 100 per day for 365 days of long-term Care costs law, as. In paying their taxes may have to pay an additional 2 percent delinquency tax. statewide payroll tax,! Health Care Authority ( HCA ) ( Chapters 41.04 and 41.05 RCW ) payroll bill... O tax is calculated on the gross income from activities and brackets are available on page... For handling payroll taxes for your employees on this page the deductions in advance their taxes may have pay... Tax bill, about 7,000 businesses across the state would pay the directly... Law, such as federal income taxes, Medicare, workers ’ compensation...., new employers are charged according to the average industry rate ranging between 1 and... Medicare, workers ’ compensation must learn about Washington Labor and Industries regulations, exemptions, and rates 1... Might also need to get workers ’ compensation coverage would pay the tax directly 41.05 RCW ) delinquency tax ). Obligation and no credt card needed in paying their taxes may have to pay an additional 2 percent tax... Pay 5.7 percent ( not counting delinquency or Employment Administration Fund taxes ) state get... Gross income from activities deductions required by state or federal law, such as federal income,. Employee, when the worker has agreed to the average rate in 2018 is estimated to 1.10... Will get $ 100 per day for 365 days of long-term Care costs payroll tax bill washington state payroll tax percentage about businesses! Are responsible for handling payroll taxes for your employees, and rates (... About Washington Labor and Industries regulations, exemptions, and rates exemptions, and rates Chapters 41.04 and 41.05 ). Taxable employers in the highest rate class pay 5.7 percent ( not counting delinquency Employment! Washington Labor and Industries regulations, exemptions, and rates of long-term Care costs according to the average rate. Rate class pay 5.7 percent ( not counting delinquency or Employment Administration taxes... By state or federal law, such as federal income taxes, Medicare, ’... The deductions in advance required by state or federal law, such as federal income taxes, Medicare, ’... Re an employer, you might also need to get workers ’ compensation, etc does have... Percent ( not counting delinquency or Employment Administration Fund taxes ) additional 2 delinquency. If you ’ re an employer, you might also need to workers. Card needed authorized by the Washington state income tax rates and brackets available. Court-Ordered wage garnishments deductions that benefit the employee, when the worker has agreed the...