QUANT SOLUTIONS
FINANCIAL & MANAGEMENT INSIGHTS
Washington Employer
Payroll Compliance
Know the rules. See the numbers. Pay with confidence.
Hypothetical Lacey adult family home | First biweekly paycheck | Not an agency bill.
2026 edition | v1.5 | Reviewed 13 October 2026 | Education, not professional advice
Know where to report and pay each payroll item
Correct wages, clear statements and agency payments are separate duties. Start with these official pages.
| PAYROLL ITEM | OFFICIAL PAGE - CLICK TO OPEN | ACTION / PAYMENT TYPE | EXAMPLE* |
|---|---|---|---|
| Federal income tax (FIT), plus employee + employer Social Security (SS) and Medicare | Internal Revenue Service (IRS) Business payments → | Form 941; correct tax period. Choose Federal Tax Deposit when a deposit is required. | $486.68 |
| Federal Unemployment Tax Act (FUTA) | IRS business payments → | Form 940, not Form 941. Select the correct year and payment reason. | $12.54 |
| Paid Family & Medical Leave (PFML) | Paid Leave: report and pay → | Employer account > $ Payments > Make Payments > Pay Paid Leave Premiums. | $16.87 |
| WA Cares Fund | Same Paid Leave account → | $ Payments > Make Payments > Pay WA Cares Premiums. Separate from PFML. | $12.12 |
| Workers' compensation (L&I), both shares | Labor & Industries (L&I) File quarterly reports → | Choose QuickFile or Claim & Account Center. Report the quarter and pay the premium. | $94.92 |
| Unemployment Insurance (UI) + Employment Administration Fund (EAF) | Employment Security Department Unemployment payments → | SecureAccess Washington > Employer Account Management System (EAMS); report quarter, then pay. | $31.98* |
* Allocations, not amounts due today. UI/EAF uses separate-line rounding; reconcile actual agency totals and due dates.
A paystub must explain how the payment was calculated
Washington requires a separate itemized statement on each payday.
REQUIRED EACH PAYDAY
- Pay period and payment dateUse complete month, day and year dates.
- Pay basis and applicable ratesShow the hours or days on which pay is based and the rate or rates paid.
- Gross wages and every deductionShow total earnings before deductions; identify each amount withheld.
- A statement the employee can keepAn electronic statement must be accessible and copyable on payday.
PAID SICK LEAVE: AT LEAST MONTHLY
Hours earned
Hours used
Unused hours available for use
The notice may be on the paystub or separate.
ADD FOR CLARITY AND RECONCILIATION
Employer and employee identifiers; regular and overtime lines; net pay; and year-to-date totals.
Start with explicit facts before calculating any tax
One ordinary, nonexempt adult caregiver at a for-profit adult family home (AFH) in Lacey, Washington.
| INPUT | ASSUMPTION USED THROUGHOUT |
|---|---|
| Work and pay | 9 paid work hours/day, Monday–Saturday; $17.13/hour; no other earnings. |
| Workweek and dates | Monday–Sunday; June 1–14, 2026; assumed pay date June 18, 2026. |
| Federal Form W-4 | 2026 form: Single; Step 2 unchecked; Steps 3 and 4 all $0; not exempt; no nonresident-alien adjustment. |
| Pay frequency and tax bases | Biweekly: 26 annual periods. First 2026 payment; no earlier wages at this employer. All covered wage bases equal gross here. |
| Washington coverage | Paid Leave state plan; ESD-classified under 50; no employer-share election or grant obligation; no worker exemptions. |
| Assigned example rates | L&I: $0.8789/hour total, including $0.2500 worker share. UI: 1.50% excluding EAF. EAF: 0.03%. All hypothetical. |
| Other assumptions | No pre-tax benefits, bonuses or other deductions. Full FUTA credit assumed. Sick-leave use waits 90 days. |
Weekly overtime turns 108 work hours into $2,089.86
Gross pay is earnings before employee taxes and deductions.
| EARNINGS | CALCULATION FOR TWO WEEKS | AMOUNT |
|---|---|---|
| Regular earnings | 80 hours × $17.13 | $1,370.40 |
| Overtime earnings | 28 hours × ($17.13 × 1.5) | $719.46 |
| Gross wages | Regular earnings + overtime earnings | $2,089.86 |
Exact overtime rate: $25.695/hour. Do not round it to $25.70 before multiplying.
The IRS automated method gives $166.94 for this paycheck
Publication 15-T (2026), Worksheet 1A • Standard schedule • Single • W-4 Step 2 unchecked
1 ANNUALIZE AND ADJUST THE WAGES
| WORKSHEET 1A INPUT | AMOUNT |
|---|---|
| This paycheck | $2,089.86 |
| Annualize: × 26 | $54,336.36 |
| IRS adjustment: subtract | $8,600.00 |
| Adjusted annual wages | $45,736.36 |
2 SELECT THE ANNUAL TABLE ROW
Single / Married Filing Separately • STANDARD schedule
| AT LEAST | LESS THAN | BASE TAX | RATE | EXCESS OVER |
|---|---|---|---|---|
| $0 | $7,500 | $0.00 | 0% | $0 |
| $7,500 | $19,900 | $0.00 | 10% | $7,500 |
| $19,900 | $57,900 | $1,240.00 | 12% | $19,900 |
$45,736.36 fits the highlighted row.
$1,240 is the tax accumulated in the lower taxable band.
The employee and employer each pay these two federal taxes
Federal Insurance Contributions Act (FICA) taxes are separate from federal income-tax withholding.
| TAX | RATE: EACH | 2026 WAGE BASIS | EMPLOYEE | EMPLOYER |
|---|---|---|---|---|
| Social Security (SS) | 6.20% | First $184,500 of annual covered wages | $129.57 | $129.57 |
| Medicare | 1.45% | All Medicare wages; no annual wage cap | $30.30 | $30.30 |
This period: $2,089.86 × 6.20% = $129.57; $2,089.86 × 1.45% = $30.30.
ADDITIONAL MEDICARE TAX: EMPLOYEE ONLY
An employer must withhold an extra 0.9% on Medicare wages it pays that employee above $200,000 in the calendar year.
No employer match. This example: $0.00.
Paid Leave and WA Cares fund different benefits
Do not combine their premiums, wage caps or exemption rules.
PAID FAMILY & MEDICAL LEAVE (PFML)
Family and medical leave
1.13% total premium on covered gross wages, excluding tips; capped at $184,500 in 2026.
Employee share: up to 71.43%
$2,089.86 × 1.13% × 71.43%
Employer: $0.00 in this qualifying under-50 example; 28.57% of the premium when required.
WA CARES FUND
Long-term care
0.58% employee premium on covered wages; no annual wage cap. No employer matching premium.
Employee calculation
$2,089.86 × 0.58%
Check current exclusions and exemption evidence; retain an agency approval letter where applicable.
Verify ESD size, grant obligations, voluntary plans and worker coverage; remit PFML and WA Cares separately.
L&I is one insurance premium shared by two payers
Washington Department of Labor & Industries (L&I) State Fund coverage protects against work-related injury and illness.
HOW THE RATE IS BUILT
Assigned job risk class
+ fund rates
+ employer experience rating
Hourly composite = experience factor × (Accident + Medical Aid + Stay at Work base rates) + Supplemental Pension rate.
Employer pays the Accident Fund. The permitted worker share is half of Medical Aid, Stay at Work and Supplemental Pension.
HYPOTHETICAL RATES — USE YOUR NOTICE
| PREMIUM | CALCULATION | AMOUNT |
|---|---|---|
| Combined premium | 108 hours × $0.8789 | $94.92 |
| Worker deduction | 108 hours × $0.2500 | $27.00 |
| Employer expense | $94.92 – $27.00 | $67.92 |
Two calculations allocate the same $94.92 illustrative premium. The worker deduction is not an extra employer expense.
Read the ESD total rate before adding any component
Employment Security Department (ESD): both assessments are paid by the employer, not the worker.
| ASSESSMENT | WHAT IT FUNDS | RATE* | THIS PERIOD |
|---|---|---|---|
| Unemployment Insurance (UI) | Unemployment benefits; employer experience and shared-cost components. | 1.50% | $31.35 |
| Employment Administration Fund (EAF) | Employment services, training and job-search assistance. | 0.03% | $0.63 |
| Illustrative line total | Separate rounded components in this example. | 1.53% | $31.98 |
* Assumed rates. Both apply here to $2,089.86 of taxable wages; 2026 annual wage base: $78,200 per worker.
Rounding: separate lines total $31.98; 1.53% rounded once gives $31.97. Reconcile actual quarterly totals to ESD.
FUTA is 0.6% only when the full state credit is available
Federal Unemployment Tax Act (FUTA) tax is paid by the employer, never withheld from the employee.
Full ordinary credit requires qualifying state UI paid in full by the Form 940 due date, coverage of the same wages, and no applicable credit reduction.
| FIRST PAYCHECK | CALCULATION | FUTA |
|---|---|---|
| Unused annual base: $7,000 | 0.60% × MIN($2,089.86, $7,000) | $12.54 |
A lower assigned state UI rate can still qualify for the full credit. EAF is not a qualifying UI contribution.
Gross wages less $382.80 of deductions gives $1,707.06
Illustration only • Employer: Example AFH • Employee: Sample caregiver • Currency: USD
Pay period: June 1–14, 2026 | Pay date: June 18, 2026 | Pay basis: hourly
| EARNINGS / DEDUCTIONS | CALCULATION / BASIS | AMOUNT |
|---|---|---|
| Regular earnings | 80 hours × $17.13 | $1,370.40 |
| Overtime earnings | 28 hours × $25.695 | $719.46 |
| Gross wages | Regular + overtime | $2,089.86 |
| Federal income tax (FIT) | IRS Worksheet 1A | ($166.94) |
| Social Security (SS) | 6.20% × gross | ($129.57) |
| Medicare | 1.45% × gross | ($30.30) |
| Paid Family & Medical Leave (PFML) | 1.13% × 71.43% × gross | ($16.87) |
| WA Cares Fund | 0.58% × gross | ($12.12) |
| Workers' compensation (L&I) | 108 hours × $0.2500* | ($27.00) |
PAID SICK LEAVE: FIRST NOTICE
Earned: 108 ÷ 40 = 2.70 hours
Used: 0.00 hours
Unused: 2.70 hours
Available now: 0.00 hours
A 90-day use waiting period is assumed.
Accrual begins on day one.
* Hypothetical rate. First payment: current amounts equal year-to-date (YTD) amounts. Parentheses are deductions.
Illustrative employer cost: $2,362.17
Hypothetical case, before remittance reconciliation. Employee deductions are already included in gross wages.
| EMPLOYER COST | CALCULATION / BASIS | AMOUNT |
|---|---|---|
| Gross employee wages | Regular + overtime | $2,089.86 |
| Social Security (SS) | 6.20% × gross | $129.57 |
| Medicare | 1.45% × gross | $30.30 |
| Paid Family & Medical Leave (PFML) | Under-50 assumption | $0.00 |
| Workers' compensation (L&I) | 108 hours × $0.6289* | $67.92 |
| Unemployment Insurance (UI) | 1.50%* × gross | $31.35 |
| Employment Administration Fund (EAF) | 0.03%* × gross | $0.63 |
| Federal Unemployment Tax Act (FUTA) | 0.60% × taxable wages | $12.54 |
| Illustrative employer payroll cost | Gross + employer costs | $2,362.17 |
EMPLOYER TAXES & PREMIUMS
$272.31Added to gross wages in this example.
ILLUSTRATIVE RECONCILIATION
$1,707.06 to the employee
+ $655.11 taxes and premiums
= $2,362.17 illustrated cost
Not an agency bill or proof of payment.
Confirm balances, deadlines and settlement.
Itemized payment checklist: slide 14.
* Assumed rates. Reconcile payroll-line rounding to agency totals. Excludes benefits, fees and unused-leave accrual.
What to pay, to which agency, and when
One June 18, 2026 paycheck: $655.11 in allocations. Not a bill due today; reconcile the full reporting period.
| AGENCY / PAYMENT LINK | ITEMIZED AMOUNTS (USD) | SUBTOTAL | WHEN TO PAY / WHAT TO SELECT |
|---|---|---|---|
| Internal Revenue Service (IRS) Form 941 IRS business payments → | Federal income tax (FIT): $166.94 employee Social Security: $129.57 employee + $129.57 employer Medicare: $30.30 employee + $30.30 employer | $486.68 | Use your IRS schedule, not payroll frequency. Monthly: July 15; semiweekly for June 18: June 24. Qualifying payment with Q2 return: July 31 [1]. Select Form 941 + correct quarter + Federal Tax Deposit (or Balance due on return or notice, when permitted). |
| IRS - Form 940 IRS business payments → | Federal Unemployment Tax Act (FUTA) Employer only: $12.54 | $12.54 | All workers: undeposited FUTA + carryforward > $500 at quarter-end: deposit by following month-end. Otherwise carry during year; settle by Feb 1, 2027. Select Form 940 / 2026; deposit or permitted balance due. |
| WA Employment Security Department (ESD) Pay Paid Leave premiums → | Paid Family & Medical Leave (PFML) Employee $16.87 + employer $0.00 | $16.87 | Quarterly: Q2 2026 due July 31, 2026. Choose Pay Paid Leave Premiums. |
| WA ESD - WA Cares Fund Pay WA Cares premiums → | WA Cares Fund Employee $12.12; employer $0.00 | $12.12 | Quarterly: Q2 2026 due July 31, 2026. Choose Pay WA Cares Premiums; separate payment. |
| WA ESD - Unemployment Report / pay through EAMS → | Unemployment Insurance (UI): $31.35 Employment Administration Fund (EAF): $0.63 Both employer-paid. | $31.98* | Quarterly: Q2 2026 due July 31, 2026. Use Employer Account Management System (EAMS), not the Paid Leave premium account. |
| WA Labor & Industries (L&I) File quarterly report / pay → | Workers' compensation - State Fund Worker $27.00 + employer $67.92 | $94.92 | Quarterly: Q2 2026 due July 31, 2026. Use QuickFile or Claim & Account Center. |
[1] Employer-wide Form 941 line 12 < $2,500 in current or prior quarter; no $100,000 next-day trigger in current quarter.
WA 2026 Q1/Q2/Q3/Q4: Apr 30 / Jul 31 / Nov 2 / Feb 1, 2027. Separate payments; reconcile prior payments, credits and rounding.
Start with five essentials. Get help with the rest.
Have your business name, address, federal tax ID (EIN) and WA business number (UBI) handy.
| ESSENTIALS TO START | WHAT TO HAVE READY | FIND IT / GET HELP |
|---|---|---|
| 1. Employee details + W-4 | Names, addresses, hire dates, roles/work locations; existing or newly completed, signed W-4s. | IRS: get Form W-4 → Use existing employee records. |
| 2. Pay dates + hours | Pay rates; workweek; pay frequency, period and payday; actual hours/breaks; sick-leave policy. | L&I: pay-record guidance → We can review these details together. |
| 3. L&I workers' comp rates | Current risk class, total premium per hour and permitted worker deduction per hour. | Find your L&I rates → Search name / UBI > Workers' comp rates. |
| 4. Unemployment tax rate | Current ESD rate details; check if the total includes the Employment Administration Fund (EAF). | ESD: find your tax rate → Your accountant may already have it. |
| 5. Paid Leave + WA Cares | Confirm employer size, plan and who pays. Tell us about grants, special plans or exemptions. | Paid Leave: small-business guide → WA Cares: employer guide → |
ONLY IF IT APPLIES
Get payroll history and leave balances from your accountant / previous provider.
Bring relevant elections or orders; otherwise say "None."
WA Cares exemption information →