Washington Employer Tax Information

To sign up for Square’s online payroll service in Washington, you must be registered with the appropriate tax agencies so we can pay and file your state taxes:

Washington New Employer Registration

Tax Accounts

Before anything else, you will need to file a Business License Application with the Washington Department of Revenue. This single application will also open an unemployment insurance account and a workers’ compensation account for your business. Your application will be processed in about 10 days.

If you have already filed the Business License Application, please continue to the sections below.

Unified Business Identifier (UBI)

• You can find your Unified Business Identifier online.

• If you’re unsure, contact the agency at (800) 451-7985.

Employment Security (ES) Reference Number

• You can find your ES Reference Number online.

• If you’re unsure, contact the agency at (855) 829-9243.

Department of Labor & Industries (L&I) Account ID

• You can find your L&I Account ID online.

• If you’re unsure, contact the agency at (360) 902-4817.

Participant Activation Code (PAC)

• This can be found on the top left of your Employer’s Quarterly Report, on your Rate Notice, or New Account Letter. If your PAC is less than 8 digits, add zeros to the end.

• If you’re unsure, contact the agency at (360) 902-4817.

Tax Rates

Your Employment Security Department Total Tax Rate is the sum of your Unemployment Insurance Tax Rate and Employment Administration Fund Rate, i.e. Employment Security Department Total Tax Rate = UI Tax Rate + EAF Rate.

Unemployment Insurance Tax Rate

• You will be assigned a tax rate based on your industry.

• For more information, contact the agency at (855) 829-9243.

Employment Administration Fund (EAF) Rate

• This is either 0.02% or 0.03%. You can contact the agency at (360) 902-9670 to find out which rate applies to you.

Workers’ Comp Experience Factor

• The Experience Factor for new employers is 1.0. For more information, contact the agency at (360) 902-9670.

Find Your Washington Tax ID Numbers and Rate

Tax Accounts

Unified Business Identifier (UBI)

• You can find your Unified Business Identifier online.

• If you’re unsure, contact the agency at (800) 451-7985.

Employment Security (ES) Reference Number

• You can find your ES Reference Number online or on the Tax Rate Notice mailed by the WA State Employment Security Department.

• If you’re unsure, contact the agency at (855) 829-9243.

Department of Labor & Industries (L&I) Account ID

• You can find your L&I Account ID online.

• If you’re unsure, contact the agency at (360) 902-4817.

Risk Class Code

• View your assigned Risk Class Code by visiting lni.wa.gov and search by entering your Worker’s Compensation Account Number (L&I Account ID).

• If you’re unsure, contact the agency at (360) 902-4817.

Participant Activation Code (PAC)

• This can be found on the top left of your Employer’s Quarterly Report, on your Rate Notice, or New Account Letter. If your PAC is less than 8 digits, add zeros to the end.

• If you’re unsure, contact the agency at (360) 902-4817.

Tax Rates

Your Employment Security Department Total Tax Rate is the sum of your Unemployment Insurance (UI) Tax Rate and Employment Administration Fund (EAF) Rate, i.e. Employment Security Department Total Tax Rate = UI Tax Rate + EAF Rate.

You can locate your UI Tax Rate and EAF Rate on the Tax Rate Notice sent by the Washington State Employment Security Department. If you can’t find it, please contact the agency at (360) 902-9670.

Although Square Payroll will assist in verifying your tax rates each quarter, given that you have provided a valid Employment Security Reference Number, you are responsible for ensuring that these rates are accurately reflected under Tax Info on your Square Dashboard.

Washington State Tax Details

Square Payroll processes the following per the frequency below to the listed state agencies:

Washington Employee Information

Exemption from Washington State Unemployment Insurance Tax and Employment Administration Fund Tax

As of December 2013, officers who provide services in Washington are automatically exempt from unemployment insurance unless the employer specifically requests to cover them. This exception (opting into unemployment insurance) can only be made for corporations. It does not apply to sole proprietors, partners of partnerships, or managers of limited liability companies (LLCs), etc.

If a corporate officer wants to opt in to Washington State Unemployment Insurance, they must fill out the Voluntary Election Form, and the WA Employment Security Department must approve the request. If one corporate officer opts in, then ALL other corporate officers must be opted in as well. This form must be filed with the WA Employment Security Department every two years.

For more information, read these FAQs or contact the WA Employment Security Department at 360-902-9360.

Exemption from Washington State Workers’ Compensation Insurance

Sole Proprietors, Partners, For-Profit Corporate Officers, and Members/Managers of Limited Liability Companies (LLCs) are typically exempt from workers compensation insurance. To voluntarily opt in, they must file the Application for Elective Coverage with the WA Department of Labor & Industries.

Exemption from Federal Unemployment Tax

Certain types of income may not be subject to Federal Unemployment Tax (FUTA). Review Publication 15 and Publication 15-A to determine whether this exemption applies to your business. The IRS Small Business and Self-Employed Website also defines how this exemption applies to S Corporation employees, shareholders and corporate officers.

Exemption from Washington Paid Family and Medical Leave Program

Self employed individuals, federal employees, federally recognized tribes and people who work temporarily in Washington may be exempt from the state’s Paid Family and Medical Leave Program. Read more about Washington’s Paid Family and Leave Medical Leave Program.

Learn how to locate or obtain an EIN.

Adding Square Payroll as an Authorized User for Washington Paid Family Leave

In order to file and pay your Washington Paid Family Leave taxes, Square Payroll needs to be added as an authorized user.

To add or manage users, login to your Paid Family Leave account. From the employer homepage, click Manage Account in the menu bar and select User Maintenance and follow these steps:

1. Click the Add User button.

2. On the Manage Internal User page, enter the following information:

   1. Name: Square Payroll

   2. SAW Username: squarepayroll

   3. Email address: squarepayroll@squareup.com

3. Under Roles, select these roles for Square Payroll to have access:

   1. Employment and wage detail

   2. Payments

4. Under Account Status, select Active and click Save.