Minimum Wage:
Starting in 2023, Washington state will have one of the highest state minimum wage in the country when it increases to $15.74 per hour, about a 9% increase from the prior year. In 2022, the minimum wage was $14.49 per hour. Minimum wage applies to workers 16 years or older. 14 and 15-year-olds must be paid at 85% of the minimum wage. Localities such as SeaTac and Seattle provide for even higher minimum wage. If a worker works more than 40 hours per week, that employee must be paid overtime unless they are exempt employees. Even agricultural workers are entitled to overtime if they work more than 48 hours per week in 2023. In 2024, this is lowered to 40 hours per week for agricultural workers.
Job Posting Transparency Law
A business with 15 or more employees will need to include the following information on internal job postings or advertisements: salary range or pay scale, description of all benefits offered, and any other type of compensation. This means that job advertisements will be longer than before in your newspapers or online.
Capital Gain Taxes
The Washington State Supreme court ruled that the State of Washington can legally collect capital gain taxes from Washington residents. The state constitution prohibits an income tax but the court ruled that the capital gains tax was an excise tax and therefore legal. The capital gain tax for 2022 is due April 18, 2023 and due at the same time as the federal income tax deadline. If an extension for filing the individual tax return was filed, an estimated payment must be made. The capital gains tax rate is 7%. There is a standard deduction of $250,000 per individual, married couple or domestic partnership. There are certain exemptions, the major exception being capital gain on the sale of real estate and assets in retirement accounts. Many wealthy people will be moving out of Washington to avoid this tax.