Enacting an excise tax on large employers on the amount of payroll expenses above the social security wage threshold to fund programs and services to benefit Washingtonians.

SB 5796 imposes a 5% excise tax on large Washington employers for payroll expenses exceeding the Social Security wage threshold (currently $168,600 per employee annually). It directly affects employers with over $7 million in annual payroll - estimated to be 17% of businesses - while exempting smaller businesses. The tax revenue funds public schools, health care, and social services by depositing funds into the state general fund. Employers must pay the tax directly (not deducted from employee wages), with the tax applying only to wages above the Social Security limit.