Last reviewed: July 2026

Quick Answer

New Washington employers need a federal EIN, a Washington business license from the Department of Revenue, an unemployment insurance account with the Employment Security Department (ESD), and a workers' compensation account with the Department of Labor & Industries (L&I). PFML and WA Cares Fund reporting ride along with your ESD account. New hires must be reported within 20 days.

Washington splits new employer registration across two state agencies, plus a federal step before either of them. None of the steps below are optional, and skipping one just means you register late and owe back premiums when the state catches up. Here's the order that avoids that.

1. Federal EIN

Apply for a free EIN at irs.gov. The online application takes about 15 minutes and you receive the number immediately. Every registration that follows asks for it, so this step comes first no matter what kind of business you're forming.

2. Washington Business License (DOR)

Register with the Washington Department of Revenue for a state business license. If you don't already have a Unified Business Identifier (UBI) number, this application creates one for you. Apply online through the My DOR system and plan for roughly ten business days of processing, longer if your business needs city or county endorsements.

Already have a UBI? If you registered your business with the state before hiring anyone, you already have a UBI. You don't need a second one. ESD will link your new employer account to the UBI you already hold.

3. ESD Unemployment Insurance

Register with the Washington Employment Security Department (ESD) before you run your first payroll. ESD issues an employer account number, assigns your new employer SUI rate, and gives you access to file quarterly wage reports. Registration is completed online through the SecureAccess Washington (SAW) portal, and you'll need your EIN, UBI, business structure, and estimated hiring date on hand.

4. L&I Workers' Compensation

Workers' compensation in Washington runs through the Department of Labor & Industries (L&I), a completely separate agency from ESD with its own account number and its own quarterly report. L&I assigns your business a risk classification based on the type of work performed, which sets your premium rate. Registration also happens through SAW, so the same login works for both agencies even though the accounts are independent.

Two agencies, two accounts Registering with ESD does not register you with L&I, and the reverse is also true. Washington requires both, and each one runs its own quarterly filing on its own account number.

5. PFML and WA Cares Enrollment

Paid Family & Medical Leave and the WA Cares Fund don't require a separate account. Both are reported through your existing ESD account alongside your quarterly SUI wage report, so once you're registered with ESD, you're set up to report all three. What you still need to handle correctly is withholding: the employee share of PFML from every paycheck, the employer share if you have 50 or more employees, and the WA Cares premium from every employee's wages with no cap. Our PFML guide and WA Cares Fund guide cover the current rates and withholding mechanics in full.

6. New Hire Reporting

Report every new hire and rehire to the Washington Division of Child Support within 20 days of the hire date. Most employers report online through Secure Access Washington, though mail, fax, and phone options exist. This requirement exists independently of your ESD and L&I registrations and applies even if you only hire one employee. Our federal new hire reporting guide covers what information the report needs to include.

Missing the deadline has a cost Late new hire reports can draw a civil penalty, and the penalty is higher if the state determines the failure to report was intentional. It's a quick filing, so there's little reason to let it slip past 20 days.

7. Frequently Asked Questions

What is the first thing a new Washington employer should register for?

Start with a federal EIN from the IRS. You need it before you can apply for a Washington business license or open an account with ESD, so it comes first regardless of what kind of business you run.

Do I need to register with both ESD and L&I?

Yes. ESD handles unemployment insurance, PFML, and WA Cares Fund reporting. L&I handles workers' compensation. They are separate agencies with separate account numbers, and registering with one does not register you with the other.

When do I need to report a new hire in Washington?

Within 20 days of the hire or rehire date. Reports go to the Washington Division of Child Support, and most employers submit them online through Secure Access Washington.

Is there a separate enrollment step for PFML or WA Cares?

No separate account is required. Both programs are reported through your existing ESD account alongside your quarterly SUI wage report, so registering with ESD covers all three.

Useful tools Run numbers with our paycheck calculator, and check federal withholding setup with the W-4 helper.

Get Registered and Stay Compliant, Without the Local Office

Because Washington has no state income tax, new employer setup here is mostly federal filings plus registering with ESD and L&I, then keeping up with SUI, PFML, and WA Cares reporting every quarter. It's fewer moving parts than an income-tax state, but the registrations still have to happen in the right order and on time.

Pacific Data Services has run payroll for small businesses since 1969, and handles the full setup for Washington employers remotely: EIN, DOR, ESD, L&I, PFML and WA Cares withholding, and new hire reporting, all included.

See how Pacific Data Services handles Washington payroll →

Disclaimer

This article provides general information about Washington employer registration requirements and is current as of July 2026. It is not legal, tax, or accounting advice. Registration requirements, rates, and procedures may change.

Consult a qualified payroll professional, CPA, or attorney for advice specific to your business. Always verify current requirements directly with ESD and L&I.

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Eric Bennet
Owner, Pacific Data Services

Eric has worked with Pacific Data Services since 1984, a full-service payroll and bookkeeping company serving small businesses across the U.S.