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How to Do Payroll in Washington State


Payroll in Washington State requires small business owners to withhold, report, and pay payroll taxes to the state government. This process can be complicated, but we’re here to help. This step-by-step guide will show you how to do payroll in Washington state so that you can keep your business compliant and avoid penalties.

Payroll in Washington, here's a checklist:

  1. Determine which taxes you need to withhold from your employees’ paychecks.
  1. Withhold the appropriate amount of federal income tax, Social Security tax, and Medicare tax from each employee’s paycheck.


  2. Deposit the withheld taxes to the appropriate federal agencies.
  3. Report and pay Washington state unemployment taxes.
  1. Report and pay Washington state disability insurance taxes.
  1. File quarterly wage reports with the Employment Security Department.
  1. File an annual employer report with the Employment Security Department.
  1. Give each employee a W-2 form at the end of the year.
  1. Provide each employee with a 1099-MISC form if they are an independent contractor and you paid them $600 or more during the year.
  1. Keep accurate records of all your payroll taxes and filings for at least three years.

Follow these steps and you’ll be able to do payroll in Washington state like a pro! If you have any questions or need assistance, don’t hesitate to reach out to your top-rated tax professional in Washington, Dreis Accounting Services.


Doing payroll in Washington state may seem daunting, but it doesn’t have to be! With careful planning, you can ensure that your business stays compliant and avoids going down the tax resolution route. If you have any questions along the way, be sure to reach out to schedule your personalized payroll consultation