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. Gusto will pay this insurance premium on your behalf to the state. Once you have completed the registration process above, you can find the rates assigned to you online:
- Visit the Washington State Department of Labor & Industries website here.
- Select to search by your company name, Workers' Comp account number, or WA UBI number and enter the information.
- Choose on your company name from the list of results.
- Click Workers' Comp Rates.
- Find your Risk Classification, Composite Rate (Hourly Rate) and Employee Deduction (Employee Withholding).
- Note: Gusto does not support class codes that use square footage as part of the tax calculation (ie. the dry wall industry).
- Enter the information into Gusto and you're all set.
If you are viewing your rates from the WA Workers' Compensation Rate Notice, make sure to input the Total Hourly Rate (combined Hourly Employer Contribution + Hourly Employee Withholding) as the Hourly Rate, and the Hourly Employee Withholding as the Employee Withholding.
Examples of employees that may be exempt from Workers Comp
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Sole proprietors, partners and some LLCs without employees (owners only)
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Coverage is optional (link: https://lni.wa.gov/insurance/insurance-requirements/do-i-need-a-workers-comp-account/llc-members)
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Self-insured employers (note: private carrier coverage is not permitted)
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Employees based in Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, or Wyoming
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Washington has reciprocal agreements with these states about when and how they accept their workers’ compensation coverage.
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Some corporate officers are exempt from mandatory coverage.
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Some for-hire vehicle/drivers.
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Some maritime workers.
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Some contractors.
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Most volunteers.
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Some trucking contractors.
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Household employment, such as domestic workers, home gardeners, maintenance or repair workers in private homes.
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Jockeys while participating in or preparing horses for race meets licensed by the Washington horse racing commission.
For more information about required coverage and exemptions, please visit this website or call (360) 902-4817.
Unemployment Tax
New employers are assessed an unemployment tax rate based on their industry. In 2020 the new employer rates can range from 1%-5.4% with a wage base of $52,700. If you're unsure about your rate, it is best to call the agency's Rate Unit at (855) 829-9243, option 3.
Paid Family & Medical Leave (PFML)
Washington's Paid Family and Medical Leave program launched in 2019. The total premium amount due each year is up to 0.4% (up to the Social Security wage base) made up of both employee and company contributions. Employers with less than 50 employees are exempt from paying the employer premium, however, the employee premium is still required. Employers with 50 or more employees are required to pay the employer premium.