To hire employees in Washington state, you need a federal Employer Identification Number, a Washington Business License Application that opens your workers’ compensation and unemployment insurance accounts in one step, and a small stack of forms collected from each new hire before or shortly after their first day. Washington has no state income tax, which trims one form from your payroll setup but does nothing to reduce the other obligations. The sequence below is the order you’ll actually run into these tasks.
Get a Federal Employer Identification Number
Every business with employees needs an Employer Identification Number (EIN) from the IRS before touching anything at the state level.1Internal Revenue Service. Get an Employer Identification Number The nine-digit number works like a Social Security number for the business and appears on every tax filing, insurance report, and quarterly return from here on. Apply online through the IRS and you receive the number immediately, at no cost. If you already have an EIN from forming a corporation or LLC, you don’t need a second one just because you’re bringing on employees.
File the Washington Business License Application
With the EIN in hand, file a Business License Application through the Washington Department of Revenue’s Business Licensing Service. When you complete it, check the “Hire Employees” option so the state knows to open your employer accounts.2Washington Department of Revenue. Hiring Employees File no sooner than 90 days before you plan to bring anyone on. That single application registers you for workers’ compensation with the Department of Labor and Industries and for unemployment insurance with the Employment Security Department at the same time.
You can file through the My DOR portal or by mailing a paper form. Online applications process in roughly 10 business days; paper ones can take up to six weeks.3Washington Department of Revenue. Apply For A Business License The fee to open a new business is $50, with additional fees for any endorsements you add.4Washington Department of Revenue. Variable Business License Processing Fees Corporations, partnerships, and LLCs must register with the Secretary of State before filing the license application.
Once approved, you receive a Unified Business Identifier (UBI) number. That’s your single identifier for state tax filings, insurance reports, and any later business changes.3Washington Department of Revenue. Apply For A Business License
City Business License Endorsements
Many Washington cities require their own business license endorsement, and hundreds of them participate in the state’s unified system, so you can add local endorsements on the same BLS application.5Washington Department of Revenue. City Endorsements Seattle, Tacoma, Spokane, Bellevue, and Vancouver are all on the list. If your city isn’t, contact it directly. Adding city endorsements can add two to three weeks to processing time.
Set Up Your Employer Insurance Accounts
Filing the license application creates several mandatory accounts. None of them are optional, and the penalties for skipping them are steep.
Workers’ Compensation
Washington is one of four states where workers’ compensation runs through a state fund rather than private insurers. The Department of Labor and Industries assigns your business a risk classification based on the work employees actually perform, and your premium rate follows that classification.6WA.gov. Rates for Workers’ Compensation An office worker costs far less to insure than a roofer. You report hours and pay premiums quarterly. Both you and your employees contribute, with the split depending on the classification.
Unemployment Insurance
The Employment Security Department assigns an unemployment tax rate based on your industry and, over time, your claims history. New employers start at a default rate that adjusts as experience develops.7Washington State Legislature. Washington Code Chapter 50.12 – Administration The tax applies to wages up to a taxable base ESD sets annually. The employer pays the full unemployment premium; nothing comes out of the employee’s paycheck.
Paid Family and Medical Leave
The Paid Family and Medical Leave (PFML) program gives employees paid time off for serious health conditions, bonding with a new child, and certain military-connected situations. The 2026 total premium is 1.13% of gross wages up to the Social Security cap of $184,500.8Washington State’s Paid Family and Medical Leave. Estimate Your Paid Leave Payments Employees pay about 71.43% of that premium; employers with 50 or more employees pay the remaining 28.57%.9Washington State Legislature. Washington Code Chapter 50A.10 – Premiums
With fewer than 50 employees, you owe no employer portion, but you still must withhold the employee share and remit it to ESD each quarter.8Washington State’s Paid Family and Medical Leave. Estimate Your Paid Leave Payments Skipping those quarterly reports, even for small amounts, brings penalties and interest.
WA Cares Fund
The WA Cares Fund is a long-term care insurance program funded entirely by employees. The rate is 0.58% of gross wages with no wage cap.8Washington State’s Paid Family and Medical Leave. Estimate Your Paid Leave Payments You withhold and remit quarterly. There is no employer-side contribution unless you choose to cover it.
Decide Employee or Independent Contractor Before Work Begins
Before anyone starts, decide whether the person is genuinely an employee or an independent contractor. Washington presumes workers are employees unless the hiring business can show the worker is free from the company’s control, performs work outside the company’s usual line of business, and operates an independently established trade or occupation.10WA.gov. Independent Contractors All three have to be true. Miss one and the worker is an employee for insurance and tax purposes.
Getting this wrong is one of the more expensive mistakes a new employer can make. L&I can assess up to 10 times the workers’ compensation premiums you should have been paying if it finds you willfully misrepresented your workforce, and late-payment penalties and monthly interest stack on top.11WA.gov. Penalties and Interest for Filing Late If an arrangement is close to the line, resolve it before work starts, not after an auditor arrives.
Wage and Hour Rules You Have to Follow From Day One
Minimum Wage
Washington’s 2026 minimum wage is $17.13 per hour, adjusted annually based on the Consumer Price Index.12WA.gov. Minimum Wage – L&I Some cities set higher local rates. Seattle’s is notably higher. If your workplace sits in a city with its own ordinance, you owe the higher figure.
Meal and Rest Breaks
Employees get a paid 10-minute rest break for every four hours worked, scheduled as close to the midpoint as possible, and no one can be required to work more than three hours without a break. Shifts longer than five hours require a 30-minute meal period, taken between the second and fifth hour.13WA.gov. Rest Breaks, Meal Periods and Schedules An employee who works more than three hours past a scheduled shift gets an additional 30-minute meal period.
Paid Sick Leave
Every employee accrues at least one hour of paid sick leave for every 40 hours worked, starting on their first day.14WA.gov. Paid Sick Leave Minimum Requirements Accrual runs on all hours worked, including overtime. There is no waiting period and no exemption for part-time workers. Have a tracking system in place before the first shift.
New-Hire Paperwork for Each Person
Form I-9
Federal law requires you to verify identity and work authorization using Form I-9. The employee completes Section 1 on or before their first day. You complete Section 2, which involves examining original documents such as a passport, or a driver’s license paired with a Social Security card, within three business days of the hire date.15U.S. Citizenship and Immigration Services. Completing Section 2, Employer Review and Attestation Washington does not require private employers to use E-Verify, though you may use it voluntarily.
Form W-4
Each employee completes a federal Form W-4 so you can calculate federal income tax withholding.16Internal Revenue Service. About Form W-4, Employee’s Withholding Certificate Washington has no state income tax, so there is no state withholding form.17Washington Department of Revenue. Income Tax Employers coming from other states sometimes look for a state W-4 equivalent; it does not exist here.
Pay Transparency in Job Postings
Under RCW 49.58.110, employers with 15 or more employees must include the wage or salary range and a general description of benefits in every job posting.18Washington State Legislature. Washington Code 49.58.110 – Disclosure of Wage or Salary Range by Employer When an existing employee is offered a transfer or promotion, you must provide the pay range for the new position on request. Through July 2027, employers who receive written notice of a non-compliant posting have five business days to correct it before penalties apply.
Fair Chance Act Limits on Background Checks
Washington’s Fair Chance Act prohibits all employers from asking about criminal history on applications or in early stages of hiring. You cannot run a background check or ask about convictions until after you have determined the applicant is otherwise qualified for the position.19Washington State Attorney General. Fair Chance Act Job ads with language like “no felons” are also prohibited. Exceptions apply to positions with unsupervised access to children or vulnerable adults, law enforcement roles, and certain financial industry positions.
Recordkeeping
Keep payroll records, including each employee’s full legal name, Social Security number, address, pay rate, and hours worked, for at least three years.20U.S. Department of Labor. Fact Sheet 21 – Recordkeeping Requirements Under the Fair Labor Standards Act Records supporting wage calculations, such as time cards, schedules, and deduction authorizations, should be kept for at least two years. These records must be available if a federal or state auditor requests them.
Report Each New Hire Within 20 Days
Washington law requires you to report every newly hired or rehired employee to the Department of Social and Health Services Division of Child Support within 20 days of their start date.21Washington State Department of Social and Health Services. New Hire Reporting This applies regardless of the employee’s age or hours. The easiest route is online through Secure Access Washington. The state uses the data primarily to enforce child support orders and detect unemployment insurance fraud.
Post the Required Workplace Notices
Before employees start, put up the mandatory posters where workers can see them. L&I requires three free posters: Job Safety and Health Law, Your Rights as a Worker, and Notice to Employees — If a Job Injury Occurs, with a separate version for self-insured businesses.22WA.gov. Required Workplace Posters You can download or order them at no cost from L&I.
You also need federal posters from the Department of Labor covering the Fair Labor Standards Act, FMLA, employee polygraph protection, and USERRA, plus the EEOC’s “Know Your Rights” poster and state posters from ESD on unemployment benefits, Paid Family and Medical Leave, and domestic violence resources. For remote employees, send digital copies or links.
If You Plan to Hire Anyone Under 18
Hiring a minor adds a step. You must obtain and post a Minor Work Permit at every workplace where the minor will work, as a separate endorsement on your business license through the Business Licensing Service.23Washington Department of Revenue. Minor Work Permit You also need an active industrial insurance endorsement. Hiring anyone under 14 requires additional documentation submitted to L&I before approval. Washington restricts the kinds of work minors can perform and limits their hours, particularly during the school year, so check L&I’s youth employment rules before you schedule shifts.