Processing payroll in Washington State has many components. Before starting to pay employees in the state, you must consider several areas of Washington State Payroll Law, including the minimum wage, overtime, allowed deductions, payroll tax, final and overpayments, and more.
Understanding federal, state, and even local payroll laws in places like Seattle is crucial in avoiding disputes with employees and the government. Keep in mind that if you do not have the resources or bandwidth to understand the legislation or comply with it, a Washington State payroll company might be right for you.
Here is basic payroll knowledge you need to know before processing payroll in Washington State, in regards to Washington Labor Laws.
In areas outside of Seattle, SeaTac, and Tukwila Washington State Minimum Wage is $16.28 per hour, effective as of 01/01/2024. Employees must be compensated in compliance with state minimum wage law for all hours worked in Washington State.
Important to note is that Washington State minimum wage updates yearly, so ensuring you have a way to manage payroll compliance is crucial.
Important to be aware of if you operate a business in Washington State, is that there are special local minimum wage laws, as well as exceptions and special rates.
In general, businesses need to be aware of these additional rules regarding Washington State Minimum Wage:
It is also crucial that employers ensure they are in compliance with Washington State Pay Transparency Law.
Washington Pay Transparency mandates that employers be transparent regarding compensation listed in a job application. The law also outlines certain other requirements for listings, such as benefits.
Under Washington State Overtime Pay Rules, employees who worked in excess of 40 in a week must be compensated at a rate of 1 ½ times the employee’s regular rate of pay for all hours worked over 40.
It is also important that businesses understand the FLSA requirements for overtime, including the federal overtime-exempt salary threshold and any state differences.
While it may seem straightforward, overtime miscalculations are one of the most common payroll errors an organization can make.
When it comes to deductions from an employee's wages, employers may typically withhold pay from an employee in the following instances:
However, with consent, an employer may deduct pay from an employee's wages for the following reasons:
Employers may also make deductions regarding Washington Payroll Taxes.
Lastly, it is important for employers to note they may not deduct pay from an employee's wages for any of the following reasons:
Washington State employers must also be aware of rules regarding a deduction from final wages, as well as corrections for overpayments.
Under Washington State Final Pay, any employees that are terminated must be compensated for their final wages on the next regularly scheduled payday.
There is no law requiring payment of unused benefits, however, employers must adhere to any policies within their employee handbook. For help with payment of unused benefits and other employee handbook policies, contact a Washington Human Resources Provider.
As a reminder, under Washington State At-Will Employment employers may generally fire or terminate employees without reason or notice.
Generally, Washington state employers must pay workers at least once a month, on regularly designated paydays.
Washington State businesses that are choosing a pay frequency should / may:
Leveraging a Washington Payroll Solution can be of great help when it comes to ensuring compliance with pay schedule laws.
While selecting a local provider that knows your business compliance and the needs presented by your area of operation, it's still just as if not more important to pick the right solution.
When selecting the right payroll software for your business, there are certain things you'll want to look for. Most importantly, the ability to tailor the solution to the exact needs of your business. Payroll and HR software should never be one-size-fits-all.
Finding a solution that also protects against things such as payroll fraud and direct deposit scams is crucial, as such employee spoofing attempts become more and more common with increases in modern technology.
While there is certainly much to understand regarding processing payroll in Washington State, there's no better way to make it easy on your business than going to Washington State Payroll company for help.
PayNW's leading Washington State payroll solution can help streamline payroll processing, allowing you to focus on more strategic parts of your business. Our solution also allows you to process paperless payroll, providing electronic pay options and more.
Watch our payroll demo video below to learn more about how our payroll software can help you process payroll in Washington.