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REMOTE EMPLOYEES

Hiring a remote employee in Washington

Your company is in another state and one employee lives and works from home in Washington. Which state's taxes apply, unemployment, paid leave and Washington's employer rules, each with its official source.

Facts checked on October 5, 2026 against the official sources listed at the end of this page. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Washington at a glance

Income tax
No income tax on wages
Unemployment
$78,200 wage base, 1% to 6% new employer
Paid leave
Washington Paid Family and Medical Leave and WA Cares Fund (long-term care)
New hire report
Within 20 days

Which state's taxes apply

Work state
Washington has no income tax on wages, so nothing is withheld for Washington.Source: WA DOR, Income tax (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Washington for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

No state income tax withholding: neither state taxes these wages.

No New York withholding: the employee does no work in New York.

Unemployment

Washington: the employee works from home there, so the work is localized in Washington.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Washington, so the work is localized in Washington: pay Washington unemployment tax, not your company state's.

Agency
Employment Security Department (ESD)Source: ESD, Employers' guide to paying taxes (opens in a new tab), checked October 5, 2026
Wage base
$78,200 IndexedSource: ESD, How we determine tax rates (opens in a new tab), checked October 5, 2026
New employer rate
1% to 6% 115% of the average rate for all businesses in your industry, at least 1% Surcharges not includedSource: ESD, How we determine tax rates (opens in a new tab), checked October 5, 2026

Open the account: Washington payroll tax registration

Washington Paid Family and Medical Leave (opens in a new tab)

Status
ContributingSource: ESD Paid Leave, Employer Wage Reporting and Premiums Toolkit v25.1, June 2026 (PDF) (opens in a new tab), checked October 5, 2026
Total rate
1.13%Source: ESD Paid Leave, Employer Wage Reporting and Premiums Toolkit v25.1, June 2026 (PDF) (opens in a new tab), checked October 5, 2026
Employee share
Up to 0.8072%Source: ESD Paid Leave, Employer Wage Reporting and Premiums Toolkit v25.1, June 2026 (PDF) (opens in a new tab), checked October 5, 2026
Employer share
0.3228%Source: ESD Paid Leave, Employer Wage Reporting and Premiums Toolkit v25.1, June 2026 (PDF) (opens in a new tab), checked October 5, 2026
Small employers
49 or fewer employees: no employer share Counted as the average headcount over the previous four quarters, each September 30; not FTEsSource: ESD Paid Leave, Small businesses (opens in a new tab), checked October 5, 2026

WA Cares Fund (long-term care) (opens in a new tab)

Status
ContributingSource: WA Cares Fund, Employers (opens in a new tab), checked October 5, 2026
Total rate
0.58%Source: WA Cares Fund, Employers (opens in a new tab), checked October 5, 2026
Employee share
0.58%Source: WA Cares Fund, Employers (opens in a new tab), checked October 5, 2026
Employer share
NoneSource: WA Cares Fund, Employers (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: WA Cares Fund, Employers (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on Washington payroll tax registration.

Washington employer rules

Employment law applies where the employee works, so these follow the employee into Washington.

Final pay
Fired: At the end of the established pay period Quit: At the end of the established pay periodSource: RCW 49.48.010, Payment of wages due to employee ceasing work to be at end of pay period (opens in a new tab), checked October 6, 2026
Pay frequency
At least monthly, on an established regular payday; for pay periods shorter than a month, payday no later than 10 days after the period ends.Source: WAC 296-126-023, Payment interval (opens in a new tab), checked October 6, 2026
Pay notice
No written pay-rate or payday notice at hire. Each payday, an itemized pay statement: pay basis, rate or rates of pay, gross wages and all deductions (WAC 296-126-040). The paid sick leave notice is separate (see sick leave).Source: WAC 296-126-040, Statements furnished (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the start date.Source: DSHS Division of Child Support, New hire reporting (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employers, public contractors or public employers. From October 1, 2026, employers may not impose work authorization verification or reverification requirements greater than federal law requires.Source: Chapter 49.97 RCW, Immigrant workers (Immigrant Worker Protection Act, 2026 c 240) (opens in a new tab), checked October 5, 2026
Sick leave
Paid sick leave required, from the first employee.Source: L&I, Paid sick leave (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Washington, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Washington

WORKLIO HCM

Payroll for employees who work from home in another state

We help open state accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Worklio HCM calculates, deposits and files your payroll taxes in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it. State paid leave contributions are withheld, too.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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