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DC has a top income tax rate of 10.75%, employer-funded Paid Family Leave (0.26% of wages), mandatory Accrued Sick and Safe Leave, and one of the highest minimum wages in the US ($17.50/hour). Rippling handles DC OTR, DOES, PFL, and sick leave compliance.
Washington DC is the US capital — a unique jurisdiction combining federal government, major law firms, consulting, international organizations, technology, and one of the highest concentrations of advanced-degree workers in the US. DC payroll is among the most complex in the country: a high progressive income tax (top rate 10.75%), fully employer-funded Paid Family Leave (0.26% of wages), mandatory Accrued Sick and Safe Leave, workers’ comp required from the first employee, and one of the highest minimum wages in the US ($17.50/hour). Salary benchmarks in DC track to the federal government GS scale, BigLaw rates, and major consulting firm compensation.
Rippling’s Washington DC payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| DC SUI (DOES) | New employer 2.7% | On first $9,000 of wages (2024) |
| DC PFL (employer) | 0.26% of wages | Employer-funded entirely; remitted quarterly to DOES |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for 1+ employee |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| DC Income Tax | 4%–10.75% | 6-bracket progressive; top rate 10.75% on income above $1,000,000 (2024) |
| DC Income (2024) | DC Rate |
|---|---|
| Up to $10,000 | 4% |
| $10,001–$40,000 | 6% |
| $40,001–$60,000 | 6.5% |
| $60,001–$350,000 | 8.5% |
| $350,001–$1,000,000 | 9.25% |
| Above $1,000,000 | 10.75% |
DC withholding remitted to DC Office of Tax and Revenue (OTR). Annual FR-900B reconciliation.
Final Pay: DC requires final pay on the next regular payday or within 7 days of termination (whichever is sooner). Accrued vacation: DC Wage Payment and Collection Act treats promised vacation as wages — must be paid on termination unless a clearly communicated written forfeiture policy exists.
DC Paid Family Leave (PFL) is fully employer-funded at 0.26% of covered wages (quarterly remittance to DOES). Employees pay nothing. Benefits: up to 12 weeks paid family leave (bonding, family care), 12 weeks paid medical leave (own serious health condition), and 2 weeks prenatal leave — 26 weeks maximum in a benefit year. Benefits paid at 90% of wages up to 150% of DC minimum wage, then 50% above that, capped at the maximum weekly benefit ($1,009/week in 2024). Rippling manages DC PFL employer contributions and quarterly DOES remittances.
DC has a 6-bracket income tax system with a top rate of 10.75% on income above $1,000,000. DC’s income tax brackets mirror a high-income urban profile: 4% (up to $10,000); 6% ($10,001–$40,000); 6.5% ($40,001–$60,000); 8.5% ($60,001–$350,000); 9.25% ($350,001–$1,000,000); 10.75% above $1,000,000. DC also has a gross receipts tax on businesses.
DC’s minimum wage is $17.50/hour (July 2024 — DC minimum wages adjust in July). Tipped employees: $8.00/hour direct wage (tip credit), with full minimum wage protection if tips don’t make up the difference. DC has one of the highest minimum wages in the US, reflecting the cost of living in the Washington metro area.
DC requires workers’ comp coverage for employers with any employees — even one part-time or temporary worker. This is one of the lowest thresholds in the US. Coverage through private insurers or the DC Assigned Risk Plan. The DC Department of Employment Services (DOES) administers workers’ comp. DC workers’ comp benefits are generally more generous than most states.
