Workers' Compensation and Unemployment Insurance
All businesses hiring employees are required to register for workers' compensation and unemployment insurance. By completing the Master Business Application, you will be registered for workers' compensation at the Department of labor and Industries and unemployment insurance at the Employment Security Department. 

After filing your application, the Department of Labor and Industries and the Employment Security Department will send you information about employee quarterly report forms.

Unemployment Insurance Tax
0.35-6.2% of the first $35,700 of an employees salary. The average tax rate for last quarter of 2008 was 1.7%; however, the rates may vary depending on the employers rate class.

Industrial Insurance
Workers' compensation (industrial insurance) provides no-fault industrial insurance benefits to most workers and employers in Washington who are injured in the course of their employment or develop an occupational disease as a result of their required work activities.

Washington is the only state with workers' compensation tax rates based on the hours worked, rather than per $100 of wages paid. This means there is not an inflationary increase built into the system when wages rise. Rates are based on business classification and experience. Insurance is not paid for hours the worker is off the job, including sick leave, vacation or holiday hours, and leaves of absence.

Workers' compensation pays for approved medical, hospital and related searvices due to workplace injuries and/or provides compensation for those who are temporarily unable to work full-time. Employers must provide coverage for their employees, in return, employers normally cannot be sued for damages when a work-related injury or illness occurs.

Employers purchase coverage through the Department of Labor and Industries. The agency manages and pays benefits out of an insurance pool called the Washington State Fund, financed by premiums paid by employees and employers.