Payroll Taxes

Washington’s workers’ compensation system is costly compared to other states. In 2009:

• Highest benefits per covered worker ($857.32)
• 3^rd highest benefits as a percent of covered wages (1.82 percent)

 

Other General Information:

Oregon publishes a study every two years that compares states’ workers’ compensation premium rates. There are a number of problems with using this study as a way to rank Washington’s system (see “The Time Has Come to Fix Workers’ Compensation). That said, the latest edition of the study shows Washington’s ranking deteriorating from 38^th in the nation in 2008 to 26^th in 2010 (meaning that premiums here are now higher than 25 other states and DC).

Unemployment Insurance

Washington has long had high unemployment insurance costs as well. In 2010:

• UI taxes were 3^rd highest in the nation (up from 5^th in 2009) -- $809 on average per full-time employee
• The average weekly benefit amount was 5^th highest (down from 2^nd highest in 2009) -- $359.19
• The duration of benefits was 21^st highest (down from 16^th in 2009) -- 18.7 weeks

Washington had the highest taxable wage base in the country in 2010 ($36,800) and 2011 ($37,300), but in 2012, its base of $38,200 was overtaken by Hawaii.

Thrive: Employment Cost Drivers in Washington State