Do I need Washington ESD unemployment insurance if I have no employees?

If you have no employees, you typically don't need to register for Washington ESD unemployment insurance as an employer. The requirement kicks in when you start hiring people. However, as a business owner, you generally can't collect unemployment benefits yourself unless you were paying into the system as both employer and employee, which gets complicated.

wait im confused about this too... i thought all businesses had to pay unemployment insurance?

I went through this same situation last year! You don't need to worry about Washington ESD registration until you hire someone. But here's what I learned the hard way - if your business fails and you need to look for regular employment, you can't just immediately collect unemployment benefits because you weren't paying into the system as an employee. Had to deal with Washington ESD for weeks trying to figure out my eligibility.

Just echoing what others said - solo business owner here for 3 years, never had to deal with Washington ESD unemployment stuff until I hired my first part-timer last month.

One thing to add - even though you don't need unemployment insurance now, you should still be aware of other business registration requirements with the state. Don't confuse unemployment insurance with other business licenses or tax obligations.

THE WHOLE SYSTEM IS DESIGNED TO CONFUSE SMALL BUSINESS OWNERS! Why can't Washington ESD make this clearer on their website???

Quick question - what if you're a sole proprietor but you hire independent contractors? Does that change anything with Washington ESD requirements?

I had a similar question when I was freelancing - ended up calling Washington ESD directly but spent like 2 hours on hold. Definitely wish I'd known about better ways to reach them back then.

Thanks everyone! Sounds like I'm good for now and just need to remember to register with Washington ESD once I hire my first actual employee. Really appreciate all the insights.

This thread was helpful for me too - I'm in the same boat with my consulting business. Good to know I don't need to worry about Washington ESD stuff yet.

Just to clarify one more time for anyone reading - Washington state unemployment insurance is only required when you have employees on payroll. Self-employed individuals without employees have no obligation to register or pay into the system.

One more thing - if you do end up needing to contact Washington ESD in the future for any reason, I've heard good things about services that help you actually get through to an agent. Saw someone mention Claimyr earlier - might be worth bookmarking for later.

This is exactly the kind of practical business info I wish I'd had when starting out. Bookmarking this thread!

For what it's worth, I checked with my accountant about this same question and got the same answer - no employees means no Washington ESD unemployment insurance requirements.

Does anyone know if this is the same in other states or just Washington? Might be moving my business to Oregon next year.

This thread answered my question too - was worried I was missing some requirement for my home-based business. Glad to know I'm good for now.

Quick follow-up question - when you do hire your first employee, how long do you have to register with Washington ESD?

Appreciate everyone sharing their experiences here. Makes navigating the business side of things a lot less scary when you can get real answers from real people.

Last question - is there any benefit to voluntarily paying into unemployment insurance as a business owner even if you don't have employees?

This whole thread has been incredibly helpful - saved me from a lot of confusion and probably some unnecessary stress about compliance. Thanks to everyone who shared their knowledge!