Before you can pay employees, make sure you've registered for payroll in their applicable work state. This can sometimes take several weeks—the sooner you start the process, the sooner you'll have the tax account info required to pay them. Learn more about paying your first employee in a new state by watching this quick tutorial.
Gusto partners with CorpNet to help you register in the state—learn more below.
Corporations in WA must report all corporate officers who are not covered by unemployment insurance (exempt) and their in-state taxable wages in the quarterly reports that are filed for unemployment insurance—learn more below.
Click Register with WA agencies on your own or Find account numbers and rate info (if you're already registered) to learn more about:
Payroll blocked?
Check out our payroll blocked troubleshooting tips article.
Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.
Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.
Here’s a snapshot of the process:
CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.
After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.
When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:
Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.
You can also check the status in your Gusto account:
If your order is still in progress, you can cancel from your Gusto account:
Q: Can I run payroll for my employees before my registration is complete?
A: Not in most cases—you typically need to have a withholding account number and required tax rate(s) in Gusto before you can run payroll.
If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.
Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet, or if the business is undergoing a merger or acquisition?
A: No–you must have a FEIN entered in Gusto to order a state tax registration.
If your company is going through a merger or being acquired, CorpNet cannot assist with registration. Work with your tax advisor and state agencies directly to navigate this change and register your business.
Q: Where can I see all my tax information?
A: You can see all tax details in the following locations:
Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.
Q: What if I'm not liable for unemployment yet (referring to the minimum wage threshold in some states)?
A: In order for CorpNet to start the registration process for an unemployment account number before you're liable, you can:
Q: Can I register with CorpNet if the responsible party is based internationally and does not have an ITIN/SSN?
A: CorpNet may be able to assist directly—reach out to [email protected] or call 1(888) 449-2638.
Q: My company is a nonprofit—why can't I enter 0% in the responsible party section, or add a commercial owner?
A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI. Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.
Some states require that an individual owner be listed on the account. If you're a non-profit and not sure how to proceed, contact CorpNet directly at [email protected] or call 1(888) 449-2638.
Q: Does CorpNet help with state tax account closures?
A: No—you'll need to close the tax account on your own.
Click the dropdowns below to learn how to register with state and how to give Gusto the third party access (TPA) we'll need to file and pay certain taxes on your behalf.
There are two options for registration, each with its own timeline for getting you the necessary tax account information you'll need before you can run payroll.
The letter and packet will be sent to you 10 days after registering online, or within 6 weeks if registering by mail.
Once a valid Washington work address has been added in Gusto for one or more employee(s), add the tax account information you got in the letter:
Include all other lines (such as social cost) from the SUI rate notice.
If you need to update a tax account number after one has already been entered: contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
Workers' Compensation insurance protects and covers your business against injuries and illness that could occur as a direct result of the work done while your employees are on the job.
Washington requires that employers get their coverage through a state-operated fund—as such, Gusto will pay this insurance premium on your behalf to the state.
Once you've filed your business license (see instructions in the dropdown above), you can find the workers' comp rates assigned to you online.
Heads up: Gusto does not support class codes that use square footage as part of the tax calculation (ie. the dry wall industry).
If an employee has multiple risk class codes, you'll need to assign them a job for each role/risk class code, and then edit the risk class code for each role using the instructions below.
Sole proprietors, partners and some LLCs without employees (owners only)
Coverage is optional (link: https://lni.wa.gov/insurance/insurance-requirements/do-i-need-a-workers-comp-account/llc-members)
Self-insured employers (note: private carrier coverage is not permitted)
Employees based in Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, or Wyoming
Washington has reciprocal agreements with these states about when and how they accept their workers’ compensation coverage.
Some corporate officers are exempt from mandatory coverage.
Some for-hire vehicle/drivers.
Some maritime workers.
Some contractors.
Most volunteers.
Some trucking contractors.
For more information about required coverage and exemptions, please visit this website or call (360) 902-4817.
When you filed the business license application, you should have received a letter from your new Workers' Comp account manager, and a packet of information which will include your unemployment rate (based on your industry).
If you're unsure about your rate, call the agency at (855) 829-9243, option 3.
If you need to run payroll and do not yet have your company-specific unemployment rate—we just suggest you add the "New employer SUI tax rate" specific to Washington in the meantime.
Once a valid Washington work address has been added in Gusto for one or more employee(s), add your tax account information:
After you've received your UBI account number from the state, you'll need to register for Paid Family and Medical Leave.
This is done online through your SAW (Secure Access Washington) portal by adding Paid Leave to your online services.
Once you've established and logged into your SAW account, follow the instructions below to add your account to the Paid Family and Medical Leave’s system.
Gusto withholds and pays the employee-premiums for this tax. Employers have the option to cover some or all of their employees’ PFML deductions—learn how below.
Employers with less than 50 employees
These companies are exempt from paying the employer premium, however, the employee premium is still required.
These companies can choose to pay the employer premiums to be eligible for WA ESD’s small business grants, but this is not supported in Gusto—for more information on this, head to the WA PFML website.
Employers with over 50 employees
Employers with 50 or more employees are required to pay the employer premium—Gusto can pay the employer-premium on your behalf, so long as you've let us know you're subject to the tax in your Gusto account. If you don’t take any action, we won’t pay employer contributions on your behalf.
First, a few reminders:
Set the percentage of employee-deductions for PFML you'd like to cover:
Premium calculations and other PFML resources
The total premium amount due each tax year can vary (up to the Social Security wage base) and is made up of both employee and company contributions. For updated rate information, please see the Premium Calculator.
Use the resource(s) below to find additional information about WA PFML:
If you've already registered in the state, you'll need to enter your tax account details in Gusto to pay employees.
You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above in this article.
Unified Business Identifier (UBI)
Existing businesses can search their UBI account number on the Department of Revenue website.
UBI numbers typically start with a 6.
Employment Security Department (ESD) account numbers
If you've run payroll in Washington in the past, you can find your ESD account numbers on the Quarterly Tax and Wage Detail Reports (form 5208 A).
You can also find both your ESD and UBI numbers on your "annual tax rate" notice from the Employment Security Department.
If you don't know your account numbers, call the ESD at (360) 890- 3500.
You can find your unemployment account number and rate by:
Do not include the EAF rate when entering your rate in Gusto. Include all other lines (such as social cost) from the SUI rate notice.
You can find your account number by logging into your WA L&I account.
Once you've entered your Washington L&I account number in Gusto, we'll generate a third-party authorization (TPA) form you'll need to sign.
Without the required third party authorization (TPA), we're unable to file your tax returns to WA L&I. This means, if you're coming to Gusto from another payroll provider, you'll need to transfer third party authorization (TPA) to Gusto. To do so:
Employers are assigned a Participation Activation Code (PAC) for their Workers’ Comp Insurance—you can find the PAC on your Workers’ Comp "new account letter" and "annual rate notice".
The PAC number is a 3 to 8-digit number. If you don't know your number, contact the Washington L&I agency at (360) 902-4817.
Heads up: Gusto does not support class codes that use square footage as part of the tax calculation (ie. the dry wall industry).
Enter risk class codes and rate information in GustoIf an employee has multiple risk class codes, you'll need to assign them a job for each role/risk class code, and then edit the risk class code for each role using the instructions below.
Gusto withholds and pays the employee-premiums for this tax.
Employers with less than 50 employees
These companies are exempt from paying the employer premium, however, the employee premium is still required.
If you're looking to help partially or fully pay the employee-specific premiums, Gusto does not currently support this. You can issue non-taxable reimbursements at the end of quarter to repay all or a part of the amount(s) deducted from employees.
Employers with over 50 employees
Employers with 50 or more employees are required to pay the employer premium—Gusto can pay the employer-premium on your behalf, so long as you've let us know you're subject to the tax in your Gusto account. If you don’t take any action, we won’t pay employer contributions on your behalf.
Let Gusto know whether you're subject to the employer portion of the tax:
Premium calculations and other PFML resources
The total premium amount due each tax year can vary (up to the Social Security wage base) and is made up of both employee and company contributions. For updated rate information, please see the Premium Calculator.
Use the resource(s) below to find additional information about WA PFML:
Once a valid Washington address has been added in Gusto for one or more employee(s), you can add your tax account information:
Beginning with checks dated July 1, 2023, and after, Gusto will collect WA CARES premiums from employees (the same as we already do for PFML).
The WA CARES fund allows Washingtonians access to long-term care when they need it. Here’s a snapshot of how it works:
If you’re already registered for Paid Family Medical Leave (PFML) in Washington and have a “UBI” number, you don’t need to register again. The Washington Employment Security Department (ESD) is working on updating their PFML platform to include WA CARES.
Requirements
Employers do not contribute, employees pay 100% of the premiums, through a payroll deduction of 0.58% per $100. At this time, there is no wage base limit for the premiums.
Businesses must collect the employee-premiums for employees whose work is localized in WA and are required to report employees’ wages and hours. You’ll typically collect WA CARES premiums and file reports for the same employees who pay PFML premiums.
Eligible employees can apply for an exemption, and if approved, they must present the ESD’s exemption approval letter to all current (and future) employers.
All full-time and part-time employees are eligible to participate in the program, unless they’ve received an approved exemption letter.
In addition to living out of state, a few other conditions make somebody working in WA eligible for exemption from WA CARES.
WA CARES is long-term care, which consists of help with daily activities like bathing, eating, dressing, taking medications, and assistance in the bathroom. Long-term care is not the same as medical care and isn’t covered by health insurance or PFML.
At the end of each quarter Gusto will ask you to complete a to-do item on your Home page so we can comply with this requirement. Below are the two questions you will see:
Corporate officers are all officers, including those not listed in Gusto, who are exempt from Washington state unemployment tax and are not already being reported on the quarterly Washington UI Tax and Wage Report.
Officer earnings are the combined wages or earnings for all non-covered corporate officers.
Visit the Washington State Employment Security Department website (ESD) to learn more about how to define a corporate officer and the law on unemployment-insurance coverage for corporate officers. You can also contact the ESD at (855) 829-9243.
If the number of officers or officer earnings have previously been misreported on any quarterly reports, you can amend this portion of the filing by following the directions below.
You can follow up with your request by contacting Employment Security Department's accounting unit directly at [email protected].
Beginning Jan 1, 2021 through Dec 31, 2040, employers doing business in the city of Seattle may be subject to a payroll expense tax—learn more below.
Gusto does not support this tax but we’ll continue to monitor the impact to our customers and reassess the decision in the years to come.
The $7 million exemption threshold is based on the prior year's compensation paid to Seattle employees—learn more in the dropdown below about what should be included in compensation calculations.
If you’re subject to the tax in 2021 (based on your 2020 compensation data), the next step is to use the current year's compensation paid in Seattle to determine the payroll expense tax due for 2021.
For this tax, compensation has the same meaning as it does for the WA Family and Medical Leave program.
The total payroll expense for employees in Seattle with an annual compensation of $150,000 or more, starting with the first dollar paid, must be included in the amount subject to the payroll expense tax.
Compensation calculations include:
Compensation does not include:
You can build a custom report in Gusto using the instructions found in this article to help with finding annual compensation totals.
The table below is based on the total Seattle payroll expense subject to the tax.
Calendar year 2021
All quarterly amounts should be consolidated and reported on Q4 2021 reports—due Jan 31, 2022.
Calendar year 2022
If you have questions about this process, contact the agency directly at (877) 693-4435 or by email at [email protected].
Fling returns as a preparer on behalf of another business?
Create a Preparer Account in FileLocal to file returns on behalf of your client—the client will need to grant you permission to file their returns in FileLocal.
Check out the Seattle Department of Finance and Administrative Services 2023 Payroll Expense tax updates.
Where to find the forms available in your account
Head to the Taxes & compliance section and select Tax documents.
Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.
Asterisk info—only if applicable
Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.
You can confirm tax payments were made by running an agency payments report.