Can a sole proprietor collect unemployment benefits in Washington?

That's what I was afraid of. Are there any other programs that might help someone in my situation?

You could check with DSHS for other assistance programs like food assistance or temporary cash assistance. Also, some local organizations offer emergency financial help for small business owners.

You're thinking of PUA (Pandemic Unemployment Assistance) but that program ended in September 2021. It was a temporary federal program specifically for the pandemic.

Oh darn, I was hoping that was still available. That would have been perfect.

I did some contract work last year where I got 1099s, but no W-2s. Would that count for anything?

Unfortunately, 1099 income doesn't count toward unemployment eligibility since no unemployment taxes were paid on it. You need W-2 wages from covered employment.

I had the same problem until I found Claimyr.com - they help you get through to Washington ESD agents. I watched their demo video at https://youtu.be/7DieNd3C7zQ and it actually worked. Got connected to an agent in about 20 minutes instead of spending hours calling.

Really? That sounds too good to be true. How does it work exactly?

They basically handle the calling and waiting for you, then connect you when an agent is available. Saved me so much time and frustration.

I wouldn't recommend that approach. If you don't meet the basic eligibility requirements, you'll just waste time and potentially create issues with false claims.

Fair point, I was just thinking there might be edge cases we don't know about.

I understand the frustration, but sole proprietors don't pay unemployment taxes on their own earnings - only on employees they hire. The system is designed for employer-employee relationships.

still doesn't make it right. we're left out in the cold when business goes bad

Exactly. If you incorporate and elect to pay unemployment taxes on your wages as an officer/owner, you could potentially qualify. Or any W-2 wages you earn would count toward a future claim.

That's good to know for planning purposes. Wish I had known this a few years ago.

That's a great suggestion! I hadn't thought about local programs. I'll definitely look into what's available in my area.

Also check with your local chamber of commerce - they often know about resources that aren't widely advertised.

No, paying unemployment taxes for employees doesn't create eligibility for the business owner unless the owner is also paying themselves wages subject to unemployment tax.

Got it, thanks for clarifying that.

While the basic structure is similar across states, there can be differences in specific rules and benefit amounts. Best to check with your state's unemployment agency for definitive answers.

Good point. I should probably talk to an accountant about the overall impact before making any structural changes to my business.

Exactly. There are pros and cons to incorporating that go way beyond just unemployment eligibility.

Thanks for the confirmation! I'm definitely going to try that. These phone lines are impossible otherwise.

In Washington, you need wages in at least two quarters of your base period, and your total wages must meet the minimum threshold. For 2025, you need at least $7,000 in your highest quarter and total wages of at least 1.25 times your highest quarter.

That's really helpful! So even part-time W-2 work could potentially qualify someone if they earned enough.

That's really smart planning. I wish I had thought about that when I first went full-time with my business.

That would require significant changes to state law and funding mechanisms. It's possible but would likely take years to implement if it ever happens.

That might be what I need to do too. Thanks for sharing your experience - it helps to know I'm not alone in this situation.

That's exactly why I need to get through to them! I keep hitting busy signals though.

Definitely try that Claimyr service - it's the only way I've been able to reach Washington ESD lately. Check out claimyr.com and see if it works for you.

Thanks for the tip! I'll check out their website and see what's available.

Glad it helped! I definitely learned a lot from everyone's responses too.

That's excellent advice. Building my own emergency fund should definitely be a priority once things improve.

Exactly! Think of it as self-insurance since we don't have the safety net that employees have.

Happy to help! Feel free to ask if you have any other questions about unemployment eligibility or benefits.