Can business owners file for unemployment benefits in Washington?

I did pay myself through payroll and had W-2s, so I think I might qualify then?

Yes, if you were on payroll with proper tax withholdings including UI taxes, you should be eligible to file a claim.

Did Washington ESD give you any trouble during the application process as a former business owner?

Not really, but they did take longer to process my claim - about 5 weeks instead of the usual 2-3. I had to provide extra documentation showing I was legitimately employed by my own business.

How much does something like that cost? Seems too good to be true.

It's worth it when you're desperate to talk to someone. Way better than sitting on hold for hours only to get disconnected.

I might have to try that, been calling for days with no luck getting through to anyone at Washington ESD.

Where exactly on their site? I've been looking everywhere and can't find clear info about business owners.

Look under the 'Employer' section then 'Tax Information' - there's a subsection about corporate officers and business owners.

Correct, sole proprietors who only file 1099s aren't covered by regular unemployment insurance. You would need to have been paying into the system as a W-2 employee.

this is ridiculous... business owners take all the risk and get screwed when things go bad

How did you handle the job search requirements? Do they expect you to look for work in your same industry or can you search for any job?

You can search for any suitable work, doesn't have to be in the same field. I ended up taking a management position at another restaurant while collecting benefits.

You might want to look into other assistance programs like SNAP or housing assistance while you figure out your next steps.

Yeah I'm already applying for everything I can find. This whole situation sucks.

So if I didn't elect coverage as an owner beforehand, I'm out of luck even if I was paying payroll taxes?

If you were legitimately on W-2 payroll as an employee of your business with UI taxes withheld, that should count. The election thing is more for owners who want coverage without being on regular payroll.

Easier said than done when you're bootstrapping a startup and every dollar matters.

True, but the protection is worth it when things go sideways. Learned this lesson the hard way myself.

How long did the whole process take from filing to getting your first payment?

About 7 weeks total. They had to verify my employment history and wage records which took extra time since I was both employer and employee.

What kind of documentation did they ask for during adjudication?

Bank statements, lease termination notices, final tax returns, anything proving the business closure was legitimate and not voluntary.

Did you have to prove you were actively looking for work or could you focus on starting a new business?

You still have to do the job search requirements - 3 contacts per week minimum. Can't just say you're starting a new business and skip the search.

Definitely a good idea if your business can afford it. Even a small salary gives you some protection.

gonna talk to my accountant about this next week, thanks for the heads up everyone

In my case it was definitely legitimate - lost my biggest client and couldn't afford rent anymore. Have all the documentation to prove it.

That should be fine then. Just be prepared for extra questions during the adjudication process since you were the owner.

Did they actually help answer your questions or just get you through to the regular customer service?

Got me to a real ESD agent who could look up my account and explain the business owner requirements. Much better than the automated system.

Perfect summary, thank you! I definitely paid through W-2 payroll so I'm going to file my claim this week.

Good luck! Just be patient with the process - business owner claims take longer to approve than regular employee claims.

I have all my lease documents, final utility bills, and client communications showing the situation. Should be enough documentation.

That sounds perfect. The more documentation you have, the smoother the adjudication process will go.

Same here! Really appreciate everyone sharing their experiences. Makes the whole process seem less intimidating.

This is why I love this forum - real people with real experiences helping each other navigate the Washington ESD system.