Also, WATCH OUT for the fact that employers often bring up TOTALLY NEW ALLEGATIONS during the hearing that weren't in their original appeal!!! My employer suddenly claimed I had been warned multiple times when that NEVER HAPPENED. Be prepared for them to make stuff up on the spot!

I'm dealing with a very similar situation right now! My employer also waited until after I was approved and receiving benefits to file their appeal. It's so stressful but the advice here is really reassuring. One thing I wanted to add - when you're preparing for the hearing, if you have any witnesses (like coworkers who knew about the restructuring), make sure to ask them ASAP if they'd be willing to testify. Some people are hesitant to get involved, but others are happy to help if they know the truth. Even if they can't participate in the hearing, they might be willing to write a brief statement about what they witnessed. Also, keep all your job search records organized during this time. Sometimes they ask about your work search efforts during the hearing, and having that documentation ready shows you're taking the process seriously. You've got this! The fact that ESD initially approved you after reviewing the case is definitely in your favor.

Bottom line - yes you have to pay federal taxes on unemployment benefits. Start setting aside money now if you're still collecting. The 10% withholding option is your friend. And if you're confused about anything, talk to a tax professional or find a way to reach someone at Washington ESD who can clarify.

I'm in a similar situation and this thread has been incredibly helpful! I've been collecting unemployment for about 4 months and had no idea about the tax implications. Just logged into my Washington ESD account and found the tax withholding option - it was buried in the account settings under "Manage Tax Withholding" like someone mentioned. Set it to 10% federal withholding starting with my next payment. Better late than never! Thanks to everyone who shared their experiences and advice. It's reassuring to know I'm not the only one who was caught off guard by this.

One last tip - if you do start collecting Social Security, make sure you understand how it might affect your spouse's benefits too, especially if they haven't started collecting yet.

I went through this exact situation last year at age 64. Washington ESD unemployment benefits definitely don't affect your Social Security calculation - they're completely separate systems. I collected both for about 4 months while job searching. The key things to remember: 1) Both are taxable income so plan for taxes accordingly, 2) You need to stay available for work to keep getting unemployment, and 3) If you find work while on early Social Security, there are earning limits to consider ($23,400 for 2025). I'd recommend using that Claimyr service others mentioned to get through to Social Security - it really does work better than calling directly. The peace of mind from having both income sources while looking for work was worth it for me.

Just as an update for those facing similar issues: ESD implemented a new security protocol in early 2025 that sometimes causes these login problems. The technical explanation is that they're using a new multi-factor verification system on the backend that occasionally gets out of sync with their user database. When you call, specifically ask them to "reset your MFA token synchronization" - that's the technical term that will help the agent understand exactly what needs to be fixed. This is different from a simple password reset.

I've been dealing with similar login issues for weeks now! What finally worked for me was calling ESD early in the morning (right when they open at 8 AM) - seems like the phone lines are less jammed then. When I got through, the agent told me that their system has been having problems with accounts that were created or had password resets during certain time periods in February and March. She had to manually "refresh" my account status on their end. The whole call took about 15 minutes once I got connected. Definitely frustrating that we have to jump through so many hoops just to file our claims, but at least there seems to be a fix when you can actually reach someone!

The system is actually pretty straightforward for seasonal workers once you understand it. The confusion usually comes from people not knowing about the base period earnings requirements.

One last tip - if your seasonal job was through a temp agency make sure you understand who your 'employer' was for Washington ESD purposes. Sometimes it's the agency, sometimes it's the actual worksite.