Confused about Washington ESD unemployment insurance tax - do I pay into it?

In Washington state, employees do NOT pay unemployment insurance tax. Only employers pay into the unemployment insurance system. What you're seeing on your paystub is probably something else - maybe state disability insurance or federal taxes. Unemployment insurance is funded entirely by employer contributions to Washington ESD.

Unemployment insurance tax is basically how the whole UI system gets funded. Employers pay a percentage of their payroll to Washington ESD, and that money goes into the unemployment insurance trust fund. When people file unemployment claims, that's where the benefit payments come from. The tax rate varies by employer based on their experience rating - companies with more layoffs pay higher rates.

I used to work in payroll and can confirm - employees in Washington don't pay unemployment insurance tax. The employer pays both state unemployment insurance (SUTA) to Washington ESD and federal unemployment tax (FUTA). The rates change annually and are based on the employer's claim history. If you're seeing deductions, check if it's for Paid Family Medical Leave or Long Term Care - those are newer programs where employees do contribute.

Quick question - if employers pay all the unemployment insurance tax, does that mean I earned my benefits just by working? I keep worrying that I haven't "paid in enough" when I see discussions about UI claims.

This whole system can be confusing when you're trying to understand your paystub! I remember being really confused about all the different deductions when I first started working. At least unemployment insurance isn't one you have to worry about as an employee in Washington.

Does anyone know what the current unemployment insurance tax rate is for employers? Just curious how much companies are actually paying per employee.

I'm still trying to wrap my head around this. So when I file for unemployment, the money comes from a pool that all employers paid into? It's not like a specific account with my name on it?

This is really helpful! I always wondered why some states have employee contributions and Washington doesn't. Is there a reason for that difference?

Good to know this info in case I ever need to file for unemployment. At least I don't have to worry about whether I've contributed enough since that's not how it works in Washington.

My employer's HR department explained this during onboarding but I totally forgot until now. Thanks for the refresher everyone!

So basically as employees we benefit from this system without having to pay into it directly. That seems pretty fair since losing your job is stressful enough without worrying about whether you paid enough in taxes.

Does the unemployment insurance tax rate change based on the economy? Like do employers pay more when unemployment is high?

This thread has been super educational. I feel like I understand my paystub better now and know what to expect if I ever need to file for UI benefits.

One more question - if I work for multiple employers, do they all pay unemployment insurance tax on my wages?

Thanks everyone for explaining this! I was also confused about who pays what. It's nice to know that as employees we're covered without having to track contributions ourselves.

Good info to have. I'll stop worrying about those paystub deductions now that I know unemployment insurance isn't one of them in Washington!