Overview
When you run payroll in Washington State, you're required to register for state-level payroll accounts like workers’ compensation and state-managed deductions. In addition to those company-level requirements, the state also requires specific information for each employee — such as job classifications and other details — to ensure compliance and calculate the correct payroll withholdings. This guide explains the fields Plane asks you to complete for each employee and how to fill them out accurately.
⚠️ Make sure you provide this information for every employee working in
Washington State — payroll can’t run without it.
Below an example of a blank form for an employee working in Washington. Use the start of the calendar year for the effective start date.
Where to Find the Required Information
Some fields in this form are provided directly by Washington State after you register for payroll accounts or receive exemption approvals. Other fields must be looked up based on the employee’s role or position. Use the breakdown below to determine where to find each input:
Field Group | How to Find It |
Washington LTC Exemption | Both the exemption status and the effective start date are provided by Washington State via an official exemption approval letter. |
Washington L&I Classification and Rates | The Risk Class Code must be looked up based on the employee’s role (L&I Lookup Tool). The Total Hourly Rate and Employee Withholding Rate are provided in your L&I rate notice after registration. Enter these values exactly as shown. |
Standard Occupational Classification (SOC) Code | Must be looked up based on the employee’s job using the BLS SOC code lookup. |
S Corporation & Corporate Officer Status | The 2% shareholder status is determined internally by your company. Corporate officer status is also determined internally and, if exempted, will depend on whether you’ve submitted the appropriate forms to Washington State. |
Field-by-Field Breakdown
1. Washington LTC Exemption
What it means:
Washington State’s WA Cares Fund requires most employees to contribute a small portion of their wages to fund future long-term care benefits.
Field options:
No: The employee will have LTC contributions deducted from their paycheck.
Yes: The employee is exempt from LTC tax (must have submitted a valid exemption letter to qualify).
Effective start date: The date the exemption takes effect (usually provided in the approval notice).
🔗 More info: WA Cares Fund Exemptions
2. Washington L&I Employee Risk Class Code
What it means:
This is a six-digit code (with a dash) that identifies the employee's job classification for workers’ compensation insurance. The classification is based on the type of work performed.
Why it matters:
Different job roles have different risk levels, which affect the insurance rate.
📌 Example codes:
4904 – Office workers
0510 – Carpenters
7101 – Janitorial services
🔗 Lookup risk classification codes: L&I Classification and Rate Lookup
3. 2% Shareholder of an S Corporation
What it means:
Indicates whether the employee (or an immediate family member) owns more than 2% of an S corporation. This status may impact federal and state payroll tax treatment.
Field options:
No: The employee does not meet the ownership threshold.
Yes: The employee is considered a 2% shareholder and may be treated differently for tax purposes.
Effective start date: The date this status took effect.
4. Washington L&I Total Hourly Rate
What it means:
This is the total hourly cost of workers' compensation insurance, including both the employer and employee share.
How to enter:
Enter the rate as a dollar amount, to the exact precision listed on the L&I rate notice (e.g., 1.1593).
🔗 Learn more: L&I Insurance Rates
5. Standard Occupational Classification (SOC) Code
What it means:
The SOC code is a six-digit federal job classification code used for labor statistics and employment reporting.
How to enter:
Enter the six-digit SOC code, including the dash (e.g., 15-1232).
🔗 Lookup SOC codes: Bureau of Labor Statistics SOC Lookup
6. Washington L&I Hourly Employee Withholding Rate
What it means:
This is the employee’s portion of the total L&I workers' compensation rate. It is withheld from the employee’s paycheck.
How to enter:
Enter the rate as a dollar amount per hour (e.g., 0.2391) as listed on the L&I rate notice.
🔗 Find withholding rates: L&I Insurance Rates
7. Corporate Officer Status (WA)
What it means:
Indicates whether the employee is a corporate officer or owner of the business.
Why it matters:
Corporate officers may be exempt from L&I and unemployment insurance if the business applies for and is approved for exemption.
Field options:
No: Employee is not a corporate officer.
Yes: Employee is an officer and may be eligible for exemption.
🔗 More info: Corporate Officer Exemptions - WA L&I
Final Summary
Field | What It Means |
Washington LTC Exemption | Determines if the employee contributes to WA Cares Fund |
L&I Employee Risk Class Code | Defines the job classification for workers' comp insurance |
2% Shareholder Status | Indicates special tax treatment for S-corp shareholders |
L&I Total Hourly Rate | Total cost of workers' compensation (employer + employee) per hour |
SOC Code | Federal job classification code (used for reporting) |
L&I Hourly Employee Withholding | Employee’s portion of the workers' compensation rate per hour |
Corporate Officer Status | Indicates if the employee may be exempt from L&I and unemployment taxes |
Keeping Your Information Up to Date
If you receive updated rates or classification details from Washington State in the future, please contact Plane Support to make sure your employee setup stays current and compliant.
Need More Help?
If you need further assistance completing these fields or understanding Washington State payroll requirements:
📞 Call Washington State L&I: 1-800-547-8367
🌐 Visit L&I’s website: https://www.lni.wa.gov
💬 Contact Plane Support: Reach out to us at support@plane.com