Seattle, Washington
Seattle employer costs: minimum wage, taxes and paid leave
Seattle sets its own minimum wage, the highest of any large U.S. city in this atlas. The minimum wage is $22.14 an hour from Jan 1, 2027. A $50,000 employee costs a new employer about $62,373 a year here in 2026.
Calculate the cost of an employee in Seattle
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.
Seattle employer rules on top of Washington's
What Seattle adds, then the federal and Washington lines every employer here pays. The full Washington breakdown is on the state page.
- Seattle minimum wage
$21.30 in 2026, $22.14 in 2027
$21.30 an hour; $22.14 from Jan 1, 2027.
per Seattle Office of Labor Standards, as of Jan 1, 2026
- 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
Checked against each source on Oct 23, 2026.
Two worked examples in Seattle
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 $22 an hour
$22 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,028 hours | $44,616 |
|---|---|
| Paid sick leave required by law52 hours | $1,144 |
| Social Security (employer share)6.2% of $45,760 | $2,837 |
| Medicare (employer share)1.45% of $45,760 | $664 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $45,760 | $458 |
| Workers' compensation (state index rate)$1.35 per $100 of payroll | $618 |
| Health insurance (single coverage, state average)average employer contribution | $7,331 |
| Total cost a year | $57,709 |
26.1% on top of pay · $28.46 per hour worked
What changes in 2027
- Seattle's minimum wage becomes $22.14 an hour on Jan 1, 2027. per Seattle Office of Labor Standards, as of Jan 1, 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
What is the Seattle minimum wage in 2027?
$22.14 an hour from Jan 1, 2027, up from $21.30: $46,051 for a full-time year in Seattle.
What is the minimum wage in Seattle in 2026?
$21.30 an hour in Seattle, or $4.17 above Washington's $17.13.
How much does an employee cost in Seattle?
$62,373 a year for a $50,000 employee in Seattle (new employer, 10 staff), 24.7% above pay.
What payroll taxes do employers pay in Seattle?
Only federal and Washington payroll taxes: $4,367 a year on a $50,000 Seattle salary.
Is paid sick leave required in Seattle?
Yes, under Washington's rule: 52 paid hours a year for a full-time Seattle employee at 100 staff.
What does a minimum-wage employee cost in Seattle?
$56,107 a year at $21.30 an hour full time in Seattle: $27.67 per hour worked.
More employer cost pages
Washington
Other cities with their own rules
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.