Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification Number (EIN, aka, FEIN) with the IRS online.
- To read more about how to apply for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
- You will be assigned a unique nine-digit number to identify your business for your federal taxes by the IRS. To learn more, read, “What Is an FEIN?”
State of Washington Tax Accounts:
- As a Washington new employer, you will need to file for a Business License Application online with the Department of Revenue.
- Once you register with the State of Washington, you will receive packs of information from one or more state agencies.
- To learn more, visit the Washington Business Licensing Service. You can contact the Department of Revenue with any questions by phone at (360) 705-6741.
- New employers will be assigned a SUTA tax rate based on their industry by the Washington Employment Security Department.
- New employers will also need to report the employee Standard Occupational Codes (SOC) on their quarterly SUTA reports. (Patriot will have an SOC lookup tool in the software for each employee.)
- To find out more about Washington UI, read, “Unemployment Insurance in Washington”
- To learn more about SUTA, read our article, “What Is SUTA Tax?”
- Washington new employers will receive their Workers’ Compensation Rate from the Department of Labor and Industries (DLI) within two weeks of the business filing by mail.
- This rate is based on the risk classification assigned to you.
- For more information, visit the WA DLI.
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee work verification in the USA.
- This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income tax (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Washington’s minimum wage is $14.49 per hour for 2022.
- By law, you are required to post the Washington minimum wage poster for your employees.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Visit the federal and state government websites for a complete list of new employer requirements.