Washington (WA) – 2021


Minimum WageWashingtonFederal
Minimum Wage$13.69$7.25
Minimum Cash Wage (Tipped Employee)$13.69$2.13
Maximum Tip CreditNone$5.12
Youth Minimum Wage (Employees who are 14 or 15 years old may be paid 85% of the adult minimum wage)$11.64
State Income TaxWashingtonFederal
Wage WithholdingNone
Supplemental Wage / Bonus RateNone
Unemployment InsuranceWashingtonFederal
Maximum 2021 Taxable Earnings (Increased from $52,700 in 2020)$56,500
Employee 2021 DeductionNone
Employer 2021 Tax Rates (Includes employment administrative fund and social cost surtaxes)0.13 – 7.73%
Standard 2021 New Employer RateIndustry Average
Voluntary Contribution PermittedYes
Workers’ CompensationEmployers and employees each pay half of the Stay At Work rate, the Medical Aid Fund rate and the Supplemental Pension Fund (SPF) rate. For 2021, the SPF rate is $0.1372 per hour ($0.0686 per hour, employee rate & $0.0686 per hour, employer rate).

Federal (FED) – 2021

Minimum WageFederal
Minimum Wage$7.25
Minimum Cash Wage (Tipped Employee)$2.13
Maximum Tip Credit$5.12
Youth Minimum Wage$4.25
Maximum Taxable EarningsNo Limit
Medicare Rate1.45%
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)0.90%
Maximum Taxable Earnings (Increased from $137,700 in 2020)$142,800
Employee / Employer Tax Rate (Unchanged from 2019)6.20%
Maximum Taxable Earnings$7,000
Percent of Taxable Wages6.00%
Maximum Credit5.40%
Normal Net Tax0.60%
Health Savings AccountsFederal
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020)$3,600
Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020)$7,200
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020)$1,000
Pension PlansFederal
Contribution Limit – 401(k) & 403(b) plans (Unchanged from 2020)$19,500
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019)$6,500
Supplemental Wage / Bonus RatesFederal
Flat Rate Withholding Method (Unchanged from 2020)22%
Pay over $1 Million (Unchanged from 2020)37%

Washington State Resources

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