Washington Tax Setup Guide
- Last updated on February 8, 2024 at 11:14 PM
Welcome to our State Tax Setup Guide, an essential resource designed for employers navigating the complexities of payroll tax compliance. With each state's unique rules and regulations, managing state tax requirements can be daunting. Our guide simplifies this process, providing three core components: State-Specific Requirements, Registration Assistance, and Account Number and Rate Retrieval. It is crucial to remember that state tax regulations are subject to change.
Required Tax Items:
There are 7 required tax items you’ll need in order to get setup for payroll.
| Requirement | Format | Agency |
|---|---|---|
Unified Business Identifier (UBI) | 6XX-XXX-XXX (9 digits) | |
Department of Labor & Industries (L&I) Account ID | XXX, XXX-XX (8 digits) | |
| Participant Activation Code (PAC) | XXXXXXXX (Up to 8 digits, add zeros to end if less than 8 digits) | |
| Employment Security (ES) Reference Number | XXX XXXXXX XX X (12 digits) | Washington Employment Security Department |
| Employment Security Department Total Tax Rate | X.XX% | Washington Employment Security Department |
| Employment Administration Fund (EAF) Rate | X.XX% | Washington Employment Security Department |
| Workers’ Comp Experience Factor | X.X% | Washington Employment Security Department |
How to Register:
Tax Accounts
To initiate the process, submit a Business License Application to the Washington Department of Revenue, which will concurrently establish your unemployment insurance and workers’ compensation accounts. Processing typically takes about 10 days.
If you've already submitted the Business License Application, proceed to the sections below.
Unified Business Identifier (UBI)
Locate your Unified Business Identifier online.
Employment Security (ES) Reference Number
Find your ES Reference Number online..
Department of Labor & Industries (L&I) Account ID
Retrieve your L&I Account ID online.
Participant Activation Code (PAC)
Locate this on the top left of your Employer’s Quarterly Report, Rate Notice, or New Account Letter. Add zeros to the end if your PAC is less than 8 digits.
Tax Rates
Your Employment Security Department Total Tax Rate equals the sum of your Unemployment Insurance Tax Rate and Employment Administration Fund Rate (Employment Security Department Total Tax Rate = UI Tax Rate + EAF Rate).
Unemployment Insurance Tax Rate
You will receive a tax rate based on your industry.
Employment Administration Fund (EAF) Rate
This is either 0.02% or 0.03%. Confirm the applicable rate by contacting the agency at (360) 902-9670.
Workers’ Comp Experience Factor
The Experience Factor for new employers is 1.0. For more information, contact the agency at (360) 902-9670.
How to locate these numbers if you’re already registered:
Locate your Unified Business Identifier online.
Find your ES Reference Number online or on the Tax Rate Notice mailed by the WA State Employment Security Department.
Retrieve your L&I Account ID online.
View your assigned Risk Class Code by visiting lni.wa.gov and searching by entering your Worker’s Compensation Account Number (L&I Account ID).
Locate this on the top left of your Employer’s Quarterly Report, Rate Notice, or New Account Letter. Add zeros to the end if your PAC is less than 8 digits.
You can find your UI Tax Rate and EAF Rate on the Tax Rate Notice sent by the Washington State Employment Security Department. If you can’t locate it, please contact the agency at (360) 902-9670.