Payroll Cost per Employee in Washington
2026 estimates — total employer cost including taxes and benefits
Min wage in Washington: $16.28/hr | SUTA: 0.27–6.02% on first $67,600
Calculate Total Payroll Cost in Washington
Payroll Tax Breakdown — Washington 2026
| Tax / Cost | Rate / Rule | Annual Amount |
|---|---|---|
| Base salary | Per agreement | $67,100 |
| Social Security (employer) | 6.2% on first $168,600 | $4,160 |
| Medicare (employer) | 1.45% of all wages | $973 |
| FUTA (federal unemployment) | 0.6% on first $7,000 | $42 |
| Washington SUTA | 0.27–6.02% on first $67,600 | $600 |
| Benefits (health, 401k, etc) | ~18% of salary (typical) | $12,078 |
| Total Employer Cost | $85,331 | |
Based on $67,100 median salary in Washington. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: Paid Family and Medical Leave: 0.74% shared employer/employee; L&I premiums vary by class code.
Payroll Requirements in Washington
1. Washington Payroll Tax & Compliance Overview
Washington has no state income tax, which simplifies withholding significantly. However, Washington has several mandatory payroll add-ons: Paid Family and Medical Leave (PFML) at 0.74% of wages (employer/employee split); WA Cares Fund long-term care deduction (0.58% employee-paid, starting 2024 for most workers); and L&I workers' comp through the state Department of Labor & Industries (monopoly state — private workers' comp not allowed). Washington's SUTA taxable wage base is $67,600 — the highest in the nation.
2. Top Tips for Washington Employers
Washington employers: set up both PFML and WA Cares Fund deductions from day one — both are mandatory and employees will ask. L&I rates vary greatly by job classification code — manufacturing and construction pay far higher rates than office workers. Washington's $67,600 SUTA wage base means you pay SUTA contributions significantly longer per employee than in most states. Gusto and ADP handle WA PFML and L&I calculations automatically.
3. Key Washington Payroll Facts
- Minimum wage: $16.28/hr
- State income tax: None (no state income tax)
- State unemployment (SUTA): 0.27–6.02% on first $67,600
- Additional: Paid Family and Medical Leave: 0.74% shared employer/employee; L&I premiums vary by class code
Run Washington Payroll Automatically
Automated payroll software handles Washington tax calculations, filings, and W-2s for $40–$150/month.
Payroll Software Cost Comparison — Washington 2026
At $7,111/month total employer cost, automating payroll for $67,100 median salary employees costs 27% above base salary. Software adds just 0.1–0.3% but eliminates costly compliance errors.
| Software | Base Price | Per Employee |
|---|---|---|
| Gusto Top pick | $46/mo | +$6/emp/mo |
| QuickBooks Payroll Core | $45/mo | +$6/emp/mo |
| ADP Run Essentials | ~$65/mo | +$4/emp/mo |
| Rippling | $35/mo | +$8/emp/mo |
Prices as of 2026. All four platforms handle Washington state tax filings automatically. 10-employee team example: Gusto = $106/mo, QuickBooks = $105/mo, ADP ≈ $105/mo, Rippling = $115/mo.
Frequently Asked Questions
Washington Payroll Summary
- →Avg salary: $67,100/yr
- →Total cost: $85,331/yr
- →Overhead rate: ~27% above salary
- →Min wage: $16.28/hr
- →State income tax: None (no state income tax)