Washington Saves deadlines and penalties for employers
By Dustin Metcalf, CRPC® · Updated October 7, 2026
Timeline
| When | What happens | Status |
|---|---|---|
| 2026 | Your 2026 payroll hours count toward coverage. Nothing is due. | — |
| Jan–Jun 2027 | Pilot with volunteer employers | Planned |
| 2027 | Program opens | July 1 under current law; October 1 proposed |
| Dec 1, 2028 | Registration deadline for businesses with more than 20,800 employee hours (about 10+ full-time employees) | Proposed |
| Dec 1, 2029 | Registration deadline for all other covered businesses | Proposed |
| Jan 1, 2030 | Earliest date penalties can apply | Law |
How to tell which deadline is yours
Add up the hours worked in Washington by all your employees in the prior calendar year. Your Employment Security Department (ESD) quarterly reports are the easiest source. About 10,400 hours equals five full-time employees; 20,800 hours is about ten. Part-time hours count.
Penalties
No penalties apply before January 1, 2030. After that, the Department of Labor & Industries (L&I) first sends a warning letter and gives you 90 days to fix the issue. If it isn't fixed, fines can be up to $100, then $250, and up to $500 for willful violations.
Once you're registered: ongoing deadlines
- Add new hires within 30 days.
- Send employee payroll deductions within 7 business days of each payroll.
- Keep your employee list current.
Using the time well
The deadlines leave plenty of time, which is useful if you want to compare a plan of your own first. A SEP IRA can be set up and funded for a tax year as late as your business's tax filing deadline, including extensions, while a SIMPLE IRA generally has to be set up by October 1 of the year it starts. Compare the options.
Frequently asked questions
When is the Washington Saves deadline for employers?
Under proposed rules, December 1, 2028 for employers with more than 20,800 employee hours, and December 1, 2029 for all other covered employers.
What is the penalty for not complying with Washington Saves?
None before January 1, 2030. After that, L&I sends a warning letter with 90 days to comply, then fines of up to $100, $250 and $500 for willful violations.
When does Washington Saves start?
The program opens in 2027: July 1 under current law, with October 1 proposed. A pilot with volunteer employers is planned for January to June 2027.
Do I need to do anything in 2026?
No. There's no registration, filing or payment due in 2026, but your 2026 payroll hours help determine coverage.
Want this worked out for your business?
Book a free intro call with Dustin. We'll compare Washington Saves with a plan of your own, including estimated cost after tax credits and what you could save for yourself. If Washington Saves is the best fit, we'll tell you.