How to Register with Washington ESD as a New Employer

1. Two Agencies, Two Registrations

One of the most confusing aspects of becoming a Washington employer is realizing that you need to register with two entirely separate state agencies. Unlike some states that consolidate employer registration, Washington splits responsibilities between:

• Employment Security Department (ESD) — Handles unemployment insurance (UI/SUI) and Paid Family & Medical Leave (PFML). You report wages, hours, and pay premiums for both programs through ESD.
• Department of Labor & Industries (L&I) — Handles workers' compensation insurance. You report hours worked and pay workers' comp premiums through L&I, completely separate from ESD.

Each agency issues its own employer account number. Each has its own online portal. Each requires its own quarterly filings. They do not share information automatically, so you are responsible for maintaining compliance with both.

2. When to Register with ESD

You are required to register with ESD when you begin paying wages to employees in Washington State. Specifically, registration must be completed within the first quarter in which you pay wages. In practice, you should register before you run your first payroll.

Triggering Events

• You hire your first employee in Washington and pay them wages
• You acquire or purchase an existing business that has employees
• You expand an out-of-state business into Washington with WA-based employees

Getting Your UBI Number

Before registering with ESD, you need a Unified Business Identifier (UBI) number from the Washington Secretary of State or the Department of Revenue. If you already have a Washington business license, you already have a UBI. If not, register your business with the state first through the Department of Revenue or Secretary of State.

3. How to Register Online

ESD uses the SecureAccess Washington (SAW) portal for employer account access. Here is the step-by-step process:

Step 1: Create a SAW Account

Visit secureaccess.wa.gov and create a personal user account. This is the state's unified login system. You'll need a valid email address and will set up multi-factor authentication.

Step 2: Access ESD Employer Services

Once logged into SAW, navigate to the ESD employer services portal. Select the option to register as a new employer. You may also access this directly through esd.wa.gov and following the employer registration links.

Step 3: Gather Required Documents

Have the following information ready before starting your registration:

• Federal Employer Identification Number (EIN) — Issued by the IRS
• Unified Business Identifier (UBI) — Your Washington state business number
• Business entity information — Legal name, trade name (DBA), business type (LLC, S-Corp, sole proprietor, etc.)
• Business address and contact information
• Date you first paid or will pay wages in Washington
• NAICS industry code — Describes your type of business
• Number of employees expected

Step 4: Complete the Application

Fill out the online registration form with your business and employment details. Answer questions about your business structure, industry, and previous employment history (if you've had employees before or acquired an existing business). Review all entries for accuracy before submitting.

Step 5: Receive Confirmation

After submission, ESD will process your registration and issue your employer account number. You'll receive a confirmation with your account number, initial SUI tax rate, and instructions for quarterly reporting.

4. What You Get After Registration

Once your ESD registration is approved, you'll receive several important items:

ESD Employer Account Number

This is your unique identifier for all interactions with ESD. You'll use it for quarterly filings, making payments, and any correspondence with the agency. It is different from your federal EIN and your L&I account number.

Initial SUI Rate Assignment

New employers in Washington receive an initial State Unemployment Insurance (SUI) rate based on their industry classification. This rate varies by industry — construction businesses typically receive a higher initial rate than office-based businesses. After you've been an employer long enough to build an experience history, your rate will be adjusted based on your actual claims experience.

PFML Reporting Access

Your ESD account also covers Paid Family & Medical Leave (PFML) reporting. You'll report PFML premiums alongside your SUI filing each quarter. The combined PFML rate for 2026 is 0.92%, split between employer and employee portions (employers with fewer than 50 employees are not required to pay the employer share).

Quarterly Filing Obligations

You are now required to file quarterly reports with ESD, even in quarters where you pay no wages. Reports are due by the last day of the month following each quarter:

• Q1 (Jan–Mar) — Due April 30
• Q2 (Apr–Jun) — Due July 31
• Q3 (Jul–Sep) — Due October 31
• Q4 (Oct–Dec) — Due January 31

5. Registering with L&I

Workers' compensation in Washington is administered by the Department of Labor & Industries (L&I) — a completely separate agency from ESD. You must register with L&I in addition to ESD.

How to Register

Register online at lni.wa.gov. L&I also uses SecureAccess Washington (SAW) for login, so your same SAW account works. Navigate to the employer services section and complete the workers' compensation registration.

Industry Classification & Rates

L&I assigns a risk classification to your business based on the type of work your employees perform. This classification determines your workers' compensation premium rates. Higher-risk industries (construction, manufacturing, logging) pay significantly more than lower-risk industries (office work, retail).

Employer & Employee Portions

Washington workers' compensation premiums have both an employer portion and an employee portion. You are responsible for withholding the employee share from wages and remitting the full amount (both portions) to L&I each quarter. This is different from most states where workers' comp is entirely employer-paid.

6. Quarterly Reporting Requirements

Once registered with both agencies, you'll have two separate quarterly filings to manage:

Filing with ESD

Your ESD quarterly report includes:

• Employee wages — Gross wages paid to each employee during the quarter
• Hours worked — Total hours for each employee
• SUI premiums — Unemployment insurance premiums based on taxable wages
• PFML premiums — Paid Family & Medical Leave premiums (employer and employee shares)
• WA Cares Fund premiums — Long-term care premiums (employee-paid, employer remits)

Filing with L&I

Your L&I quarterly report includes:

• Employee hours worked — Broken down by risk classification
• Workers' compensation premiums — Both employer and employee portions

Same Quarterly Deadlines

Both ESD and L&I follow the same quarterly calendar. Reports and payments are due by the last day of the month following the quarter end. Late filings result in penalties and interest from each agency independently.

7. Employer Account Numbers

As a Washington employer, you'll accumulate several different identification numbers. Keep them organized:

• Federal EIN — Issued by the IRS; used for federal tax filings (Forms 941, 940, W-2)
• UBI Number — Your Unified Business Identifier from Washington State; used for general state business registration
• ESD Employer Account Number — Assigned by ESD; used for quarterly UI/PFML/WA Cares reports
• L&I Account Number — Assigned by L&I; used for quarterly workers' comp reports

Your ESD and L&I account numbers are not the same as your federal EIN. Each is used for different filings with different agencies. When setting up payroll software, you'll typically need to enter all of these numbers.

8. Common Registration Mistakes

New Washington employers frequently make these registration errors:

Mistake #1: Not Registering with L&I Separately

The most common mistake is assuming that registering with ESD covers everything. L&I is a completely separate agency. You must register with them independently for workers' compensation coverage. Operating without workers' comp registration is illegal in Washington and can result in significant penalties.

Mistake #2: Missing PFML Obligations

Some new employers don't realize that Paid Family & Medical Leave is mandatory in Washington. PFML premiums are reported through ESD alongside SUI, but many first-time employers overlook the employee withholding portion or don't understand the employer share rules (applies to businesses with 50+ employees).

Mistake #3: Wrong Industry Classification

Your industry classification affects both your SUI rate at ESD and your workers' comp rate at L&I. Selecting the wrong industry code during registration can result in incorrect premium rates. If your business activities change, you may need to update your classification.

Mistake #4: Waiting Too Long to Register

Some employers don't register until after they've already paid wages for a quarter or more. This results in late filing penalties and interest on premiums that should have been paid. Register before you run your first payroll.

Mistake #5: Confusing Account Numbers

Using your EIN instead of your ESD account number (or vice versa) on filings causes processing delays. Each agency requires its own specific account number.

9. Frequently Asked Questions

Do I need to register with ESD if I only have one employee?

Yes. Washington does not have a minimum employee threshold for ESD registration. If you pay wages to even one employee, you must register with ESD and file quarterly reports.

Can I register with ESD and L&I at the same time?

They are separate registration processes through separate agency portals. However, both use SecureAccess Washington (SAW) for login, so you can complete both registrations in the same session with the same SAW account.

What if I already have a UBI from registering my business?

Your existing UBI works for ESD registration. You do not need a new UBI — ESD will link your employer account to your existing UBI number.

Is there a fee to register with ESD or L&I?

There is no registration fee for either agency. You will, however, owe premiums starting from the quarter in which you first pay wages.

What happens if I'm late registering?

You'll owe premiums retroactively to the date you first paid wages, plus potential penalties and interest for late reporting. Register promptly to avoid these costs.

Do I need workers' comp if my employees work from home?

Yes. Washington requires workers' compensation coverage for virtually all employees, including remote and work-from-home employees. The risk classification may differ (office/clerical vs. field work), but coverage is still mandatory.

Can I use a PEO instead of registering myself?

If you use a Professional Employer Organization (PEO), the PEO may handle registrations and filings on your behalf. However, you should confirm exactly which obligations the PEO is managing. In some arrangements, you may still need your own ESD or L&I accounts.