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Omar Fawaz

Do all employers have to pay unemployment insurance in Washington state?

I'm trying to understand if my previous employer was supposed to be paying into the Washington ESD unemployment system. I worked for a small tech startup with only 6 employees for about 8 months before they laid me off. When I tried to file my UI claim, there's some confusion about my work history showing up properly. The company seemed pretty disorganized with their payroll stuff. Are there any employers in Washington that don't have to pay unemployment insurance taxes? I want to make sure I'm not missing out on benefits I'm entitled to.

In Washington state, most employers are required to pay unemployment insurance taxes if they meet certain criteria. Generally, if a business has employees who earned at least $1,000 in any calendar quarter, they need to register with Washington ESD and pay UI taxes. There are very few exceptions - mainly some agricultural workers, independent contractors (though this gets complicated), and certain family employment situations.

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Omar Fawaz

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That definitely sounds like it should apply to my situation. We were all regular W-2 employees and the company was paying way more than $1,000 per quarter in wages.

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Diego Vargas

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Yeah if you were getting W-2s then they absolutely should have been paying into the system. Sounds like maybe they weren't properly registered?

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This happened to me with a previous employer! They weren't paying their UI taxes properly and when I got laid off, my claim got all messed up. Took forever to sort out because Washington ESD had to investigate the employer's tax situation first.

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Omar Fawaz

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Oh no, that's exactly what I'm worried about. How long did it take to resolve? I really need these benefits to start coming through.

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It was like 6 weeks of back and forth. But here's what helped - I used this service called Claimyr (claimyr.com) to actually get through to someone at Washington ESD who could look into it. There's even a demo video (https://youtu.be/7DieNd3C7zQ) that shows how it works. Way better than trying to call the regular number.

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Omar Fawaz

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Thanks, I'll check that out. I've been trying to call for days and just get disconnected every time.

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StarStrider

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Small employers sometimes think they can avoid UI taxes but Washington state is pretty strict about this. If your employer had any employees and was paying wages, they almost certainly should have been registered. The fact that your work history isn't showing up properly is a red flag that they weren't compliant.

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Sean Doyle

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What happens to the employer if they weren't paying their taxes? Do they get in trouble?

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StarStrider

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Yes, Washington ESD can impose penalties and interest on unpaid taxes. They can also pursue collection actions. But the important thing for the employee is that you can still get benefits - Washington ESD will work to establish your wage credits even if the employer was non-compliant.

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Zara Rashid

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ugh this is so frustrating when employers don't do their basic responsibilities!! i had a similar issue with a restaurant job where they were treating everyone like independent contractors but we were clearly employees. took months to straighten out my UI claim

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Luca Romano

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The misclassification issue is huge, especially in restaurants and gig work. If you're being treated like an employee (set schedule, using company equipment, etc.) but getting a 1099, that's often illegal.

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Zara Rashid

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exactly! and then when you need unemployment benefits you're screwed because nothing was reported correctly

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Luca Romano

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For your specific situation, I'd recommend gathering all your documentation - pay stubs, W-2s, any employment agreements. When you speak with Washington ESD, they'll need this to establish your wage credits if the employer wasn't properly reporting. The good news is that Washington state has processes to handle these situations.

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Omar Fawaz

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I have all my pay stubs and my W-2 from last year. Should I bring anything else when I finally get through to someone?

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Luca Romano

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Any emails or documents about your job duties, start date, end date, and reason for separation would be helpful. Also if you have any communication about the layoff, that's important for establishing you weren't terminated for misconduct.

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Nia Jackson

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Just want to add that there are some specific exemptions but they're pretty narrow. Like if you worked for your spouse's business under certain conditions, or some agricultural work, or if you were a true independent contractor. But a regular tech startup with W-2 employees definitely should be paying UI taxes.

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Diego Vargas

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Yeah the independent contractor thing is where a lot of employers try to cheat the system. But Washington state has gotten really strict about that classification.

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My brother got reclassified from 1099 to W-2 retroactively and the company had to pay all the back taxes plus penalties. It was a mess but he ended up getting his unemployment benefits.

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CosmicCruiser

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If Washington ESD determines that your employer should have been paying UI taxes but wasn't, they can establish what's called 'alternative base period' wage credits. This might delay your claim processing but you should still be able to get benefits based on your actual wages earned.

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Omar Fawaz

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That's good to know. I was worried I might not qualify at all if my employer messed up their tax obligations.

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Aisha Khan

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Yeah Washington ESD tries not to penalize workers for their employer's mistakes. But definitely document everything and be prepared for some extra paperwork.

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Ethan Taylor

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I work in HR and can confirm that virtually all employers in Washington with employees need to pay UI taxes. The threshold is really low - just $1,000 in wages in any quarter. Even if it's just one part-time employee. A lot of small business owners don't realize this and get themselves in trouble.

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Yuki Ito

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What's the penalty for not registering when you're supposed to?

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Ethan Taylor

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It varies but can include back taxes, interest, and penalties. Plus if employees file for unemployment and the employer isn't registered, Washington ESD will definitely investigate and the employer will have to sort it out retroactively.

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Carmen Lopez

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I had this exact problem! My startup employer thought they were too small to worry about UI taxes. When I got laid off and tried to file, my claim got stuck in adjudication for weeks while they investigated. I finally got help through Claimyr to talk to someone who could explain what was happening with my claim status.

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Omar Fawaz

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How did Claimyr help exactly? I keep seeing it mentioned but not sure what it actually does.

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Carmen Lopez

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They help you get through to an actual Washington ESD representative on the phone. Instead of calling hundreds of times and getting busy signals or disconnected, they handle the calling and connect you when someone's available. Saved me so much time and frustration.

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Andre Dupont

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One thing to watch out for - some employers will claim their workers are exempt when they're not. Like claiming someone is an independent contractor when they're really an employee. Washington ESD has pretty clear tests for this stuff and they investigate when there are questions.

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QuantumQuasar

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What are the main things they look at to determine if someone should be classified as an employee vs contractor?

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Andre Dupont

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Control over how the work is done, whether you use your own tools/equipment, if you can work for other companies, how you're paid, whether the work is integral to their business. If the employer controls most of these factors, you're probably an employee.

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Bottom line - if you worked for a company as a regular employee, got W-2s, and they had payroll, they almost certainly should have been paying UI taxes. Don't let their mistake prevent you from getting the benefits you earned. Push Washington ESD to investigate if necessary.

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Omar Fawaz

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Thanks everyone, this has been really helpful. I feel more confident now about pushing for my benefits and knowing what to expect.

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Jamal Wilson

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Good luck! Don't give up - you deserve those benefits if you earned them.

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Mei Lin

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Also worth mentioning that Washington state has been cracking down on employers who don't properly classify workers or pay their taxes. They've gotten better at cross-referencing data and catching companies that aren't compliant. So your situation might not be as unusual as you think.

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Yeah I've seen more of these cases lately. Seems like Washington ESD is getting more aggressive about enforcement.

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Amara Nnamani

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Good! Too many employers try to skimp on their responsibilities and then workers suffer when they need benefits.

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If anyone else is dealing with this, definitely keep trying to reach Washington ESD even if it takes multiple attempts. Your benefits shouldn't be held up because your employer didn't do their job properly. There are ways to establish your eligibility even when employers aren't compliant.

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NebulaNinja

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Agree, but sometimes it takes forever to get through on the phone. That's where services like Claimyr can really help speed things up.

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Omar Fawaz

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I'm definitely going to try that since I haven't had any luck with the regular phone lines. Thanks for all the advice everyone!

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Another thing to keep in mind - even if your employer wasn't properly registered or paying UI taxes, Washington ESD can still establish your wage credits based on your actual earnings. You might need to provide extra documentation like bank deposits from paychecks, but they have procedures for these situations. I've seen cases where workers got their full benefits even when the employer was completely non-compliant. The key is being persistent and having all your paperwork ready when you finally get through to someone who can help.

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