As a small business owner in Washington, you need to stay on top of payroll taxes to keep your business compliant and running smoothly. One of the key updates for 2026 is the WA Cares Fund, which is designed to provide long-term care benefits to residents. Understanding the WA Cares Fund rates 2026 is essential for budgeting and payroll calculations. In this article, we'll break down the WA Cares Fund rates, along with other relevant payroll taxes for the year, so you can effectively manage your payroll responsibilities.
What is the WA Cares Fund?
The WA Cares Fund is a state-run program that provides long-term care benefits to eligible residents of Washington. As of 2026, the program requires small businesses and solo-entrepreneurs to contribute a portion of their employees' wages to fund these benefits. The WA Cares Fund rates for 2026 are set at 0.58% of an employee's gross wages. This means that for every dollar your employees earn, you'll need to withhold this percentage for the WA Cares Fund. It's crucial to incorporate this into your payroll calculations to ensure compliance with state regulations.
Other Payroll Taxes in Washington for 2026
In addition to the WA Cares Fund rates 2026, there are other payroll taxes you need to consider. Here's a brief overview: 1. Social Security — The rate is 6.2% on wages up to $176,100. This tax helps fund the Social Security program, which provides retirement and disability benefits. 2. Medicare — This tax is set at 1.45% on all wages with no cap. Medicare provides health insurance for individuals aged 65 and older, as well as certain younger individuals with disabilities. 3. Washington Paid Family and Medical Leave (PFML) — The rate for PFML is 0.74%, which covers paid leave for employees needing time off for family or medical reasons. 4. Washington Labor & Industries (L&I) — The L&I rate varies by industry and covers workers' compensation insurance. Make sure to check the specific rate applicable to your business.
Calculating WA Cares Fund and Other Payroll Taxes
To ensure accurate payroll processing, you'll want to calculate the WA Cares Fund along with other payroll taxes. Here's how you can do it: 1. Determine employee wages — Start by identifying your employees' gross wages for the pay period. 2. Calculate the WA Cares Fund — Multiply the employee's gross wages by 0.58% to find the amount to withhold for the WA Cares Fund. 3. Calculate Social Security — For wages up to $176,100, multiply by 6.2%. 4. Calculate Medicare — Multiply the total wages by 1.45%. 5. Calculate WA PFML — Multiply the total wages by 0.74%. 6. Add L&I — Apply the specific rate for your industry. By following these steps, you can ensure that you're withholding the correct amounts for each tax.
To simplify your payroll calculations, use our free payroll tax calculator at micro-payroll.com. It's designed to help you accurately compute the WA Cares Fund rates 2026 and other payroll taxes.
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