How do I hire my first employee?

How to Hire Your First Employee in Washington

Hiring your first employee in Washington involves several operational steps to ensure compliance and smooth onboarding. Follow this practical guide to get started efficiently.

Step 1: Register Your Business for Employer Purposes

• Register with the Washington Department of Revenue: Obtain a Unified Business Identifier (UBI) number if you haven't already. This is required for tax reporting and payroll purposes.
• Register for Employment Security Tax: Set up an account with the Washington Employment Security Department for unemployment insurance tax withholding.
• Register with the Washington Department of Labor & Industries (L&I): This covers workers’ compensation insurance and workplace safety compliance.

Step 2: Understand Employee Classification and Payroll Setup

• Classify your worker correctly: Determine if the worker is an employee or an independent contractor to comply with tax and labor laws.
• Set up payroll systems: Choose payroll software or services that handle Washington state taxes, federal taxes, and withholdings.
• Collect Form W-4 and I-9: Have your employee complete these forms for federal tax withholding and employment eligibility verification.

Step 3: Comply with Washington Employment Laws

• Minimum wage: As of 2026, Washington’s minimum wage varies by location; ensure you pay at least the applicable rate.
• Paid sick leave: Provide paid sick leave as required under Washington state law.
• Workplace posters: Display all required labor law posters in a visible area at your business location.

Step 4: Set Up Recordkeeping and Reporting

• Maintain employee records: Keep payroll, tax, and employment records for at least three years as required by Washington state and federal regulations.
• File quarterly tax reports: Submit employment security and workers’ compensation tax reports on time.
• Prepare for new hire reporting: Report new hires to the Washington New Hire Reporting Program within 20 days of hire.

Step 5: Consider Insurance and Benefits

• Workers’ compensation insurance: Required by L&I to cover workplace injuries.
• Optional benefits: Evaluate offering health insurance, retirement plans, or other benefits to attract and retain employees.