Payroll Washington Unique Aspects of Washington Payroll Law and Practice
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Unique Aspects of Washington Payroll Law and Practice
Overview
Navigating payroll in Washington involves understanding some unique aspects and conditions. This article explores key areas such as tax withholding, unemployment insurance, wage and hour laws, and child support withholdings.
Key Highlights
No State Income Tax
Washington does not impose a state income tax, eliminating the need for state withholding deposits and reports. Consequently, there are no state-specific W-2 forms or supplementary wage withholding rates to manage.
Treatment of Benefits
Under Washington law, salary reductions for Section 125 cafeteria plans and 401(k) contributions are taxable for unemployment insurance purposes, unlike federal guidelines.
Unemployment Insurance
The Washington State Employment Security Department oversees unemployment insurance. Key details include:
- Address: Employment Security Department, 212 Maple Park Dr., Mail Stop KG-11, Olympia, WA 98504-5311
- Contact: (360) 902-9360
- Website: [www.wa.gov/esd/ui.htm](http://www.wa.gov/esd/ui.htm)
- Taxable Wage Base: $30,200
- Reporting: Optional quarterly wage reporting on magnetic media
- Record Retention: Four years
Wage and Hour Laws
The Department of Labor and Industries regulates wage and hour laws. Details include:
- Minimum Wage: $7.01 per hour
- Overtime: 1.5 times the regular rate after 40 hours per week
- Reporting New Hires: Employers must report new hires within 20 days, including basic employee and employer details. Penalties apply for late reports.
- Mandatory Direct Deposit: Allowed if compliant with federal Regulation E
Pay Stub and Payment Requirements
- Pay Stub Information: Must include gross and net earnings, pay basis, hours worked, and itemized deductions.
- Payment Frequency: At least monthly, with wages paid no more than seven days after the end of a pay period.
- Final Paychecks: Must be settled by the end of the pay period for both voluntary and involuntary terminations.
- Deceased Employee Wages: Up to $2,500 must be paid to the next of kin in a specified order.
Record Keeping
- Wage and Hour Records: Must be retained for at least three years.
- Unclaimed Wages: Must be reported and given to the state after one year, with records kept for six years.
Child Support Withholding
The Division of Child Support manages child support orders. Important points include:
- Start Withholding: Immediately upon receipt of the order
- Payment Timeline: Within seven days of payday; five days for non-IV-D cases
- Termination Notice: Must be sent promptly
- Fees and Limits: $10 for the first payment, $1 subsequently; withholding limits are 50% of disposable earnings
Conclusion
While this guide provides a comprehensive look at Washington payroll laws, it's essential to stay informed about updates and changes. Always consult with a payroll expert or legal advisor for the most accurate and current information.
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