DEPARTMENT OF LABOR AND INDUSTRIES
This tax is assessed on hours worked, not wages paid. There are two components that make up the total: 1) The Accident Fund premium which is paid by the employer, and 2) Supplemental Pension and Medical Aid of which a portion may be withheld from employees’ wages. If the employer elects to withhold from employees, all employees must be included. The allowable rate for withholding is provided on the annual rate notification. Owners, partners, and corporate officers are not covered unless they elect to be. All other employees are required to be covered. Full-time salaried employees are required to report only 480 hours per quarter, unless they are in more than one rate classification, then actual hours must be tracked. Be aware that some rate classifications cannot allocate hours between other rate classifications and all hours must be reported at the higher rate.
EMPLOYMENT SECURITY DEPARTMENT
For 2021*, this tax will be between .10 and 5.7% unless delinquent, plus .3% for employment administration fund of the first $56,500 for each employee, based on an experience rate. The employer pays this entire amount. Corporate officers are not covered unless they elect to be.
*2022 tax rates not yet released
PAID FAMILY & MEDICAL LEAVE
Beginning January 1, 2022, the premium rate will be 0.6%. Employers will pay approximately 27% of the total premium and employees will pay about 73%. The premium collected for each type of leave is 51.31% for family leave and 48.69% for medical leave.
FICA (SOCIAL SECURITY DEPARTMENT)
6.2% of the first $147,000 for each employee is taken out of his gross pay for Social Security for 2022, (or $9,114). The employer’s share is 6.2%. 1.45% of all wages is taken out for Medicare. The employer’s share of this is also 1.45%. An employee that makes over $200,000 wage, the employee’s portion of Medicare goes up to 2.35%, on the amount above $200.000.
FUTA (FEDERAL UNEMPLOYMENT)
This tax is 0.9% of the first $7,000 for each employee, (or $63). This tax is paid by the employer and is subject to deposit. If the amount due at the end of the quarter (including undeposited amounts for any prior quarters) exceeds $500, deposit it by the last day of the month following the end of the quarter. NOTE: The tax rate may be higher on corporate officers whose wages are exempt from the state unemployment taxes, usually 6.0% of the first $7,000 of wages.
Effective January 1, 2022, the minimum wage for adult employees in Washington State is $14.49 per hour, and for employees under age 16, no less than 85% of the adult minimum wage, or $12.32 per hour. The federal adult minimum wage is $7.25 per hour ($15.00 for federal contracts) effective January 1, 2022.
SOCIAL SECURITY BENEFITS – COLA for 2022=5.9%
AGE EARNINGS LIMIT
Full retirement age Unlimited
Normal retirement age; 2021 and 2022 $50,520/yr in 2021 and $51,960/yr in 2022
66 at year end $4,210/mo in 2021 and $4,330/mo in 2022
Under normal retirement age $18,960/yr in 2021 and $19,560/yr in 2022
Once the ceiling on earnings is reached, benefits are reduced by $1 for every $3 in excess for workers age 65 at year end, and $1 for every $2 in excess for workers age 62 to 64.
CURRENT QUARTERLY REPORTS
Employment Security Department
PO Box 34729
Seattle, WA 98124-1729
Department of Labor & Industries
PO Box 34390
Seattle, WA 98124-1390
VANCOUVER ADDRESSES FOR PAST DUE OR AMENDED RETURNS
Employment Security Department
5411 E Mill Plain Boulevard, #14
Vancouver, WA 98661
Department of Labor and Industries
312 SE Stonemill Drive, Suite 120
Vancouver, WA 98684