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 payroll costs are above the national average. Key employer requirements: state income tax withholding (None (no state income tax)), state unemployment insurance (SUTA: 0.27–6.02% on first $67,600), plus the standard federal obligations (FICA 7.65%, FUTA up to $420/employee). Paid Family and Medical Leave: 0.74% shared employer/employee; L&I premiums vary by class code.
2. Top Tips for Washington Employers
Washington employers: use payroll software like Gusto, QuickBooks Payroll, or Rippling to automate state-specific tax calculations. These typically cost $40–$150/month for small businesses — far less than the penalty risk of manual payroll errors. Set up pay-as-you-go workers' comp tied to each payroll run to eliminate audit surprises.
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.
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)