Washington · 2026 employer costs
How much does an employee cost in Washington?
Washington has no state income tax, so the employer-side bill is simpler than in most states: federal Social Security and Medicare plus Washington's unemployment insurance rate and wage base. Below is a 2026 estimate for a $60,000 hire, and the full calculator to run your own numbers.
A $60,000 Washington employee costs about
$65,250
in mandatory employer costs alone — before any optional benefits. SUI is estimated at the 1% statutory minimum; your industry rate may be higher.
- New-employer SUI: set from your industry's average rate, at least 1%, on the first $78,200 of wages — there's no single new-employer rate.
- Other employer-paid state charges: WA Employment Administration Fund at 0.03% up to $78,200; WA Paid Family & Medical Leave (employer share) at 0.32% up to $184,500 (50+ employees only).
- Standard FUTA rate applies: 0.6% — this state is not projected to face a federal credit reduction for 2026.
- No state income tax, for either employer or employee.
- These rate rules were checked directly against the WA Employment Security Department (ESD), current as of 2026-09-23.
For 2026, new employers pay 115% of the average rate for their industry, with a 1% federal minimum, for their first 2½–3 years; the Employment Administration Fund fee is shown as its own line. The calculator uses the 1% floor unless you enter the rate on your ESD notice. The $78,200 wage base is up from $72,800.
What you’d pay this person — before taxes or benefits.
Used only for employer-size rules. The estimate below is for one new hire.
Set by your industry average. Minimum 1%. Left blank, that minimum is used.
Health insurance, 401(k) match, bonus, and more. Off by default.
2026 calculation assumptions▾
Source: SSA / IRS
Source: IRS
Source: IRS / U.S. Dept. of Labor
For 2026, new employers pay 115% of the average rate for their industry, with a 1% federal minimum, for their first 2½–3 years; the Employment Administration Fund fee is shown as its own line. The calculator uses the 1% floor unless you enter the rate on your ESD notice. The $78,200 wage base is up from $72,800.
0.02%–0.03% depending on rate class; the 0.03% upper figure is used here.
This estimate assumes your business is a new employer (not yet experience-rated) for unemployment insurance purposes. An established business’s actual SUI rate may be higher or lower depending on its claims history. “Current employees” is used only to check headcount-based thresholds (paid sick leave tiers, the ACA’s 50-employee mark) — it doesn’t change the tax rates themselves.
*Statutory minimum — your industry rate may be higher
Reverse the question
Not “what will it cost?” — what can I afford?
Enter what your business can put toward one new hire each month, all-in. We’ll work backward through WA payroll taxes to the highest salary it supports.
Estimated affordable salary
$77,252
per year
Washington hiring guide
What makes hiring in Washington different?
Washington's UI rate for a new business depends on its industry. For 2026, the Employment Security Department (ESD) charges new employers 115% of the average rate paid by all businesses in their industry. Federal law keeps it at 1% or higher. You stay a "new employer" until you've been in business for about 2½ to 3 years. After that, ESD moves you to one of 40 rate classes based on the unemployment benefits charged to your own account.
The tax applies to the first $78,200 of each employee's 2026 wages, up from $72,800 in 2025, so the UI cost keeps rising with salary all the way up to $78,200. ESD also adds an Employment Administration Fund fee of 0.02% to 0.03%, depending on your rate class.
Washington has no state income tax, but it has its own Paid Family & Medical Leave (PFML) program. The 2026 premium is 1.13% of wages, up from 0.92% in 2025. Employees pay 71.43% of it and employers pay 28.57%, which works out to about 0.323% of wages for the employer. Only employers with 50 or more employees owe the employer share. Smaller employers still have to collect their employees' premiums and send them to ESD.
How this calculator handles Washington
Leave the SUI rate blank and the calculator uses the 1% minimum. Your 115%-of-industry rate may be well above that, so enter the rate from your ESD notice if you have it. The Employment Administration Fund fee is its own line, at the 0.03% upper end.
The PFML employer line appears only when your "Current employees" plus this new hire reaches 50. ESD doesn't size businesses that way. Each September 30, it averages your headcount over the previous four quarters from your wage reports. So a business growing past 50 may still be treated as small until ESD's next determination. If your ESD classification differs from what the calculator shows, go by ESD.
One more detail for small businesses: those with 150 or fewer employees can apply for grants of up to $3,000 when a worker takes Paid Leave. A business under 50 that takes a grant then pays the employer share for the next three years (12 quarters).
Official sources
- Washington ESD — How we determine tax rates
- Washington ESD — 2026 tax rates for employers (PDF)
- Washington ESD — Taxable wage base
- Washington ESD — Paid Family & Medical Leave premium rate increases to 1.13% in 2026
- Washington Paid Leave (ESD) — Small businesses: 150 employees or fewer
Last verified: September 23, 2026