Leave The hiring to a local expert

Hire in Washington with ease—our experts handle employment and compliance for you.

What is a PEO in Washington

A PEO in Washington serves as a co-employer, handling essential HR functions like payroll, benefits, and compliance while your business maintains control over operations and decision-making. This arrangement allows companies to focus on growth while reducing the administrative burden and legal risks associated with HR.

By partnering with a PEO in Washington , businesses can simplify HR, stay compliant with state regulations, and offer competitive employee benefits, all while focusing on growth. Whether you're a startup or an established company, a PEO helps you navigate Washington ’s complex employment landscape.

Mandatory Requirements when Partnering with a PEO in Washington

In Washington , it’s mandatory for all employers, including those partnering with PEOs, to have valid workers’ compensation insurance. Failure to do so is a criminal offense with potential fines up to $100,000 USD as per Washington Labor Code, section 3700.

Benefits Of Using a PEO In Washington

Payroll Processing and Compliance. A PEO manages payroll processing, tax withholdings, and filings with Washington state agencies, ensuring compliance with state tax laws and employment regulations.

Benefits Administration. PEOs offer access to comprehensive employee benefits packages, including health insurance, retirement plans, and other perks that help attract and retain top talent in Washington .

Workers’ Compensation. PEOs ensure your business complies with Washington ’s workers’ compensation requirements, handling claims and minimizing risk.

HR and Legal Compliance. PEOs bring expert HR support, making them especially valuable for small businesses. With constantly changing Washington labor laws, a PEO offers guidance on employee handbooks, harassment prevention, terminations, and safety regulations, ensuring your business stays compliant.

How to Choose the right PEO in Washington

Selecting the right PEO in Washington is essential for navigating the state's intricate labor laws while ensuring compliance and efficiency. Follow these key steps:

Focus on Washington -Specific Experience. Ensure the PEO has expertise in navigating Washington ’s labor laws. This includes understanding nuances like mandatory sick leave, wage orders, and workers’ compensation requirements.
Service Flexibility. Choose a PEO that offers flexible services tailored to your business size and industry. Washington ’s regulations can vary by sector, so a PEO with industry-specific knowledge is valuable.
Track Record and Compliance History. Research the PEO’s compliance history to ensure they have a proven track record of helping businesses avoid penalties and stay compliant with Washington ’s complex employment laws.
Consider Employee Benefits. A PEO can offer access to more affordable and comprehensive employee benefits, which are crucial for attracting and retaining top talent in Washington ’s competitive job market.
Assess Customer Service. Responsive customer service, dedicated human support teams (not AI), and robust HR technology are key factors in ensuring a smooth partnership with the PEO. It’s important to find a partner who supports your people, when they need it most.

By following these steps, you can select a PEO that aligns with your business goals and ensures compliance with Washington ’s complex labor regulations. For more detailed insights, check out Playroll’s Guide to Employment in Washington .

Looking to hire employees in Washington ?

Check out our comprehensive state hiring guide.

Understand employer tax implications and payroll requirements.
Review state specific employment laws and regulations.
Get insights on payroll, benefits, and employee classification.

Explore Guide

PEO for Small Business compliance in Washington

A PEO (Professional Employer Organization) is an excellent solution for small businesses in Washington to manage HR, payroll, and compliance with the state's complex labor laws.

Washington has some of the most stringent regulations around minimum wage, overtime, paid sick leave, and employee classification, which can be overwhelming for small businesses without dedicated HR resources.

Here’s a brief overview of some key laws and regulations specific to Washington .

Washington Labor Laws

A PEO helps businesses comply with both federal and Washington -specific labor laws, which can be complex and frequently change.

Minimum Wage: $16.28 per hour as of 2024.
Overtime: Required for hours worked over 40 per week, paid at 1.5 times the regular rate.‍
Meal and Rest Breaks: Employers must provide a 30-minute meal break for shifts over 5 hours and a 10-minute rest break for every 4 hours worked.

Payroll and Tax Compliance in Washington

Payroll Frequency: Employers can pay employees weekly, biweekly, semi-monthly, or monthly, but the schedule must be consistent.‍
Paid Family and Medical Leave: Employers contribute 28.57% of the total premium (0.8% of gross wages).

Washington Employee benefits and Risk Management

PEOs provide cost-effective benefits such as group health insurance, retirement plans, and compliance with Washington-specific requirements like the WA Cares Fund.

‍

Additional requirements and enforcement in Washington

Workplace Safety: Employers must follow Washington State Department of Labor & Industries (L&I) safety standards.
Workers’ Compensation: Mandatory coverage for workplace injuries or illnesses.
Enforcement Agencies: Labor laws are enforced by Washington State Department of Labor & Industries