Washington · 2026 and 2027
Washington employer payroll taxes and employee cost: SUTA from 1% on $78,200
In Washington, a $50,000 employee costs a new employer about $62,373 a year in 2026: 24.7% on top of pay for payroll taxes, unemployment insurance, state leave premiums, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Washington
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Washington employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Washington unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Washington unemployment insurance (SUTA)
At least 1% of $78,200
New employers pay their industry's average rate, at least 1% under federal law, on the first $78,200 of each employee's pay in 2026. After two to three years the rate follows your own claims history. New employers pay 115% of their industry’s average rate, never less than 1%; 1% is used.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026; per Washington Employment Security Department, as of Jan 1, 2026
- Paid Family & Medical Leave (employer share)
0.3228% from 50+ employees
Employers with 50 or more employees pay 28.57% of the 1.13% premium in 2026 (29.3% of 1.2% in 2027), on wages up to the Social Security wage base; smaller employers pay no employer share.
per Washington Employment Security Department, as of Jan 1, 2026; per Washington Employment Security Department, as of Jan 1, 2027
- Paid sick leave
no cap a year
One hour of paid sick leave for every 40 hours worked, with no yearly cap on what is earned; up to 40 unused hours carry over. The hours are paid but not worked, so they raise the cost per hour worked.
per Washington Department of Labor & Industries, as of Jan 1, 2026
- Workers' compensation
$1.35 per $100 of payroll
Index rate for a standard mix of job classes: rank 12 of 51 (1 = highest) and 123% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,331 single / $19,396 family
Average employer contribution per enrolled employee a year at Washington private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$17.13 in 2026, $17.73 in 2027
Washington's rate since Jan 1, 2026. No tip credit. Seattle and other cities set higher local rates From January 1, 2027: $17.73.
per Washington Department of Labor & Industries, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Washington
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,028 hours | $48,750 |
|---|---|
| Paid sick leave required by law52 hours | $1,250 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $50,000 | $500 |
| Workers' compensation (state index rate)$1.35 per $100 of payroll | $675 |
| Health insurance (single coverage, state average)average employer contribution | $7,331 |
| Total cost a year | $62,373 |
24.7% on top of pay · $30.76 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,028 hours | $36,504 |
|---|---|
| Paid sick leave required by law52 hours | $936 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $37,440 | $374 |
| Workers' compensation (state index rate)$1.35 per $100 of payroll | $505 |
| Health insurance (single coverage, state average)average employer contribution | $7,331 |
| Total cost a year | $48,557 |
29.7% on top of pay · $23.94 per hour worked
What changes for Washington employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- Washington's minimum wage becomes $17.73 an hour on January 1, 2027. per Washington Department of Labor & Industries, as of Jan 1, 2027
- Paid Family & Medical Leave (employer share): the employer rate becomes 0.3516% of wages. per Washington Employment Security Department, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Washington?
About $62,373 a year in 2026 for a $50,000 employee of a new Washington employer with 10 staff: $12,373 above pay, of which $7,331 is health coverage, $675 workers' comp and $500 Washington unemployment tax. At $18 an hour full time: $48,557.
What payroll taxes do employers pay in Washington?
Washington new employers pay $4,367 yearly on a $50,000 salary, $500 of it state unemployment tax.
What is the Washington SUTA rate for new employers in 2026?
Washington gives new employers their industry's average rate, at least 1% under federal law, on the first $78,200 of pay ($782 or more per employee).
What is the minimum wage in Washington in 2027?
$17.73 an hour from January 1, 2027, after $17.13 an hour in 2026: $36,878 for a full-time year.
Is paid sick leave required in Washington?
Yes. One hour of paid sick leave for every 40 hours worked, with no yearly cap on what is earned; up to 40 unused hours carry over. That is 52 paid hours a year for a full-time Washington employee at 100 employees.
How much does workers' comp cost in Washington?
$1.35 per $100 of payroll at Washington's index rate (rank 12 of 51, 123% of the median): about $675 on $50,000 of pay.
How much do Washington employers pay for health insurance?
$7,331 a year per employee with single coverage and $19,396 with family coverage, the average Washington private-employer share of $8,712 and $27,618 premiums in 2025.
Does Washington have a paid family leave or disability tax for employers?
Employers with 50 or more employees pay 28.57% of the 1.13% premium in 2026 (29.3% of 1.2% in 2027), on wages up to the Social Security wage base; smaller employers pay no employer share.
More employer cost pages
Cities in Washington with their own rules
States with a similar employer cost
Data and rules for every state
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.