Washington-specific requirements for workers' compensation payments
Employers in Washington must register with the Department of Labor & Industries (L&I) and pay premiums based on the state's experience rating system. Unlike many states that use a single rate, Washington calculates each employer's premium by multiplying the class code rate by the employer's payroll and then applying an experience modification factor that reflects past claim history.
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Registering and obtaining a payroll account
First, create an online account on the L&I MyLNI portal. After registration, you'll receive a payroll account number that links all wage reports and premium payments. The account must be active before any payroll is processed.
Reporting payroll and calculating premiums
Washington requires quarterly wage reporting. Submit total covered payroll for each quarter using the MyLNI system; the deadline is the 15th of the month following the quarter's end. Premiums are automatically calculated based on the reported wages, the applicable class codes for each job type, and your experience modification factor.
Key class codes
- Construction – 1.00
- Retail – 0.70
- Healthcare – 0.85
These rates are expressed as dollars per $100 of payroll and are updated annually.
Paying the premium
Once the quarterly premium is generated, you can pay via electronic funds transfer, credit card, or check through the MyLNI portal. Washington offers a 5‑day grace period after the reporting deadline; payments made after this window incur a 2% late fee.
Compliance and audit considerations
L&I may audit your payroll records to verify accuracy. Keep detailed records of all wages, job classifications, and any subcontractor payments for at least three years. Failure to report or pay on time can result in penalties, interest, and loss of coverage.
Comparing Washington's system to other states
| Feature | Washington | Typical other state |
|---|---|---|
| Rate calculation | Experience rating per employer | Fixed state rate |
| Reporting frequency | Quarterly | Annual or quarterly |
| Late fee | 2% after 5‑day grace | Varies, often higher |
Resources for employers
Visit the L&I website's "Employers" section for step‑by‑step guides, rate tables, and contact information for the Small Business Assistance Center. The MyLNI portal also hosts tutorials on payroll entry and premium payment.