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New Laws & Regulations Taking Effect Jan. 1, 2020

Jan 3, 2020
New laws and regulations taking effect include a B&O tax increase, minimum wage increase & the start of Paid Family and Medical Leave program employee benefit utilization.

B&O Tax Increase 

During the 2019 legislative session, the Legislature approved a B&O tax increase on certain professional services. As of Jan. 1, 2020, there will now be four B&O rates for services: 1.5, 1.8, 2.0, and 2.5 percent. Of the four rates, dentists will be subject to a B&O tax rate of 1.8 percent. 

Minimum Wage Increase

Beginning Jan. 1, 2020, the statewide minimum wage will increase from $12 to $13.50 per hour. The upcoming minimum wage increase is a result of Initiative 1433, passed in 2016, which instituted a multi-year minimum wage increase across the state.

Paid Family and Medical Leave

Beginning Jan. 1, 2020, employers will need to offer paid family and medical leave through either the state plan or a voluntary plan. While employees cannot begin to utilize benefits until January, employers have already started to remit employee premiums. 

For more information on these regulations and how to comply, visit wsda.org/regulations.