Confused about who pays unemployment taxes - Washington ESD question

Your employer pays the unemployment taxes, not you! In Washington state, employers pay both state unemployment insurance (SUTA) and federal unemployment tax (FUTA). You won't see any unemployment deductions on your paystub because it's 100% employer-funded. The Washington ESD collects these taxes from employers to fund the unemployment insurance program.

yeah employers hate paying unemployment taxes lol. my old boss used to complain about it all the time. but that's how the system works - they pay in so workers can get benefits when they get laid off or fired without cause

To be more specific, Washington employers pay state unemployment insurance tax to Washington ESD based on their payroll and their experience rating. The tax rate varies by employer - new employers pay a standard rate, but established employers pay rates based on how many former employees have filed UI claims. There's also the federal unemployment tax (FUTA) that goes to the federal government.

I had to deal with Washington ESD when I got laid off last year and couldn't get through to anyone for weeks! The phone system was impossible. Finally found this service called Claimyr (claimyr.com) that helped me get connected to an actual person at Washington ESD. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me so much frustration trying to get my claim status updated.

EMPLOYERS PAY EVERYTHING! Sorry for caps but this is important - you as an employee pay ZERO unemployment taxes. Your employer pays both state and federal unemployment taxes. The only thing that comes out of your check is regular income tax, Social Security, and Medicare. Unemployment insurance is completely employer-funded in Washington state.

This is actually really important to understand because some people think unemployment benefits are like welfare when they're actually insurance that employers pay for. When you file for UI benefits, you're claiming insurance that was paid for by your previous employers.

i think there might be some states where employees pay part of unemployment tax but not washington. here it's all employer paid. dont quote me on other states tho

The tax rates also change based on the health of the unemployment trust fund. When the fund gets low (like during recessions), tax rates can go up across the board. During COVID the Washington unemployment fund got pretty depleted.

Just want to add that even though employers pay the taxes, good employers don't mind because they know it provides security for their workers. It's part of the social safety net that makes our economy more stable.

For anyone who needs to contact Washington ESD about their benefits or has questions about eligibility, I also had success with that Claimyr service someone mentioned earlier. Was able to get through and talk to someone about my weekly claim certification when I couldn't reach them any other way.

Bottom line is you don't need to worry about paying unemployment taxes as an employee in Washington. Your employer handles all of that. Just focus on doing your job well and you'll be covered if something happens.

One thing to remember is that you need to have worked for employers who paid these taxes to be eligible for benefits. If you work under the table or for employers who don't pay their taxes, you won't be covered.

Honestly the whole system works pretty well when you understand it. Employers pay in, workers get protection when they lose jobs through no fault of their own. Much better than having no safety net at all.

Also worth noting that Washington ESD publishes information about unemployment tax rates and collections if you're curious about the numbers. It's all public information since it's a government program.

Thanks for asking this question OP! I actually wasn't 100% sure myself and learned something new today about how the experience rating affects employer tax rates.

If anyone else is dealing with Washington ESD issues and can't get through their regular phone lines, definitely check out that Claimyr thing. I was skeptical at first but it actually worked to get me connected when I needed help with my claim status.

One last thing - make sure you keep good records of where you work and when, because if you ever need to file for unemployment, Washington ESD will verify your work history with your previous employers who paid those taxes.

Hope this all helps! The key takeaway is that unemployment insurance is paid for by employers, not employees, so you're automatically covered when you work for legitimate employers in Washington state.