Washington Employer Registration: UI, Paid Family and Medical Leave, WA Cares and Workers' Comp Accounts

Hiring your first employee in Washington means registering with several state agencies, and each one handles a different piece of the job. The good news is that most of the setup starts in one place, the Department of Revenue's business license, and the rest follows in a predictable order. This guide covers the Washington employer registration steps, the accounts you will open, what each one costs, and where the paperwork goes.

Informational only: This guide is general information about Washington employer registration. It is not legal, tax, or payroll advice. Rates, wage bases, and deadlines change, so confirm current figures with the agency named in each section. For complex situations, such as owner compensation, employees in other states, or worker classification, consult a qualified attorney or CPA.

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Who needs to register, and when

Washington has no corporate income tax and no personal income tax on wages. It does have a statewide gross receipts tax, the business and occupation (B&O) tax, and the state business license is the document that connects you to most of the employer obligations. The timing rule is simple: you need a business license if you plan to hire within 90 days.

The state business license is also required if your business:

needs city, county, or state endorsements
operates under a name other than the owner's full legal name
sells anything subject to sales tax, which carries a 6.5% state rate
has gross income of $12,000 per year or more
owes any tax or fee to the Department of Revenue
buys or processes specialty wood products, or meets nexus thresholds

Register before your first payroll, not after. Wages paid before your accounts exist create reporting gaps you will have to fix later.

Start with your legal structure

Sole proprietors and general partnerships do not file with the Secretary of State. If you form a limited liability company (LLC) or a corporation, you file through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov. An LLC files a Certificate of Formation with Initial Report for $180. A corporation files Articles of Incorporation with Initial Report for the same $180. Corporations, LLCs, and LLPs must be on file with the Secretary of State before you submit the Business License Application, so the entity comes first.

Two details cause most of the problems. First, an LLC name must include Limited Liability Company, Limited Liability Co., L.L.C., or LLC. It must also be distinguishable from every other business name on record, and it cannot include words such as bank, banking, trust, or cooperative under RCW 23.95.305. If you need time to settle on a name, a name reservation costs $30 and lasts 180 days.

Second, every business needs a registered agent in Washington, which is the term the state uses. The agent must consent to serve, supply an email address, and have a physical street address in Washington. PO Boxes and private mailbox addresses are not accepted. You can change your registered agent or registered office with no fee, so choose a commercial agent or a noncommercial one who will be reliably available.

The business license is the front door

The Business Licensing Service (BLS), part of the Department of Revenue, runs Washington's statewide business license through one Business License Application at dor.wa.gov. The application issues your 9-digit Unified Business Identifier (UBI) and can add trade names and state and city endorsements in the same filing. Your unemployment insurance account and your workers' comp account are both endorsements on this license, so this is where employer registration begins.

The Business License Application carries a $50 processing fee to open or reopen a business. Endorsement fees are separate, and this guide does not list their amounts, so check the figures on the Department of Revenue page before you file. Processing times vary by filing method:

Online applications take about 10 business days.
Add 2 to 3 weeks if city or state endorsements need approval.
Mailed applications can take up to six weeks.

If you operate under a name other than your legal name, register that trade name on the same application. A trade name costs $5 each, plus the $10 BLS processing fee when you add it to an existing business. Trade names are registered with the BLS, not with the Secretary of State or your county.

Unemployment insurance: your Washington unemployment insurance employer account

The unemployment insurance (UI) endorsement on your business license opens your state UI tax account. The Employment Security Department (ESD), at esd.wa.gov, sets your UI tax rate and receives your quarterly wage reports. Employers pay the UI tax. Employees pay no UI premium.

Three numbers matter for 2026 and 2027:

Taxable wage base: $78,200 in 2026 and $82,000 in 2027. UI tax applies only to each worker's wages up to that amount in a calendar year.
New employer rate: In 2026, a new employer pays 115 percent of its industry's average rate.
Federal unemployment tax (FUTA): This is separate from state UI. It is 0.6% on the first $7,000 of each employee's wages.

Once your account is open, ask ESD for your assigned rate and your quarterly reporting deadlines. This guide does not list those due dates, so confirm them directly with ESD.

Paid Family and Medical Leave premiums

Paid Family and Medical Leave (PFML) premiums are a percentage of gross wages, and they are reported quarterly to ESD. The premium is 1.13% of gross wages in 2026 and 1.2% in 2027. Confirm with ESD how the premium is split between you and your employees, and how it should be withheld and reported in your payroll system, before you run your first payroll.

WA Cares Fund premiums

WA Cares, the state's long-term care benefit program, is funded by a premium of 0.58% of gross wages. There is no wage cap, so every dollar of wages is subject to it. Employees pay this premium through payroll deduction. The employer pays no WA Cares share unless it chooses to. Like PFML, the premium is reported quarterly to ESD.

Workers' compensation through L&I

The Department of Labor and Industries (L&I), at lni.wa.gov, administers Washington's workers' compensation system. The industrial insurance endorsement on your business license opens your L&I workers' comp account.

Workers' comp works differently from UI and PFML. Premiums are hours-based, which means they are calculated on the hours each employee works rather than on the dollars paid. Workers pay about 25 percent of the premium, and you pay the rest. Confirm the current split and your classification rate with L&I, because those figures change.

Costs and rules at a glance

Item	Agency	Amount or rule	Confirm
Business License Application	DOR, BLS	$50 to open or reopen a business	Endorsement fees
Trade name	DOR, BLS	$5 each, plus $10 processing when added to an existing business	Current BLS fee schedule
LLC Certificate of Formation	Secretary of State	$180	Annual report: $70, late filing totals $95
Corporate Articles of Incorporation	Secretary of State	$180	Annual report: $70, late filing totals $95
Name reservation	Secretary of State	$30 for 180 days	Expedited options
UI taxable wage base	ESD	$78,200 (2026), $82,000 (2027)	Your assigned rate
PFML premium	ESD	1.13% (2026), 1.2% (2027) of gross wages	Employer and employee split
WA Cares premium	ESD	0.58% of gross wages, no wage cap	Any employer election
FUTA	IRS	0.6% on the first $7,000 per employee	Federal filing deadlines
Workers' comp premium	L&I	Hours-based; workers pay about 25 percent	Current split and classification rate

For an LLC or corporation, the annual report is due by the last day of the month in which the entity was originally formed or registered, every year. You may file it up to 180 days early.

Recommended order of operations

Choose your structure. If you form an LLC or corporation, file through CCFS, check your name, and appoint a Washington registered agent before you apply for the business license.
Reserve or confirm names. Reserve your entity name for $30 if you need time, and register any trade name you will use.
Check licenses and local rules. Confirm whether your trade or profession needs a state license and whether your city or county requires its own license.
Submit the Business License Application. File online through the Department of Revenue and request the UI and industrial insurance endorsements if you will have employees.
Set up payroll. Once you have your UBI and accounts, set up withholding for PFML, WA Cares, and the employee share of workers' comp before your first paycheck.
Calendar your filings. Track ESD's quarterly reports, your L&I reporting, and your entity's annual report if you have one.

Local and occupational requirements

A state business license does not cover everything. Washington has 39 counties and 281 incorporated cities and towns. About 54 cities levy their own B&O tax on top of the state tax, and the Department of Revenue does not administer those local taxes. Check your city and county for business licenses and health district permits.

Many trades and professions also need a license from the state agency that oversees them:

L&I: contractor registration, electrical, and plumbing
Department of Licensing (DOL): real estate, cosmetology, notaries, security, and tow operators
Department of Health (DOH): health professions, home care, and lodging
Washington State Department of Agriculture (WSDA): cottage food, processors, and pesticides
Liquor and Cannabis Board (LCB): liquor, cannabis, and tobacco
Department of Children, Youth, and Families (DCYF): child care
Department of Social and Health Services (DSHS): adult family homes
Utilities and Transportation Commission (UTC): movers and charters

Local minimum wage rules and the exempt salary threshold are covered in separate guides.

Questions to confirm with the agencies

PFML: how the premium is split between you and your employees, and how to report it (ESD)
UI: your assigned rate for 2026 and 2027, and your quarterly reporting dates (ESD)
Workers' comp: the employee share and your classification rate (L&I)
Endorsements: the fees for your state, city, and county endorsements (DOR)
Occupational licenses: whether your business needs one, and the requirements for it (the agency that oversees your trade)

Washington's system is easier once you know the sequence: entity, then business license, then the accounts that license unlocks, then payroll. If your structure, payroll, or licensing questions go beyond this checklist, a CPA or attorney familiar with Washington employers can save you time and penalties. The Washington Small Business Development Center also offers free guidance to business owners at no charge.