Do businesses pay for unemployment benefits in Washington state?

So it's not like he writes a check for my specific claim amount? It's more like his insurance rates go up?

Exactly! It's like car insurance - if you have more claims, your rates go up at renewal time. Employers with lots of turnover pay higher UI tax rates.

do you know what the rates are? my small business is about to hire its first employee and I'm trying to budget for this

The rates vary but for 2025 I think new employers start around 2.7% of wages up to the wage base. You should check the current rate schedule on the Washington ESD employer portal though.

Never heard of that service but honestly anything that helps with ESD call volume sounds worth it. I've wasted so much time on hold with them.

Wait is this like a paid service to help you call ESD? How does that work exactly?

Yeah it basically handles the calling process for you so you don't have to sit on hold. They call you back when they get an agent. Saved me literally hours of waiting time.

That makes sense why he seemed so frustrated about the whole thing. I guess there's actually a financial incentive for employers to try to keep people employed.

exactly, and its also why some employers try to fight unemployment claims even when they're clearly valid. they're trying to protect their experience rating

That's partially true. If you quit without good cause, you typically won't qualify for unemployment benefits, so no claim would be filed against their experience rating. But if you quit for good cause (like unsafe working conditions), you can still get benefits.

They were probably trying to manipulate you into quitting. Even if you quit, if it's for qualifying reasons under Washington ESD rules, you can still get benefits and it still affects their rating.

Yes, Washington ESD sends the employer a notice when you file a claim. They have a chance to respond and provide information about why you're no longer employed. This is part of the determination process.

oh great so they definitely know. I was hoping to keep it private but I guess that makes sense they need to verify the employment info

Really? I thought everyone paid into unemployment insurance. That's actually pretty nice that it doesn't come out of our paychecks.

Yeah most people don't realize this. In Washington the employers pay the full cost of unemployment insurance. Some states make employees pay too but not here.

True, and if you were misclassified as a contractor when you were really an employee, you can still potentially file for benefits. Washington ESD will investigate the employment relationship.

this happened to me! took forever to sort out but I eventually got my benefits after ESD determined I was actually an employee not a contractor

That's really helpful context. So employers do have a financial reason to treat employees fairly, at least when it comes to terminations.

in theory yes but some employers still fire people unfairly and just eat the cost. depends on the business and how much they care about the extra taxes

Yes, employers can protest claims and provide documentation about misconduct or other disqualifying factors. Washington ESD will review the information from both sides before making a determination.

They can also appeal ESD decisions just like claimants can. The whole process can drag out for months if both sides keep appealing.

Exactly! It's an insurance system. All employers pay in, and benefits are paid out of that pool. But individual employers' tax rates are adjusted based on their claims history.

Thanks everyone, this really helped me understand how the system works. My ex-boss was right that firing me would cost him money, just not in the direct way I was thinking.

Same thing happened to me. Had to appeal their protest but eventually won. It's frustrating that they can hold up your benefits like that.

This is another situation where having help reaching ESD agents is really valuable. I used Claimyr again when I needed to check on an appeal status and it saved me hours of trying to get through on the phone.

Where can you find those rate schedules? I'm starting a business and need to know what to budget for.

Check the Washington ESD employer portal or look for the annual tax rate notice. They publish the rate tables every year usually around November for the following year.

Really? I didn't know they distinguished between different types of job loss. That actually makes sense though.

Yes, the experience rating system tries to account for circumstances beyond the employer's control. Natural disasters, economic downturns, etc. are weighted differently than high turnover due to poor management.

Perfect summary! This thread really helped me understand the whole system. Thanks everyone for explaining it so clearly.

glad this helped! unemployment insurance is one of those things that affects everyone but most people don't understand how it actually works behind the scenes