Washington Payroll Laws & Requirements

Washington has no state income tax, yet every paycheck still carries two state deductions. A retail associate earning $1,000 a week has about $8.07 withheld for Paid Family and Medical Leave and $5.80 for WA Cares, the state's long-term care fund. That's the first thing people miss about Washington payroll. Then there's the wage floor: $17.13 statewide, with Seattle and several nearby cities above $21. Add paid sick leave on every hour worked and required meal and rest breaks, and the state scores 4 out of 5 on our Payroll Complexity Score.

Minimum Wage in Washington

The Washington minimum wage is $17.13 an hour in 2026 and rises to $17.73 on January 1, 2027, a 3.5% increase under the Minimum Wage Act. It applies to employers of every size.

A few groups are paid differently:

• Tipped employees get the full minimum. Washington has no tip credit, so tips and service charges can't count toward it.
• Workers aged 14 and 15 can be paid 85% of the minimum: $14.56 in 2026 and $15.07 in 2027.
• City rates go well above the state floor. Seattle is $21.30 for all employer sizes, Tukwila $21.65 and Renton $21.57. Burien, Everett, Bellingham, SeaTac (hospitality and transportation) and unincorporated King County have their own rates too.
• Exempt staff need a salary of at least $80,168.40 a year in 2026, which is 2.25 times the state minimum.

The city rate follows where the work happens. A coffee chain with stores in Seattle and Spokane runs two wage floors more than $4 apart.

Overtime Rules in Washington

Washington sets overtime under state law at time and a half for hours over 40 in a workweek. There's no daily overtime rule. Farm workers have had the same 40-hour threshold since January 1, 2024, after a three-year phase-in from 55 hours.

The exempt test is where most overtime mistakes start. Computer professionals paid by the hour need at least $59.96 an hour in 2026 to be exempt. Below that, an hourly software developer working 50-hour weeks is owed 10 hours of overtime each week. More in overtime compliance software.

Pay Frequency and Payday Rules in Washington

Under WAC 296-126-023, employees must be paid at least once a month on a regular payday. If the pay period is shorter than a month, payday must fall within 10 days after the period ends. Weekly, biweekly and semimonthly schedules all work under that rule.

Final Paycheck Deadlines in Washington

The Washington final paycheck law (RCW 49.48.010) treats firing and quitting the same way. Final wages are due at the end of the established pay period in which the job ended. In practice, that means the regular payday for that period.

An employer that willfully withholds wages can be sued for double the wages plus attorney fees under RCW 49.52.070. Willfully underpaying or keeping false wage records is a misdemeanor. L&I's civil penalty for unpaid wages is being amended in 2026, so check the current figure with L&I before you rely on one.

Washington Income Tax and Local Withholding

Washington has no state income tax, and no city or county withholds an income tax from wages. That doesn't mean nothing comes out of the check.

Washington payroll taxes and premiums include:

• Paid Family and Medical Leave at 1.13% of wages in 2026. Employees pay 71.43% and employers 28.57%. Employers with fewer than 50 employees don't owe the employer share but still collect the employee share. Wages above $184,500 aren't charged.
• WA Cares Fund at 0.58% of wages, paid by the employee. Military spouses, out-of-state residents, veterans with a 70% or higher disability rating and some visa holders can be exempt.
• Seattle's JumpStart payroll expense tax, paid by the employer only. It applies to businesses with large Seattle payrolls, on employees paid $194,452 or more, and can't be withheld from pay.

PFML reports are quarterly, and late fees and interest started on August 1, 2026. For where premium setups usually break, read what operators get wrong in payroll tax management.

Payroll Record Retention in Washington

WAC 296-126-050 requires employers to keep payroll records for at least 3 years. Each record needs the employee's name, address, job, dates of employment, pay rate, pay each period and hours worked.

Where Washington Payroll Goes Wrong

Most errors come from rates that weren't updated in January, or from setups copied from a state that has a tip credit or no premiums.

• Local minimum wage: Seattle or Tukwila hours paid at the state rate. What it costs: Back wages of more than $4 an hour.
• No tip credit: Tipped staff paid below $17.13 with tips counted toward it. What it costs: The full gap, for every hour worked.
• Exempt salary: Salaries not raised to the new threshold in January. What it costs: Exempt status lost, with overtime owed.
• PFML: Old rate or wrong employee/employer split still loaded. What it costs: Short or over-withholding on every check, plus late fees.
• WA Cares: Premium skipped, or withheld from an approved exempt employee. What it costs: Back premiums owed, or refunds to staff.
• Rest breaks: Staff working more than 3 hours straight without a 10-minute break. What it costs: Wage claims for the missed paid time.
• Final paycheck: Final pay held past the end of the pay period. What it costs: Double damages if the delay is willful.

Washington payroll laws let workers recover double what was willfully withheld, so small gaps grow fast. Here's how to catch underpayment before it becomes wage theft.

What Changes in Washington in 2027

• Jan 1, 2027 (confirmed): State minimum wage rises to $17.73. L&I announced it on September 30, 2026. The rate for 14- and 15-year-olds rises to $15.07.
• Jan 1, 2027 (confirmed): City rates rise. Seattle goes to $22.14, Tukwila to $22.45 and Renton to $22.28. Everett, Burien and unincorporated King County also go up. Bellingham and SeaTac haven't posted 2027 rates yet.
• Jan 1, 2027 (confirmed): The exempt salary threshold splits by employer size. Employers with 51 or more employees need $92,196 a year (2.5 times the minimum). Employers with 50 or fewer need $82,976.40 (2.25 times) until 2028.
• Jan 1, 2027 (confirmed): PFML premiums rise to 1.2%. Employees pay 70.7% and employers 29.3%. Load the new rate and split before the first January run.
• Jun 30, 2027 (confirmed): Noncompete agreements become void. Employers must notify affected workers by October 1, 2027.

Running Payroll in Washington Without Errors

Before each payday:

• Match each location's rate to the state or city minimum, using the city where the work happened.
• Confirm no tipped employee is paid below the full minimum wage.
• Check that PFML is withheld at the current rate and split, and that WA Cares is withheld from everyone without an approved exemption.
• Check exempt salaries and hourly computer professional rates against this year's thresholds.
• Confirm paid sick leave accrues at 1 hour per 40 hours worked, for every hourly employee.
• Flag every separation in the period and confirm final pay goes out with that period's payroll.