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Bottom line: file when you need to, don't overthink it. I've collected unemployment 5 times over 20 years and never had an issue. The system is there to help people between jobs, not to punish them for needing help multiple times.
This has been such a helpful discussion. I'm bookmarking this thread for future reference. Really appreciate everyone sharing their experiences and knowledge about the Washington unemployment system.
The whole process seems overwhelming when you first look at it but honestly it's pretty straightforward once you start. Just follow the prompts and you'll be fine.
If you're worried about making mistakes, the Washington ESD customer service staff are actually pretty helpful when you can reach them. They'd rather help you get it right the first time than deal with problems later.
Last piece of advice - don't wait to apply. Your claim is effective from the date you file, not from when you lost your job. So even if you're unsure about something, it's better to start the process and clarify details later than to wait too long.
One more thing - if you had any federal taxes withheld from your unemployment benefits, that will show up on your 1099-G too. So you'll get credit for whatever was already withheld when you file your return.
Bottom line: yes you pay federal taxes on unemployment benefits, no you don't pay state taxes in Washington, and you should set up withholding if you're still collecting. Plan to owe around 15-20% of your total benefits if you didn't have withholding.
Giovanni Moretti
So wait, if I had multiple jobs last year do all those employers contribute to my benefit amount?
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Diego Vargas
•Your benefit amount is calculated based on wages from all covered employers during your base period. Each employer that paid you wages contributed to the fund through their payroll taxes.
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Giovanni Moretti
•That makes sense! So it's not just my most recent employer that's 'paying' for my benefits.
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Fatima Al-Farsi
this whole thread has been super helpful! I had no idea how the financing worked behind the scenes. Thanks everyone for explaining it so clearly
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Chloe Harris
•Same here! I feel like I understand the system so much better now.
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Dylan Cooper
•Yeah it's actually pretty interesting how it all works together. The more you know!
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