Can you collect Washington ESD unemployment if you are a 1099 employee in 2023?
I've been working as a 1099 contractor for the past year and my main client just ended our contract. I'm wondering if I can file for unemployment benefits with Washington ESD since I wasn't technically an employee? I paid quarterly taxes but didn't have unemployment insurance taken out of my payments. Has anyone been in this situation? I'm really stressed about this because I don't have any other income coming in right now.
49 comments


Tami Morgan
Unfortunately, as a 1099 contractor you typically can't collect regular unemployment benefits in Washington since you didn't pay into the UI system. The Washington ESD unemployment system is funded by employer contributions and employee payroll deductions, which 1099 workers don't have.
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Maya Diaz
•That's what I was afraid of. Are there any other options for independent contractors like me?
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Rami Samuels
•this is so unfair! contractors pay taxes too but get no safety net
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Haley Bennett
There might be some exceptions depending on your specific situation. If you can prove you were misclassified as a 1099 when you should have been an employee (W-2), you might be able to file a claim with Washington ESD. You'd need to show that your client had control over how, when, and where you worked.
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Maya Diaz
•How would I go about proving misclassification? My client did set my schedule and I worked exclusively for them.
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Haley Bennett
•Look at the Washington State Department of Labor's worker classification test. If they controlled your work methods, provided equipment, set your schedule, and you didn't work for other clients, you might have a case.
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Douglas Foster
I was in a similar situation last year and had to fight with Washington ESD for months. Even if you think you were misclassified, getting through to someone to discuss your case is nearly impossible. I spent weeks calling and either got busy signals or was on hold for hours before getting disconnected.
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Nina Chan
•I had the same problem trying to reach Washington ESD! I actually found this service called Claimyr (claimyr.com) that helps you get through to ESD agents by phone. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me so much time and frustration.
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Douglas Foster
•Really? How does it work exactly? I'm desperate at this point.
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Nina Chan
•Basically they handle the calling process for you and connect you when they reach an agent. Way better than spending hours on hold yourself.
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Ruby Knight
Wait, so if I've been doing 1099 work but also had some W-2 employment this year, would that make a difference for Washington ESD benefits?
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Tami Morgan
•Yes! If you had W-2 employment where unemployment taxes were paid, you can file a claim based on those wages. Your 1099 income wouldn't count toward your benefit calculation, but your W-2 wages would.
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Ruby Knight
•That's good to know. I worked W-2 for about 6 months before going freelance.
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Diego Castillo
just want to add that even if you can't get regular UI, you should still apply for other assistance programs. food stamps, medicaid, etc. being 1099 sucks when stuff like this happens
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Maya Diaz
•Good point, I hadn't thought about other programs. This whole situation is overwhelming.
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Haley Bennett
For anyone dealing with 1099 vs W-2 classification issues, Washington State uses a specific test to determine worker status. The main factors are: 1) Control over work performance, 2) Financial control, and 3) Type of relationship. If your client controlled HOW you did the work, provided tools/equipment, set your schedule, and you worked exclusively for them, you might have grounds for reclassification.
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Maya Diaz
•This describes my situation exactly. They provided my computer, set my hours, and I couldn't work for anyone else per our agreement.
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Logan Stewart
•Sounds like classic misclassification to me. A lot of companies do this to avoid paying employment taxes.
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Haley Bennett
•If that's the case, you should definitely file a worker classification determination request with Washington ESD. It might take time but could open up your eligibility for benefits.
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Rami Samuels
the whole gig economy thing is such a mess. companies get all the benefits of having employees without any of the responsibilities. meanwhile we're left hanging when work dries up
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Diego Castillo
•exactly! they want us to be available like employees but treat us like disposable contractors
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Mikayla Brown
•There's been talk about changing these laws but nothing concrete yet.
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Douglas Foster
Update on my situation - I finally got through to Washington ESD using that Claimyr service someone mentioned. The agent was actually really helpful in explaining the misclassification process. Turns out I might have a case after all.
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Maya Diaz
•That's encouraging! How long did the whole process take with their help?
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Douglas Foster
•The actual call connection took about 20 minutes instead of me sitting on hold for hours. The ESD agent walked me through filing a determination request.
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Sean Matthews
Important note - even if you file for reclassification, you still need to meet Washington ESD's other eligibility requirements. You need to have earned enough wages in your base period and be able and available for work.
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Maya Diaz
•What exactly is the base period? I keep seeing that term mentioned.
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Sean Matthews
•The base period is the first four of the last five completed calendar quarters before you file your claim. So if you file in December 2023, your base period would be July 2022 through June 2023.
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Ali Anderson
also worth noting that if you do get approved after a reclassification, your employer might owe back taxes and penalties to Washington ESD. they don't like that and might fight it
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Maya Diaz
•Should I be worried about retaliation from my former client if I pursue this?
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Ali Anderson
•They can't legally retaliate, but if you're hoping to work with them again in the future, it might complicate things.
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Tami Morgan
One more thing to consider - the appeals process for worker classification can take several months. In the meantime, you won't be receiving benefits, so you might want to look into temporary assistance programs or emergency aid.
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Maya Diaz
•Months?? I was hoping this would be resolved quickly. I can't wait that long for income.
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Zadie Patel
•Washington State has some emergency assistance programs through DSHS that might help bridge the gap while you're waiting.
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A Man D Mortal
I went through this exact situation in 2022. Filed for reclassification and it took 4 months but I eventually got approved. Had to provide tons of documentation about my work arrangement.
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Maya Diaz
•What kind of documentation did you need? I want to start gathering everything now.
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A Man D Mortal
•Contracts, email communications showing they controlled my work, evidence of set schedules, proof they provided equipment, anything showing you were treated like an employee.
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Declan Ramirez
•did you get back pay for the whole period?
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A Man D Mortal
•Yes, once approved I got retroactive benefits back to my original filing date. But it was a long wait.
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Emma Morales
Another option to consider is Self-Employment Assistance if Washington has that program. Some states allow entrepreneurs to collect unemployment while starting a business instead of looking for traditional employment.
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Maya Diaz
•I hadn't heard of that program. Does Washington ESD offer it?
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Emma Morales
•I'm not sure if Washington specifically has SEA, but it's worth asking about when you speak with an ESD representative.
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Nina Chan
For anyone still struggling to reach Washington ESD about classification issues, I can't recommend Claimyr enough. Used them twice now and both times got connected to knowledgeable agents who actually helped solve my problems.
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Katherine Hunter
•Is there a cost for using their service?
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Nina Chan
•There is a fee but honestly it was worth it to avoid the endless hold times and busy signals. Check their website for current pricing.
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Maya Diaz
Thanks everyone for all the advice. I'm going to start by filing a worker classification determination request with Washington ESD and gathering all my documentation. Even if it takes months, it seems like my best shot at getting benefits.
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Tami Morgan
•Good luck! Make sure to keep detailed records of everything you submit and all communications with ESD.
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Douglas Foster
•Definitely consider using Claimyr if you need to speak with someone at ESD. Made a huge difference for me.
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Lucas Parker
•keep us posted on how it goes! this info could help other contractors in similar situations
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