Payroll services in the District of Columbia

Struggling to keep up with payroll and HR in Washington D.C.? From local tax laws to employment requirements, we’ll help you save time and focus on growing your business.

How Paylocity helps Washington D.C. employers

Payroll that gets it done

  • Seamless automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
  • Smart safeguards: Built-in audits and integrations flag issues before they become errors.
  • Transparent calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.

Your extra HR team member

  • Automated workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
  • One employee record: A single source of truth for employee data keeps everything organized and compliant.
  • Effortless Time & Labor: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.

Compliance made simple

  • Compliance dashboard: Get a clear view of requirements with updated forms and expert HR support.
  • Built-in data access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
  • Always up-to-date forms: Access the latest district and federal forms right from the platform.

Challenges facing employers in Washington D.C.

D.C. maintains a complex compliance landscape that requires a careful balance between federal standards and district mandates.

As an employer, you must grapple with:

  • Stricter employment regulations ranging from pay transparency to paid family and medical leave.
  • Higher local minimum wage rates.
  • Unique laws that limit non-compete agreements, prohibit pre-employment inquiries, and require accommodations for breastfeeding employees.

Washington D.C. payroll fast facts

Minimum wage

$17.95

Income tax rate

4.00% - 10.75%

Right to work laws

None

Unemployment insurance tax rate

  • 2.70% (new employers)
  • 1.90% - 7.40% (experienced employers)
Last updated: January 21, 2026

D.C. tax and compliance resources

D.C. payroll tax compliance

Explore D.C.-specific payroll tax facts with current rates, filing deadlines, and agency links and resources. Stay ahead of changing regulations with reliable, up-to-date information.

D.C. employment and labor laws

Discover D.C.-specific employment and labor laws with details on wages, paid leave, overtime rules, and more. Enhance your workforce policies and management with these updated insights.

FAQs about paying employees in Washington D.C.

Does D.C. have income tax?

Yes, D.C. income tax is progressive, ranging from 4.00% - 10.75% based on the taxpayer's level of income. 

Is D.C. a right to work jurisdiction?

No, D.C. is not a right to work jurisdiction, but it can pass right to work laws in the future if it wishes to do so.

What are the D.C. final pay laws?

In Washington D.C., employees who voluntarily resign from a job must receive their final paycheck by the next regular payday or within 7 days of the separation, whichever is earlier. Involuntarily terminated employees must receive their final paycheck by the next working day.

Are there D.C. work break laws?

No, Washington D.C. currently has no laws regarding work breaks.


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