Washington employer tax information
About Washington employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Washington, you must be registered with the appropriate tax agencies so we can pay and file your state taxes.
For Washington Department of Revenue, you need your:
Unified Business Identifier (UBI) (9 digits)
For Washington Department of Labor & Industries (L&I), you need your:
Department of Labor & Industries (L&I) Account ID (8 digits)
Participant Activation Code (PAC) (Up to 8 digits, add zeros to end if less than 8 digits)
For Washington Employment Security Department, you need your:
Employment Security (ES) Reference Number (12 digits)
Employment Security Department Total Tax Rate
Employment Administration Fund (EAF) Rate
Workers’ Comp Experience Factor
Washington payroll state tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Washington Employment Security Department (ESD)
Unemployment Insurance Tax and Wage Report (5208A & 5208B): files quarterly
Unemployment Insurance Tax Payment: files quarterly
Washington Paid Family and Medical Leave: files quarterly
Washington Department of Labor & Industries (L&I)
Workers' Compensation Employer's Quarterly Report (F212-055-000): files quarterly
Workers’ Compensation Premium Payment: files quarterly
Washington Department of Social and Health Services (DSHS)
New Hire Reporting: files per new employee
Make Washington payroll tax payments
To make Washington Unemployment Insurance tax payments, you must be registered with the Employment Security Department and have an active Employment Security (ES) reference number and Unified Business Identifier number (UBI). If you do not have an account, you will need to register online through Secure Access Washington (SAW). Quarterly payments are due on the last day of the month following the end of the quarter (for instance, due on April 30, July 31, October 31, and January 31).
You may use either Employer Account Management Services (EAMS) or ePay to pay your taxes. Be sure to have your Employment Security (ES) reference number, Federal Identification number (FEIN) and Unified Business Identifier number (UBI) ready. Follow the prompts to enter your payment amount and method.
If you have questions regarding your Washington unemployment insurance taxes, contact the Washington Employment Security Department at 855-829-9243 or visit their website.
To make Washington Workers Compensation tax payments, you must be registered with the Department of Labor & Industries and have an active Account ID. Quarterly payments are due on the last day of the month following the end of the quarter (for instance, due on April 30, July 31, October 31, and January 31).
File, pay and register directly to the Washington MyL&I website.
If you have questions regarding Washington workers’ compensation taxes, contact the Washington Department of Labor & Industries Employer Services line at 360-902-4817 or email them at WebSupport@lni.wa.gov.
Make unemployment tax filings in Washington
Unemployment tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online, use the Employer Account Management Services (EAMS) system. You can pay your taxes online using the ePay system.
To file by mail, you must use the forms the ESD mails you because they use a unique ink that allows them to be scanned into the ESD’s computer system. Contact the ESD if you need additional forms. Mail in payments using the payment voucher that’s included with the forms.
As long as your account has an active status with the ESD, you are required to file a Quarterly Tax and Wage Report, even if you only file a No-Payroll Report. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Washington State Employment Security Department at 360-902-9360 or email status@esd.wa.gov.
Workers’ compensation tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter). All payments and filings must be made online.
Create a QuickFile account, and use the Claim & Account Center to file for the current and past quarters, delete and amend quarterly reports and manage claims. Payments can also be made online.
For questions, contact the Washington State Department of Labor & Industries at 360-902-4817 or visit www.lni.wa.gov.
Register as a new business in Washington
Tax accounts
Before anything else, you will need to file a Business License Application with the Washington Department of Revenue. This single application will also open an unemployment insurance account and a workers’ compensation account for your business. Your application will be processed in about 10 days.
If you have already filed the Business License Application, continue to the sections below.
Tax rates
Your Employment Security Department Total Tax Rate is the sum of your Unemployment Insurance Tax Rate and Employment Administration Fund Rate, i.e. Employment Security Department Total Tax Rate = UI Tax Rate + EAF Rate.
You will be assigned a tax rate based on your industry.
For more information, contact the agency at 855-829-9243.
This is either 0.02% or 0.03%. You can contact the agency at 360-902-9670 to find out which rate applies to you.
The Experience Factor for new employers is 1.0. For more information, contact the agency at 360-902-9670.
Find your Washington tax ID numbers and rate
Tax Accounts
You can find your Unified Business Identifier online.
If you’re unsure, contact the agency at 800-451-7985.
You can find your ES Reference Number online or on the Tax Rate Notice mailed by the WA State Employment Security Department.
If you’re unsure, contact the agency at 855-829-9243.
View your assigned Risk Class Code by visiting lni.wa.gov and search by entering your Worker’s Compensation Account Number (L&I Account ID).
If you’re unsure, contact the agency at 360-902-4817.
This can be found on the top left of your Employer’s Quarterly Report, on your Rate Notice, or New Account Letter. If your PAC is less than 8 digits, add zeros to the end.
If you’re unsure, contact the agency at 360-902-4817.
Tax rates
Your Employment Security Department Total Tax Rate is the sum of your Unemployment Insurance (UI) Tax Rate and Employment Administration Fund (EAF) Rate.
You can locate your UI Tax Rate and EAF Rate on the Tax Rate Notice sent by the Washington State Employment Security Department. If you can’t find it, please contact the agency at 360-902-9670.
Although Square Payroll will assist in verifying your tax rates each quarter, given that you have provided a valid Employment Security Reference Number, you are responsible for ensuring that these rates are accurately reflected in your Tax Info in your Square Dashboard.
Washington employee information
As of December 2013, officers who provide services in Washington are automatically exempt from unemployment insurance unless the employer specifically requests to cover them. This exception (opting into unemployment insurance) can only be made for corporations. It does not apply to sole proprietors, partners of partnerships, or managers of limited liability companies (LLCs), etc.
If a corporate officer wants to opt in to Washington State Unemployment Insurance, they must fill out the Voluntary Election Form, and the WA Employment Security Department must approve the request. If one corporate officer opts in, then ALL other corporate officers must be opted in as well. This form must be filed with the WA Employment Security Department every two years.
For more information, read these FAQs or contact the WA Employment Security Department at 360-902-9360.
Sole Proprietors, Partners, For-Profit Corporate Officers, and Members/Managers of Limited Liability Companies (LLCs) are typically exempt from workers compensation insurance. To voluntarily opt in, they must file the Application for Elective Coverage with the WA Department of Labor & Industries.
Certain types of income may not be subject to Federal Unemployment Tax (FUTA). Review Publication 15 and Publication 15-A to determine whether this exemption applies to your business. The IRS Small Business and Self-Employed Website also defines how this exemption applies to S Corporation employees, shareholders and corporate officers.
Washington Paid Family Leave Program
Washington requires most employers and employees to pay Paid Family and Medical Leave premiums. The Washington Paid Family and Medical Leave program is funded through premiums paid by employers and workers in the form of paycheck withholdings and is administered by the Washington Employment Security Department (ESD). The program allows eligible employees to take up to 12 weeks of time off to care for a new child, care for a close relative with a serious health condition, and for certain military-connected events.
Square Payroll supports WA Paid Family and Medical Leave premium calculations, employee withholdings, premium payments and reporting.
Review your account-specific settings
Employers with fewer than 50 employees are not required to pay the employer portion of the premium but may opt-in to become eligible for Small Business Assistance. Your business size is calculated on an annual basis on September 30th each year. It is based on your average employee headcount over the previous four quarters as reflected in the reports submitted to the Employment Security Department, not by the number of full time employee positions.
If your business qualifies, follow these steps:
- Sign in to your Square Dashboard and go to Staff & Payroll > Payroll > Tax Info.
- Select Edit next to your state tax account information and select I have less than 50 employees and did not opt into paying the employer portion of Paid Family and Medical Leave Premiums for WA Paid Family and Medical Leave.
All employers, no matter how many employees, are responsible for collecting and remitting the employee share of the total premium.
All Washington employees are required to participate with few exceptions. Self-employed individuals, federal employees and federally recognized tribes are exempt from the program, but tribes and people who are self-employed may opt in.
To mark an employee exempt from the program:
- Sign in to your Square Dashboard and select Staff & payroll > Team.
- Select the employee from the list of team members.
- In the Tax Settings section of the profile, select Exempt from Washington Paid Family and Medical Leave Program.
For additional information about the WA Paid Family and Medical Leave program, please reference the Washington Paid Leave Website.
Add Square Payroll as an authorized user for Washington Paid Family Leave
To file and pay your Washington Paid Family Leave taxes, Square Payroll needs to be added as an authorized user.
To add or manage users:
Sign to your Paid Family Leave account.
From the employer homepage, select Manage Account > User Maintenance.
Select Add User.
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On the Manage Internal User page, enter the following information:
Name: Square Payroll
SAW Username: squarepayroll
Email address: squarepayroll@squareup.com
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For Roles, select these roles for Square Payroll to have access:
Employment and wage detail
Payments
For Account Status, select Active > Save.
Washington Cares Fund
Washington requires most employees to pay Washington Cares (WA Cares) Fund premiums. The Washington Cares Fund program is funded through premiums paid by employees in the form of paycheck withholdings and is administered by the Washington Employment Security Department (WA ESD). The program allows eligible employees who have contributed throughout their working years to receive up to $36,500 of long-term care, starting July 2026. Long-term care refers to services to help a person who cannot perform everyday tasks themselves. Unless exempt, all Washington employees will be subject to a 0.58% tax on all gross wages. WA Cares Fund contributions are not capped at the taxable maximum for social security.
Square Payroll supports WA Cares Fund premium calculations, employee withholdings, premium payments, and reporting. Contributions will be shown on employees’ pay stubs as “WA State Cares Fund.” Starting with Q3 2023 tax filings, WA Cares will be reported quarterly to the WA ESD on the same report as your WA Paid Family & Medical Leave (PFML). You can access this report in your Tax Forms in your Square Dashboard. The name of the report is "Washington Paid Family & Medical Leave and WA Cares Fund Report."
All Washington employees are required to participate with a few exceptions. Employees can claim an exemption if any of the following situations apply to them:
- Living out of state — your primary residence must be outside of Washington.
- Temporarily working in Washington with a nonimmigrant visa — you must hold a nonimmigrant visa for temporary workers.
- A spouse or registered domestic partner of an active-duty military member — you must be married to or have a registered domestic partnership with an active-duty service member in the U.S. armed forces.
- A veteran with a 70% or greater service-connected disability — you must be rated by the U.S. Department of Veterans Affairs as having a service-connected disability of 70% or greater.
Employees must apply for an exemption with the WA ESD. After their exemption application is approved they will receive an exemption approval letter. Employees need to provide the exemption approval letter to their employer to be marked exempt. For additional information about exemptions, go to the Washington Cares Fund website.
To mark an employee exempt from the program:
- Collect a copy of the exemption approval letter from your employee
- Sign in to your Square Dashboard and go to Staff & payroll > Team.
- Select the employee from the list of team members.
- Go to the Tax Settings section of the profile, and select This employee has an approved exemption from Washington Cares Fund.
- The exemption will go into effect the same quarter the box is checked. If you need an exemption to go into effect in a future quarter please reach out to the customer success team.