Hiring Your First Employee in Washington

Your business setup changes when you hire employees. You don't have to complete these steps until you're preparing to hire, but knowing what's coming can help you plan ahead.

Your First-Employee Checklist

1

Make Sure Your Business Is Registered

You must have a registered business before hiring employees in Washington. If you have already formed your LLC with the Secretary of State, this one is done. If not, finish your formation first — employer setup comes after the business itself exists.

2

Update Your Washington Business License

If you're already licensed and hiring employees for the first time, update your Business License Application. Washington says this should generally be done no sooner than 90 days before you plan to hire.

Official Government Resource
Washington — Hiring Employees

Source: Washington Department of Revenue · Last checked: September 15, 2026

3

Set Up Workers' Compensation

Washington employers generally obtain workers' compensation coverage through Washington Labor and Industries (L&I). Updating your business license for hiring employees starts this registration process.

Official Government Resource
Learn About Workers' Compensation

Source: Washington Department of Labor & Industries · Last checked: September 15, 2026

4

Set Up Unemployment Insurance

Employers with Washington employees generally need an Employment Security Department employer account and must file required quarterly wage and tax reports.

Official Government Resource
Washington Employer Requirements

Source: Washington Employment Security Department · Last checked: September 15, 2026

5

Set Up Payroll

Before paying employees, establish a payroll process for wages, required deductions, employer taxes, pay statements and payroll records.

Payroll software or a payroll provider can help, but business owners remain responsible for meeting applicable employer requirements.

6

Complete Federal Hiring Requirements

Employers generally need to complete federal employment paperwork for each person they hire, including Form I-9 (employment eligibility verification) and Form W-4 (federal income tax withholding) requirements. Use the official government links below rather than third-party filing services.

Official Government Resource
Form I-9 — USCIS

Source: U.S. Citizenship and Immigration Services · Last checked: September 15, 2026

Official Government Resource
Form W-4 — IRS

Source: Internal Revenue Service · Last checked: September 15, 2026

7

Report Your New Hire

Washington requires employers to report newly hired and qualifying rehired employees within 20 days.

Official Government Resource
Report a New Hire — Washington

Source: Washington Employment Security Department · Last checked: September 15, 2026

8

Understand Washington Workplace Requirements

Depending on the business and the worker, employers may have additional workplace requirements — paid sick leave, Paid Family & Medical Leave, WA Cares, workplace safety, required posters, minimum wage, overtime, and employee records. Review these with the official Washington agencies as you prepare to hire.

9

Keep Payroll and Employee Records

Washington requires employers to maintain certain payroll and employment records. Keeping organized records from your very first payroll makes quarterly reports — and any later review — much easier.

First Employee Checklist

  • Business registered
  • Business license updated for employees
  • Workers' compensation account established
  • Unemployment insurance account established
  • Payroll system established
  • Federal hiring forms completed
  • New hire reported to Washington
  • Required workplace posters displayed
  • Employee/payroll records established

MyBusinessSteps.com provides general educational information and is not a government agency, law firm, accounting firm, payroll provider, or tax advisor. Employer requirements can change. Verify current requirements with the appropriate Washington and federal agencies.

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Important Information

This website provides general educational information and tools for business owners. It is not a law firm, accounting firm, tax adviser, financial adviser, or government agency.

Information can change, and requirements vary based on business activities and individual circumstances.

Verify filing requirements, fees, deadlines, licenses, permits, and tax obligations with the appropriate government agency or a qualified professional before acting.