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Washington has no state income tax but mandatory PFML, WA Cares Fund contributions, and a monopolistic workers' comp system through L&I. Rippling automates the full WA compliance stack.
Washington State is home to Amazon, Microsoft, Boeing, and one of the most significant technology ecosystems in the US. While Washington has no state income tax, it has implemented progressive payroll programs — PFML, WA Cares Fund, and mandatory workers' comp through the state monopoly insurer (L&I) — that create meaningful payroll complexity. The Employment Security Department (ESD) administers unemployment insurance and PFML. L&I administers workers' comp and industrial safety.
Seattle's local minimum wage ($20.76/hour in 2024 for large employers) is one of the highest in the US. Washington's SUTA wage base ($68,500) is among the highest nationally.
Rippling's Washington State payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 0.6% | Net rate on first $7,000 wages. |
| WA SUTA (ESD) | 0.27%–6% | On first $68,500 wages (2024 — one of the highest SUTA wage bases in the US). New employer rate: 1%. |
| Social Security (OASDI) | 6.2% | On wages up to $168,600. |
| Medicare (HI) | 1.45% | No wage base limit. |
| WA PFML (Employer share, 50+ employees) | 28.57% of combined 0.74% premium | Employers with 50+ employees must contribute. Under 50: optional. |
| Workers' Comp (L&I) | Variable by risk class | Mandatory. Must use WA L&I — monopolistic state. No private carriers. |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | 10%–37% | Per W-4 elections. No WA state income tax. |
| Social Security (OASDI) | 6.2% | On wages up to $168,600 (2024). |
| Medicare (HI) | 1.45% | No wage base limit. 0.9% additional over $200,000. |
| WA PFML (Employee share) | 71.43% of combined 0.74% premium | On wages up to $168,600. Employee pays 71.43% of the combined premium. |
| WA Cares Fund | 0.58% | On all wages, no cap. Long-term care insurance. Applies to employees without an approved exemption. |
No Washington State income tax. Employees pay only federal income tax (10%-37%) and FICA. However, WA has two significant employee-side deductions unique among no-income-tax states: WA PFML (71.43% of 0.74% combined premium) and WA Cares Fund (0.58% on all wages, no cap). These partially offset the state income tax advantage relative to Texas and Florida.
Final Pay: Involuntary: end of next business day. Voluntary: next regular payday. Accrued PTO payout depends on employer policy.
At-Will: Washington is at-will. No cause required for termination.
Statutory: Workers' comp (mandatory, monopolistic L&I), unemployment insurance (ESD), WA Paid Family and Medical Leave (PFML), WA Cares Fund, no state income tax.
Market standard: Comprehensive medical/dental/vision (Amazon/Microsoft-competitive benchmarks in greater Seattle), 401(k) with 4-6% match, equity (RSUs/options), flexible work. Seattle tech compensation is among the highest in the US. WA supplemental programs (PFML, WA Cares) distinguish WA from TX and FL.
Washington's PFML provides up to 12 weeks of paid family leave (bonding, family care) plus up to 12 weeks medical leave (own serious health condition) — up to 18 weeks combined per year. Benefits are paid at 90% of wages up to 50% of the state average weekly wage, then 50% of wages above that threshold. Total benefit cap: ~$1,456/week (2024). Funded by combined employer/employee premiums (0.74% combined rate, 2024), split 28.57% employer (50+ employees) and 71.43% employee. Rippling calculates PFML premiums and coordinates with ESD for leave claims.
The Washington Cares Fund is a state long-term care insurance program. Employees pay 0.58% of all wages with no cap. Employees who obtained qualifying private LTC insurance before November 1, 2021 received a permanent exemption. New employees cannot opt out — the contribution is mandatory. Benefit: up to $36,500 lifetime for qualifying long-term care needs. Rippling withholds WA Cares contributions automatically for non-exempt employees.
Washington is a monopolistic workers' compensation state — all employers must obtain coverage through the Washington State Department of Labor and Industries (L&I). Private workers' comp carriers are not permitted. Premiums are set by L&I based on the employer's risk classification code. Rippling tracks L&I premiums and integrates with L&I reporting requirements.
Yes. Rippling's Washington payroll module handles federal income tax withholding (no state income tax), FICA, WA PFML premium split, WA Cares Fund deduction, WA SUTA quarterly filings with ESD, and L&I workers' comp premium tracking. thePeopleStack configures WA payroll including ESD account setup, L&I registration, and WA Cares exemption tracking.
