Washington Payroll Tax Requirements

There are seven required tax items you need in order to get set up for payroll.

Requirement Format Agency
Unified Business Identifier (UBI) 6XX-XXX-XXX (9 digits) Washington Department of Revenue
Department of Labor &Industries (L&I) Account ID XXX, XXX-XX (8 digits) Washington Department of Labor & Industries (L&I)
Participant Activation Code(PAC) XXXXXXXX (Up to 8 digits, add zeros to end if less than 8 digits)  
Employment Security (ES)Reference Number XXX XXXXXX XX X (12 digits) Washington Employment Security Department
Employment Security Department Total Tax Rate X.XX% Washington Employment Security Department
Employment Administration Fund (EAF) Rate X.XX% Washington Employment Security Department
Workers’ Comp Experience Factor X.X% Washington Employment Security Department

Tax Accounts

To initiate the process, submit a Business License Application to the Washington Department of Revenue, which concurrently establishes your unemployment insurance and workers’ compensation accounts. Processing typically takes about 10 days.

If you've already submitted the Business License Application, proceed to the sections below.

Unified Business Identifier (UBI)

Locate your Unified Business Identifier online.

Employment Security (ES) Reference Number

Find your ES Reference Number online.

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

Retrieve your L&I Account ID online.

Participant Activation Code (PAC)

Locate this on the top left of your Employer’s Quarterly Report, Rate Notice, or New Account Letter. Add zeros to the end if your PAC is less than 8 digits.

Tax Rates

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

Unemployment Insurance Tax Rate

You will receive a tax rate based on your industry.

Employment Administration Fund (EAF) Rate

This is either 0.02% or 0.03%. Confirm the applicable rate by contacting the agency at (360) 902-9670.

Workers’ Comp Experience Factor

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

  • Locate your Unified Business Identifier online.

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

  • Retrieve your L&I Account ID online.

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

  • Locate this on the top left of your Employer’s Quarterly Report, Rate Notice, or New Account Letter. Add zeros to the end if your PAC is less than 8 digits.

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