Can business owners apply for unemployment benefits in Washington?

I did have payroll set up through ADP and they took out all the normal taxes including unemployment. So that's a good sign?

Yes, that's exactly what you need. If unemployment taxes were paid on your wages, you should have a wage record with Washington ESD that would make you eligible to file a claim.

I had the same problem calling Washington ESD until someone told me about Claimyr. It's a service that helps you get through to agents - check out claimyr.com. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

Never heard of that before. Does it actually work or is it just another scam?

It's legit. They basically handle the calling process for you so you don't have to sit on hold for hours. I used it last month when I needed to get my adjudication issue resolved.

The business structure matters less than how you paid yourself. Sole proprietors typically can't get unemployment because they don't pay into the system. LLC owners who elect to be treated as employees and pay unemployment taxes can potentially qualify.

OK that makes sense. I'm a sole proprietor so I guess I'm out of luck then.

How did the application process go for you? Any special documentation needed?

Pretty straightforward actually. I filed online at esd.wa.gov and they processed it normally. The only extra step was verifying my employment status during the phone interview.

The control aspect used to be more of an issue, but Washington state law is pretty clear now - if you're a corporate officer who elected to be covered under unemployment insurance, you can receive benefits if you become unemployed through no fault of your own.

Good to know! I was worried about that part since technically I chose to close my business.

What kind of records specifically? W-2s, pay stubs, quarterly reports?

All of the above if you have them. Your W-2s are most important, plus any quarterly wage reports you filed with Washington ESD. The more documentation the better.

Hmm, I closed because I couldn't afford to keep it open anymore. Would that count as involuntary?

That sounds like it could be considered involuntary due to economic necessity. But Washington ESD would make that determination during your eligibility review.

How long did your claim take to get approved? I'm worried about delays.

Mine took about 3 weeks, but that was because they had to verify my employment status. Most claims process faster than that.

That's awesome! What did the agent tell you about the application process?

They said to file online like normal, but mentioned I might get a phone interview to verify my employment situation. Overall pretty straightforward if you have your wage records.

Do I need to look for jobs in the same industry or can I apply for anything?

You should look for suitable work based on your skills and experience. Doesn't have to be exactly the same, but should be work you're qualified for at a reasonable wage.

What if I only paid myself as a contractor with 1099s? I assume that doesn't count?

Correct, 1099 income doesn't qualify because no unemployment taxes were paid on it. You'd need W-2 wages with unemployment tax withholdings.

Good luck! The process is pretty straightforward if you have your documentation ready.

Hope it goes smoothly for you. If you run into any issues getting through to Washington ESD, that Claimyr service really does help with getting connected to agents quickly.

Exactly! I wasted months thinking I couldn't apply when I actually could have been getting benefits the whole time.

That's frustrating! The eligibility rules aren't always clearly explained anywhere.

Good point. I was paying myself $52k annually, so hopefully that translates to a decent weekly benefit amount.

That should give you a reasonable benefit amount. The formula is based on your highest earning quarter in your base period.

You need to report any self-employment income while claiming benefits. Small amounts might not affect your weekly benefit, but significant income could reduce or eliminate your payment for that week.

Makes sense. I was thinking about doing some freelance work but wanted to make sure I wouldn't lose my benefits entirely.

Same here! I thought I was completely out of options when my business failed.

It's worth checking even if you're not sure. The worst they can say is no, but you might be surprised.

That's good to know. I'm pretty confident I do since I used a payroll service, but I'll double-check my records before applying.

Smart approach. Having a payroll service is definitely a good sign that everything was handled properly.

It can matter for eligibility. Closing due to economic necessity or factors beyond your control is more likely to qualify than closing for purely personal convenience.

Mine was definitely economic - couldn't compete with larger companies anymore. Sounds like that should be okay then.

Absolutely agree. I would still be waiting if I hadn't used Claimyr to get through to someone.

Good to know. I'll keep that in mind if I run into any delays with my claim.