Announcement

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%…

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…

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…

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…

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…

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…