Washington compliance with state regulatory updates

Research steps and summary:I ran targeted searches and site extracts (official WA agency pages, legislative summaries, and reputable local news) to collect state-specific regulatory updates affecting Washington business owners and LLC founders through Jan 3, 2026.

Steps taken:- Performed broad web searches for 2024–2026 Washington business/regulatory changes (tax, employment, filings, licenses, safety).- Extracted and compressed content from official sources: Paid Family & Medical Leave (paidleave.wa.gov), Department of Revenue 2025 tax legislation summary (dor.wa.gov), Business Licensing Service guidance (business.wa.gov), Department of Labor & Industries (lni.wa.gov), and Secretary of State annual report pages (sos.wa.gov).- Reviewed the Legislature’s 2025 final summary of legislation and several reputable local news summaries for effective dates and practical implications.Key findings (grouped by compliance area) and practical next steps for Washington business owners / LLC founders:1) Formation & filings (Secretary of State)- Requirement: All domestic and foreign business entities must file an Annual Report yearly to maintain active status.

The annual report is due by the last day of the month in which the business was formed or registered; you may file up to 180 days before that expiration date. Filing is available online and includes standard processing fees. (See SOS links below.)- Practical steps: Confirm your entity’s expiration month in the SOS record, set an internal reminder 90–120 days before the due month, file the annual report online via the SOS filing portal, and keep UBI and contact info current with the Business Licensing Service so state agencies receive notices.2) Taxes (Department of Revenue & legislative changes)- 2025 legislative package (ESHB 2081 and related bills) changed B&O tax rates, created/modifies surcharges and deductions, and created a temporary 0.5% B&O surcharge on taxpayers with Washington taxable income over $250 million.

Some changes take effect Jan 1, 2026; effective dates vary by provision—check DOR special notices for specifics and guidance. The legislation also included luxury vehicle taxes and other items. - Practical steps: Review DOR special notices and the 2025 tax legislation page for your tax classification, run the DOR service/B&O rate notices, consult a tax advisor if you may be affected by new rates or the large-subscriber surcharge, and update accounting and pricing models where applicable.3) Employment & benefits (PFML, minimum wage)- Paid Family & Medical Leave (PFML): ESD updated the premium rate for Jan 1, 2026 to 1.13% of wages; employer share = 28.57%, employee share = 71.43%.

Employers must begin collecting the new rate on wages paid on/after Jan 1, 2026 and report/submit quarterly (first quarter reporting with new rate due end of April 2026). Legislative changes (effective Jan 1, 2026) expand job-protection eligibility (employer-size threshold lowered to 25 employees in 2026 and claim minimum reduced from 8 to 4 hours).

Employer toolkit, posters, and paystub inserts are updated on paidleave.wa.gov. Employers should also watch IRS guidance on federal tax treatment of employer-paid premium shares. - Minimum wage: Washington’s minimum wage increases for 2026 (news coverage cites $17.13/hr effective Jan 1, 2026).

Confirm local jurisdiction rates (Seattle, King County, etc.) separately.- Practical steps: Update payroll systems and paystubs to collect and remit the new PFML premium rate; notify employees of rate change; update required posters; review eligibility and job-protection policies and employee handbooks; consult payroll provider/tax advisor for PFML and any IRS implications.4) Labor & workplace safety (L&I and legislation)- HB 1524 (2025) expands and clarifies workplace safety rules for isolated employees, adds enforcement authority for L&I to investigate and assess penalties for willful or repeated violations, and updates definitions/requirements; HB 1162 strengthens workplace-violence prevention updates for healthcare settings (annual plan updates and reporting).

These changes take effect Jan 1, 2026.- Practical steps: Review L&I guidance for isolated-employee protections (panic buttons, training, recordkeeping), update workplace safety policies and training, document measures taken, and implement required equipment and recordkeeping to avoid enforcement penalties.5) Licenses & permits (Business Licensing Service & local ordinances)- Business Licensing Service / business.wa.gov: Maintain active state business license and renew city endorsements; corporate entities must file Annual Report with SOS.

The city business license model ordinance changed in 2025: the business license threshold for out-of-city businesses increases from $2,000 to $4,000 (effective Jan 1, 2026) — cities must adopt ordinances by Oct 2025 to implement.- Practical steps: Check your city’s local license requirements and thresholds (FileLocal or city website), renew state and city endorsements as required, and ensure BA/UBI status is active.6) Other notable items (taxes, fees, enforcement)- Luxury vehicle tax and other consumer/retail changes (ESSB 5801) and a range of other bills affecting industry-specific rules (see legislative summary).

Some tax changes and surtaxes are phased or have later effective dates; review DOR and legislative summaries for exact timing and applicability.- Practical steps: Review industry-specific bills in the 2025 legislative summary; consult counsel/accountant for implications to pricing or compliance.Recommended consolidated checklist (immediate actions for Jan 2026):- Update payroll to reflect PFML premium 1.13% and Jan 1 collection; notify employees and post updated notices.- Confirm minimum wage obligations (state and local), update payroll and notices.- Check SOS record and file Annual Report on or before the required month; set reminders for future filings.- Review DOR notices for B&O rate changes and surtax applicability; if you file B&O, ask your CPA about potential impact and planning steps.- Review L&I guidance for isolated employees and healthcare workplace violence updates; implement equipment/training and document compliance.- Check city business license thresholds and renew local endorsements if needed.- Keep copies of updated posters, policies, and proof of employee notices; maintain documentation in case of audits or enforcement.

Research steps and summary:I ran targeted searches and site extracts (official WA agency pages, legislative summaries, and reputable local news) to collect state-specific regulatory updates affecting Washington business owners and LLC founders through Jan 3, 2026.

Steps taken:- Performed broad web searches for 2024–2026 Washington business/regulatory changes (tax, employment, filings, licenses, safety).- Extracted and compressed content from official sources: Paid Family & Medical Leave (paidleave.wa.gov), Department of Revenue 2025 tax legislation summary (dor.wa.gov), Business Licensing Service guidance (business.wa.gov), Department of Labor & Industries (lni.wa.gov), and Secretary of State annual report pages (sos.wa.gov).- Reviewed the Legislature’s 2025 final summary of legislation and several reputable local news summaries for effective dates and practical implications.Key findings (grouped by compliance area) and practical next steps for Washington business owners / LLC founders:1) Formation & filings (Secretary of State)- Requirement: All domestic and foreign business entities must file an Annual Report yearly to maintain active status.

The annual report is due by the last day of the month in which the business was formed or registered; you may file up to 180 days before that expiration date. Filing is available online and includes standard processing fees. (See SOS links below.)- Practical steps: Confirm your entity’s expiration month in the SOS record, set an internal reminder 90–120 days before the due month, file the annual report online via the SOS filing portal, and keep UBI and contact info current with the Business Licensing Service so state agencies receive notices.2) Taxes (Department of Revenue & legislative changes)- 2025 legislative package (ESHB 2081 and related bills) changed B&O tax rates, created/modifies surcharges and deductions, and created a temporary 0.5% B&O surcharge on taxpayers with Washington taxable income over $250 million.

Some changes take effect Jan 1, 2026; effective dates vary by provision—check DOR special notices for specifics and guidance. The legislation also included luxury vehicle taxes and other items. - Practical steps: Review DOR special notices and the 2025 tax legislation page for your tax classification, run the DOR service/B&O rate notices, consult a tax advisor if you may be affected by new rates or the large-subscriber surcharge, and update accounting and pricing models where applicable.3) Employment & benefits (PFML, minimum wage)- Paid Family & Medical Leave (PFML): ESD updated the premium rate for Jan 1, 2026 to 1.13% of wages; employer share = 28.57%, employee share = 71.43%.

Employers must begin collecting the new rate on wages paid on/after Jan 1, 2026 and report/submit quarterly (first quarter reporting with new rate due end of April 2026). Legislative changes (effective Jan 1, 2026) expand job-protection eligibility (employer-size threshold lowered to 25 employees in 2026 and claim minimum reduced from 8 to 4 hours).

Employer toolkit, posters, and paystub inserts are updated on paidleave.wa.gov. Employers should also watch IRS guidance on federal tax treatment of employer-paid premium shares. - Minimum wage: Washington’s minimum wage increases for 2026 (news coverage cites $17.13/hr effective Jan 1, 2026).

Confirm local jurisdiction rates (Seattle, King County, etc.) separately.- Practical steps: Update payroll systems and paystubs to collect and remit the new PFML premium rate; notify employees of rate change; update required posters; review eligibility and job-protection policies and employee handbooks; consult payroll provider/tax advisor for PFML and any IRS implications.4) Labor & workplace safety (L&I and legislation)- HB 1524 (2025) expands and clarifies workplace safety rules for isolated employees, adds enforcement authority for L&I to investigate and assess penalties for willful or repeated violations, and updates definitions/requirements; HB 1162 strengthens workplace-violence prevention updates for healthcare settings (annual plan updates and reporting).

These changes take effect Jan 1, 2026.- Practical steps: Review L&I guidance for isolated-employee protections (panic buttons, training, recordkeeping), update workplace safety policies and training, document measures taken, and implement required equipment and recordkeeping to avoid enforcement penalties.5) Licenses & permits (Business Licensing Service & local ordinances)- Business Licensing Service / business.wa.gov: Maintain active state business license and renew city endorsements; corporate entities must file Annual Report with SOS.

The city business license model ordinance changed in 2025: the business license threshold for out-of-city businesses increases from $2,000 to $4,000 (effective Jan 1, 2026) — cities must adopt ordinances by Oct 2025 to implement.- Practical steps: Check your city’s local license requirements and thresholds (FileLocal or city website), renew state and city endorsements as required, and ensure BA/UBI status is active.6) Other notable items (taxes, fees, enforcement)- Luxury vehicle tax and other consumer/retail changes (ESSB 5801) and a range of other bills affecting industry-specific rules (see legislative summary).

Some tax changes and surtaxes are phased or have later effective dates; review DOR and legislative summaries for exact timing and applicability.- Practical steps: Review industry-specific bills in the 2025 legislative summary; consult counsel/accountant for implications to pricing or compliance.Recommended consolidated checklist (immediate actions for Jan 2026):- Update payroll to reflect PFML premium 1.13% and Jan 1 collection; notify employees and post updated notices.- Confirm minimum wage obligations (state and local), update payroll and notices.- Check SOS record and file Annual Report on or before the required month; set reminders for future filings.- Review DOR notices for B&O rate changes and surtax applicability; if you file B&O, ask your CPA about potential impact and planning steps.- Review L&I guidance for isolated employees and healthcare workplace violence updates; implement equipment/training and document compliance.- Check city business license thresholds and renew local endorsements if needed.- Keep copies of updated posters, policies, and proof of employee notices; maintain documentation in case of audits or enforcement.