Posts by Sound Payroll
New Client Payroll Special – Summer 2026
SPECIAL OFFER FOR NEW CLIENTS — $0 Setup Fee! Start your payroll with Sound Payroll and get reliable local support without the setup fee. Offer valid for new payroll clients. Offer expires September 30, 2026. Free Consultation Custom Proposal Payroll Team Onboarding PAYROLL SUPPORT BUILT FOR SMALL BUSINESSES Guaranteed on-time paychecks Free direct deposit Worry-free…
Read MoreWhere Real Estate Companies Most Often Mess Payroll Up
Now that tax season has wrapped, most real estate firms shift from reporting to planning (especially brokerages like Windermere Real Estate, RE/MAX, Keller Williams Realty, Coldwell Banker Realty, John L. Scott Real Estate). Payroll is one of the biggest areas where mistakes quietly compound, especially in Washington and Seattle. Many Brokerages Treat Agents As Independent…
Read MoreOvertime + Tips: A Washington-Specific Pressure Point
In Washington, tips generally do not count toward the regular rate of pay for overtime, but wages absolutely do. That means payroll systems must cleanly separate: Straight wages Overtime wages Tip income Service charges (which are not tips) When employees work multiple roles — especially common in Bellevue venues with bar, dining, and event service…
Read MoreService Charges vs. Tips: A Frequent Seattle/Bellevue Issue
Service charges are not tips under Washington law. They are considered employer revenue unless explicitly designated otherwise, and they: Must be reported differently May count toward regular wages Can affect overtime calculations Payroll systems that lump service charges and tips together create serious compliance exposure. Employees often assume service charges are tips, and if payroll…
Read MoreSeattle’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 Expense Tax (often called “JumpStart Seattle”)
The city of Seattle imposes a payroll expense tax on employers engaging in business within city limits who meet specific thresholds. This tax primarily affects medium-to-large companies with high-compensated employees—such as tech firms, architecture and design studios, engineering consultancies, law firms, financial services providers, and healthcare systems. These types of employers frequently rely on payroll…
Read MoreBusiness Size Has a Major Impact on Payroll Complexity and Regulatory Requirements
Business size has a major impact on payroll complexity and regulatory requirements, and the effects vary depending on the industry. When onboarding payroll clients, understanding how large the business is—and what sector it operates in—helps anticipate compliance thresholds, reporting needs, and system configurations. Below is an overview of how business size influences payroll in several…
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…
Read MoreWho Pet Liabilities Not Being Captured in Your HCM Primarily Affects
PET liabilities not being captured in your HCM primarily affects several key stakeholder groups within an organization. Below is a breakdown of who should be most concerned and why, with specific context for Seattle and Bellevue employers: 1. CFOs, Controllers, and Finance Directors These roles carry ultimate responsibility for financial accuracy, budgeting, and forecasting.If Payroll…
Read MoreBusiness Type Determines Tax and Compliance Requirements
Understanding how a client’s entity structure affects payroll is essential because it dictates how owners and employees are paid, which taxes apply, and what benefits can be offered. For sole proprietorships, the owner does not take a paycheck through payroll but instead takes owner’s draws. These draws are not subject to payroll withholding, but the…
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