Payroll taxes
What are Washington employer payroll taxes on a first employee?
Short answer: on a first Washington employee paid $20 an hour for 40 hours a week, the federal employer payroll taxes are $3,224.40 a year, plus state unemployment tax at the rate on your notice. The federal piece is $3,182.40 of employer FICA plus $42.00 of net FUTA. Washington also charges state unemployment tax on the first $78,200.00 of wages, but the U.S. DOL January 2026 Significant Provisions table (PDF) lists the new-employer rate as an industry average rather than one published percentage, so this page does not invent a SUTA dollar amount. Washington does not tax wages under a state personal income tax, so there is no state income-tax withholding to deposit for this employee. Confirm that on the Washington tax agency site; federal income-tax withholding still applies. Washington also has Paid Family and Medical Leave and WA Cares (long-term care). Confirm any employer share on the official program page; this site does not invent that rate. Workers’ comp and payroll software are extra costs, not payroll taxes.
Key takeaways
- Federal employer Social Security (6.2% up to the 2026 wage base of $184,500), employer Medicare (1.45% of all wages), and net FUTA (usually 0.6% on the first $7,000) apply in Washington the same way they do in every state (IRS Publication 15, IRS Topic 751, IRS Topic 759 (Form 940/FUTA)).
- Washington unemployment tax is administered by Washington Employment Security Department. The U.S. DOL January 2026 Significant Provisions table (PDF) lists a 2026 taxable wage base of $78,200.00 and a new-employer rate described as an industry average. Enter the rate on your unemployment insurance notice rather than guessing.
- Washington has no state personal income tax on wages, so there is no state wage-withholding account for income tax. Confirm current rules on the Washington tax agency site.
- Report the new hire within 20 days of the hire date. The official source is the ACF State New Hire Reporting contacts and program requirements; a reporting page is the official new-hire reporting page.
On this page
See the Washington stack Opens the calculator at $20 an hour, 40 hours, and Washington, with the official 2026 wage base filled in and the new-employer rate left blank for you to enter.
Open the calculator with these figuresFederal employer payroll taxes that apply in Washington
When you hire a W-2 employee in Washington, the federal employer share has three parts, and they do not change just because the work is in Washington:
- Employer Social Security, 6.2% of wages up to the 2026 Social Security wage base of $184,500 (IRS Publication 15, IRS Topic 751). On $41,600 that is $2,579.20.
- Employer Medicare, 1.45% of all wages, with no wage-base cap. On $41,600 that is $603.20.
- FUTA, which is 6.0% on the first $7,000 of wages, usually reduced to a net 0.6% when you pay state unemployment tax on time (IRS Topic 759 (Form 940/FUTA)). For one employee that is $42.00. Credit-reduction states can owe more; check the current IRS credit-reduction list if you are unsure.
Together, those federal employer taxes are $3,224.40 on this $20-an-hour, full-year example. You also withhold the employee share of FICA and any federal income tax; those withheld amounts are the employee’s money, not an extra employer cost.
Washington unemployment tax (SUTA)
State unemployment insurance is administered by Washington Employment Security Department. The wage base and new-employer rate below come from the U.S. DOL January 2026 Significant Provisions table (PDF), which is the same source used in this site’s calculator. The DOL directory of state unemployment tax agencies is the official contact list if the agency URL changes.
The official DOL table lists a 2026 Washington taxable wage base of $78,200.00. It does not publish a single new-employer percentage; it describes the rate as an industry average. DOL lists Washington's new-employer rate as an industry average. Enter the rate on your state notice. On $41,600 of wages, SUTA would apply only to the first $78,200.00. Without a verified percentage, this page does not show a SUTA dollar total.
State income-tax withholding
Washington does not levy a state personal income tax on wages, so a first-hire employer typically has no state income-tax withholding to set up. Confirm that on the Washington tax agency site, because other business taxes can still apply. Federal income-tax withholding and FICA withholding are unchanged.
Disability, paid leave, and other state payroll contributions
Unlike states that publish one new-employer percentage in the DOL table, Washington’s new-employer rate is listed as an industry average. The wage base of $78,200.00 is official and is used in the calculator. Leave the SUTA rate blank until you have the notice, or type the percentage your agency assigned.
DOL lists Washington's new-employer rate as an industry average. Enter the rate on your state notice.
One practical difference in Washington is that there is no state income tax on wages to withhold. You still withhold federal income tax and the employee share of FICA, and you still pay employer FICA, FUTA, and Washington unemployment tax.
Washington also runs Paid Family and Medical Leave and WA Cares (long-term care), administered by Washington Employment Security Department / WA Cares. Washington has no state income tax on wages, but it does have paid-leave and long-term-care premiums. Confirm current employer and employee shares on the official Paid Leave and WA Cares sites. Official page: Paid Family and Medical Leave and WA Cares (long-term care).
New-hire reporting in Washington
Washington employers must report a new hire within 20 days of the hire date. That requirement comes from the official ACF State New Hire Reporting matrix, checked in November 2026. File through the official new-hire reporting page. The ACF State New Hire Reporting contacts and program requirements is the directory if the filing site changes.
New-hire reporting is a filing requirement, not a tax. It still belongs on a first-hire payroll checklist because missing the deadline can bring state penalties. See also paperwork to hire your first employee.
Worked example: $20 an hour, 40 hours, Washington
This example uses a round $20 wage so you can compare it with the site’s other $20-an-hour pages and with the state payroll taxes for a first employee index. It is not a claim about what helpers in Washington earn, and it leaves out workers’ comp, health coverage, retirement, paid time off, and payroll software.
| Line (one year, 2,080 hours) | Amount |
|---|---|
| Wages at $20.00/hour (2,080 hours) | $41,600.00 |
| Employer Social Security (6.2%) | $2,579.20 |
| Employer Medicare (1.45%) | $603.20 |
| FUTA (0.6% net, first $7,000) | $42.00 |
| Washington SUTA (rate from your notice, first $78,200.00) | Not invented here |
| Employer payroll taxes in this example | $3,224.40 federal + SUTA from your notice |
SUTA and FUTA are front-loaded: you pay them only until each wage base is met, so early pay periods cost more than later ones in the same calendar year. Employer Medicare continues all year, and employer Social Security continues until the federal wage base is met.
What this example leaves out
Workers’ compensation is insurance, not a payroll tax. Premiums vary by Washington class code, carrier, and payroll, and this site only prefills verified Indiana ICRB advisory rates when you select Indiana. See workers’ comp for a first employee. Overtime, bonuses, and benefits also change the total. For the week-by-week federal pattern at this same wage, see payroll taxes on a $20-an-hour employee.
Run your own wage and hours The calculator loads Washington’s 2026 unemployment wage base from the official DOL table.
Open the Washington calculatorOther state payroll-tax pages
Every state and the District of Columbia in this series uses the same $20-an-hour example and the same official DOL and ACF sources, with the figures that actually apply in that jurisdiction. Start from the state payroll taxes for a first employee index, or go to Virginia employer payroll taxes or West Virginia employer payroll taxes.
Frequently asked questions
What payroll taxes does a Washington employer pay on a first employee?
You pay federal employer Social Security at 6.2%, employer Medicare at 1.45%, federal unemployment tax (FUTA) at a net 0.6% on the first $7,000 for most employers, and Washington state unemployment tax. The U.S. DOL January 2026 table lists a Washington wage base of $78,200.00 and describes the new-employer rate as an industry average, so this page does not invent a SUTA dollar total. On a $20-an-hour, 40-hour employee, the federal employer taxes are $3,224.40 a year. Workers' comp is insurance, not a payroll tax.
What is Washington's unemployment tax rate for a new employer in 2026?
The U.S. DOL January 2026 state UI table lists a Washington taxable wage base of $78,200.00 and a new-employer rate described as an industry average. Enter the percentage on your unemployment insurance notice. This site does not invent that rate.
Does Washington require state income-tax withholding on a first employee's wages?
No state personal income tax applies to wages in Washington, so there is typically no state income-tax withholding to set up. Confirm that on the official state tax site. Federal income-tax withholding and FICA still apply, and you still pay Washington unemployment tax.
When do I have to report a new hire in Washington?
Washington employers must report a new hire within 20 days of the hire date, according to the official ACF State New Hire Reporting matrix checked in November 2026. Federal law requires reporting within 20 days unless the state requires it sooner.
Does Washington have a disability or paid-leave payroll tax?
Washington has Paid Family and Medical Leave and WA Cares (long-term care), administered by Washington Employment Security Department / WA Cares. Washington has no state income tax on wages, but it does have paid-leave and long-term-care premiums. Confirm current employer and employee shares on the official Paid Leave and WA Cares sites.
Federal figures were checked against 2026 IRS Publication 15 and IRS Topics 751 and 759 in November 2026. State unemployment wage bases and new-employer rates come from the U.S. DOL January 2026 Significant Provisions table. New-hire reporting deadlines come from the official ACF State New Hire Reporting matrix. Confirm the rate on your unemployment insurance notice, and confirm current withholding, disability, and paid-leave rules with the linked state agencies before you hire.