Archive for December 2025
Seattle’s Proposition 1A / “Excess Compensation” Payroll Tax
In addition to the traditional payroll expense tax, Seattle passed Proposition 1A (2025). Prop 1A, approved by Seattle voters in February 2025, added a new payroll tax on employers that pay annual compensation above $1 million to any individual employee working in Seattle. It’s separate from the existing Seattle Payroll Expense Tax. Tax rate: 5%…
Read MoreSeattle’s Payroll Expense Tax (Local Business Tax)
One of the most important city-specific payroll planning issues in Seattle is the Payroll Expense Tax — sometimes referred to as Seattle’s JumpStart Payroll Tax — which directly affects employers: What It Is Seattle imposes a payroll expense tax on businesses engaging in business in the city that have sufficiently large payrolls and at least…
Read More2025 Payroll Adjustments Must Be Submitted by Jan 6, 2026 (Year-End Adjustment Cutoff)
All 2025 payroll adjustments must be submitted by January 6, 2026. Adjustments submitted after this date may result in the issuance of W-2c forms for affected employees, as well as amended filings with federal and state agencies. Please be aware that any late adjustments will not be processed until after the year-end blackout period, which runs…
Read MorePayroll Compliance Made Simple: Federal, State & Local Tax Filing Explained
Staying compliant with payroll taxes isn’t just a matter of good bookkeeping—it’s a legal requirement that protects your business from costly fines, penalties, and audits. Yet, for many employers, managing federal, state, and local payroll tax filings can feel like a maze of deadlines and ever-changing rules. The good news? Payroll compliance doesn’t have to…
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