WA · Payroll tax 2026
The true cost of hiring in Washington
Estimate what a W-2 employee costs in Washington and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a Washington hire
Pre-filled with a 1% industry planning default. Adjust SUI, salary, benefits, and the 1099 rate to fit your hire.
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A W-2 hire in Washington costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 1% planning default; the assigned rate varies by industry on the first $78,200 of wages, producing up to about $782 of state UI tax per worker before experience-rating or account-specific adjustments. Washington does not tax wage income. UI rates are industry-average based; 1% is a planning default. 2026 PFML employer share is about 0.323% (50+); WA Cares is employee-only. The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
Washington employer tax facts
| Item | WA |
|---|---|
| SUI planning default | 1% |
| SUI taxable wage base | $78,200 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | None |
| Worker classification test | ABC test |
Extra employer taxes: UI rates are industry-average based; 1% is a planning default. 2026 PFML employer share is about 0.323% (50+); WA Cares is employee-only.
- Paid Family & Medical Leave — 2026 employer share ~0.323% (employers with 50+ employees). WA Cares is employee-only and excluded.
Example: a $75,000 hire in Washington
At a $75,000 base salary with typical benefits, a W-2 employee in Washington costs an employer $100,072 per year — $25,072 above base pay. An equivalent 1099 contract at $75,000 would cost $25,072 less; the breakeven contract rate is $100,072.
Misclassification risk in Washington
Test: ABC test
ABC test; back UI, PFML taxes, civil penalties.
Penalties by stateCompare nearby rates
Washington's 1% new-employer SUI rate sits near Alaska (1%), Delaware (1%), Idaho (1%), Iowa (1%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
Washington hiring-cost FAQ
What SUI rate does HiringMath use for Washington?
The calculator starts with a 1% planning default; the assigned rate varies by industry, applied to the first $78,200 of each employee's 2026 wages. Your assigned rate can differ because of industry, surcharges, and claims history, so replace the default with the rate on your state notice when available.
Does Washington have a state income tax?
No. Washington does not tax wage income, though employers still owe federal payroll taxes and state unemployment insurance.
What should employers know about worker classification in Washington?
ABC test; back UI, PFML taxes, civil penalties. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.