Confused about what wages are subject to unemployment tax - Washington ESD question

That makes sense about the expense reimbursements. So my commission bonuses would definitely count toward my benefit calculation then?

Yes, commissions are considered wages for unemployment purposes as long as they're part of your regular compensation structure.

Do you remember approximately what percentage of your wages your weekly benefit ended up being?

It was roughly 60% of my average weekly wages, but it depends on your total earnings in your base period.

That sounds helpful, I've been dreading trying to call Washington ESD directly. How long did it take them to connect you?

Much faster than calling myself. They handle all the waiting and calling back until they reach someone, then connect you directly.

Oh interesting, so if I made more than $68,500, my employer only paid unemployment tax on part of it, but my benefits would still be calculated on my full wages?

Exactly. The tax cap affects what your employer pays, but your benefit calculation uses all qualifying wages from your base period.

This is confusing me too. So wages above the cap still count for our benefits even though no tax was paid on them?

Tips that are reported to your employer and show up on your W-2 would count as wages. Cash tips that weren't reported might not be included in your wage calculation.

oh no i definitely haven't been reporting all my cash tips... does that mean my benefits would be lower?

Your benefits are based on wages that were reported and had taxes taken out. Unreported income wouldn't be included in Washington ESD's calculation.

That's good to know about 1099 work not counting. I had some consulting income last year that was 1099.

Yeah, only wages where unemployment tax was actually deducted count toward your benefit calculation. The 1099 work might affect your job search requirements though.

Vacation payouts can be tricky. If it's paid as a lump sum when you leave, it might affect when you can start collecting benefits rather than your benefit amount calculation.

So it could delay when I can start getting unemployment? That's frustrating since I earned that vacation time.

This is exactly the kind of question where Claimyr really helped me. The agent was able to look at my specific situation and explain how my vacation payout would be handled.

I do have health insurance and 401k deductions. So those would lower the wages used for my benefit calculation?

Yes, because unemployment tax is typically calculated on your wages after those pre-tax deductions are taken out.

I've only worked in Washington, so hopefully that keeps things simpler for my claim.

Lucky you! I worked in Oregon for part of my base period and it took forever for Washington ESD to get those wage records.

How do I know which quarters were my highest earning? Is that something I can figure out before filing?

You can look at your pay stubs or W-2s by quarter. Washington ESD will also tell you your base period wages when you file your claim.

Wait, so severance pay could prevent you from getting unemployment right away? That seems unfair.

It depends on how the severance is structured and paid out. Some severance is considered wages for specific time periods, which can create waiting periods.

This is another situation where talking to a Washington ESD agent through Claimyr was super helpful. They could explain exactly how my severance would affect my claim timing.

That's exactly why I ended up using Claimyr. The Washington ESD phone system is nearly impossible to navigate on your own.

might have to try that. tired of wasting hours calling just to get hung up on

I tried that tool but wasn't sure which wages to include. Sounds like I should use all my W-2 wages from my base period?

Yes, include all wages that had unemployment tax deducted. The tool should give you a ballpark estimate.

That's good to know. I get an annual performance bonus that should count then.

As long as it shows up on your W-2 and had taxes taken out, it should be included in your wage calculation.

Tell me about it. Every situation seems to have different rules and exceptions.

It's complicated because there are federal and state rules that sometimes overlap or conflict. Plus different types of income have different tax implications.

Good advice. I have most of my recent pay stubs but might need to request older ones from HR.

Definitely get those older stubs if you can. Washington ESD looks back 5 quarters for your base period, so you might need wage info going back over a year.

Agreed! I feel much more prepared to file my claim now that I understand what wages count.

Same here. At least now I know what questions to ask when I finally get through to an agent.

That's a good point. Better to get it right the first time than deal with corrections later.

Exactly why services like Claimyr can be worth it. Getting accurate information upfront saves a lot of headaches down the road.

Definitely helps! Thanks to everyone who shared their experiences and knowledge.