2025-02 Reminder: Combined Excise Tax Filing Due

Summary Read:
A reminder that the deadline for filing the January 2025 Washington State combined excise tax return is approaching. Businesses should submit their sales information by February 18, 2025, to avoid late filing. Also included are recent updates to local sales tax rates effective January 1, 2025, and changes to state and city minimum wages.

This is a friendly reminder that the due date to file the January 2025 Washington State Department of Revenue excise tax return is approaching.

If you have not provided the information to our office yet, please send us your January* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Tuesday morning (02/18/25) to ensure timely filing.

Notification from Washington Department of Revenue:

Quarter 1, 2025 Update — Sales Tax Rate Tools

The Quarter 1, 2025, Washington State sales tax rate changes are now available.

Local sales tax rate changes in the following areas beginning January 1st, 2025:

Local sales & use tax change notices

Lodging rate change notices

A complete list of location codes and tax rates can be found here on the website.

2025 Minimum Wage Resources

Washington Statehttps://www.lni.wa.gov/news-events/article/24-24

The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.

Seattlehttps://www.seattle.gov/laborstandards/ordinances/minimum-wage?utm_medium=email&utm_source=govdelivery

Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.

Bellinghamhttps://cob.org/services/business/city-minimum-wage

On January 1, 2025, the city minimum wage will be set at $1.00 above the applicable Washington State minimum wage ($17.66).

Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage.

Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.

Burienhttps://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

“Level 1 employer” means all employers, including franchisees, that employ 500 or more FTEs in King County or franchisors who employ 500 or more FTEs in the aggregate. Effective January 1, 2025 at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $4.50 over the Washington State hourly minimum wage.

“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025 at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $3.50 over the Washington State hourly minimum wage.

“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.

EverettLocal Minimum Wage Rates

Effective July 1, 2025. $20.24/hour for employers with more than 500 employees in Washington and $18.24 for employers with between 15 and 500 employees. Employers with 14 or fewer employees are not to be affected.

King County (unincorporated)Minimum wage in unincorporated King County – King County, Washington

On January 1, 2025, the minimum hourly wage in unincorporated King County will be $20.29.

There will be three temporary exceptions, based on business size and gross revenue.

Please check whether or not your business falls under this jurisdiction by entering your business address here: ArcGIS Web Application.

Rentonhttps://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:

Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.
SeaTachttps://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

2025 Minimum Wage: $20.17 per hour

The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.

 

Tukwilahttps://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/

Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:

(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

If you have questions, be sure to reach out to us.

Sincerely,

ALISA NA CPAs & Advisors