Do companies have to pay for unemployment benefits in Washington ESD system?
I'm trying to understand how the unemployment system actually works here in Washington. When I file for UI benefits through Washington ESD, does my former employer have to pay for those benefits directly? Or is it coming from some general fund? My friend said her company's insurance rates went up after she filed for unemployment, but I'm not sure if that's actually how it works. Can someone explain how companies are involved in funding unemployment benefits?
61 comments


Hannah White
Companies in Washington pay unemployment insurance taxes to fund the system. It's not like they write a check directly for your specific claim, but they do contribute to the overall fund that pays out benefits. The tax rate can vary based on the company's history of layoffs.
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Nick Kravitz
•So they're basically paying into a pool that everyone draws from? That makes more sense than what I was thinking.
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Michael Green
•exactly, and companies with more claims against them typically pay higher rates
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Mateo Silva
Your employer pays quarterly unemployment insurance premiums to Washington ESD. The rate depends on their 'experience rating' which goes up if they have a lot of former employees filing claims. So yes, firing people or having layoffs does cost them more money over time.
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Nick Kravitz
•Interesting! So there is some incentive for companies to avoid layoffs beyond just losing good workers.
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Victoria Jones
•That's why some companies fight unemployment claims so hard - they're trying to keep their rates down
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Cameron Black
•wait companies can fight claims?? how does that work
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Jessica Nguyen
If you're having trouble getting through to Washington ESD to understand your claim details, I found this service called Claimyr that helps people contact ESD agents. They have a website at claimyr.com and there's a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Really helped me when I couldn't get answers about my adjudication status.
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Isaiah Thompson
•How much does something like that cost? Seems like we shouldn't have to pay extra just to talk to ESD.
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Jessica Nguyen
•I totally get that frustration, but honestly after spending weeks trying to get through on my own, it was worth it to finally talk to someone who could explain my situation.
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Victoria Jones
Companies can contest unemployment claims if they think the employee was fired for misconduct or quit voluntarily. That's when you get into adjudication and might need to appeal. The employer has to provide documentation to Washington ESD explaining why they think you shouldn't get benefits.
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Nick Kravitz
•What counts as misconduct? Like if you're late a few times or make mistakes?
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Victoria Jones
•It has to be pretty serious - willful violations of company policy, theft, violence, that kind of thing. Just poor performance usually doesn't qualify as misconduct.
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Cameron Black
this is all so confusing why cant they just make it simple
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Mateo Silva
•The unemployment system has been around for decades and keeps getting more complex with new rules and requirements. It's definitely not user-friendly.
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Hannah White
•The basic idea is simple though - companies pay in, workers who lose jobs through no fault of their own get temporary benefits while job searching.
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Michael Green
I used to work in HR and can confirm that companies definitely pay attention to their unemployment costs. We had to track our 'experience rating' and it was part of budget planning. Higher turnover = higher UI taxes.
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Nick Kravitz
•That's really helpful context! Do you know if the rates vary a lot between industries?
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Michael Green
•Yes, industries with seasonal work or high turnover (like construction or hospitality) typically have higher base rates
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Ruby Garcia
•makes sense why restaurants always seem to fight claims so hard
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Isaiah Thompson
I'm going through adjudication right now because my former employer is claiming I quit when I was actually laid off due to budget cuts. It's been 6 weeks and I still haven't heard anything from Washington ESD. This whole system is broken.
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Jessica Nguyen
•That's exactly the kind of situation where Claimyr helped me. I was stuck in adjudication for weeks and couldn't get anyone at ESD to explain what was happening or what I needed to do.
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Isaiah Thompson
•Did they actually help you get through to someone? I've called hundreds of times and either get busy signals or get disconnected.
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Jessica Nguyen
•Yeah, they got me connected to an actual adjudication specialist who walked me through my case. Finally got my claim approved after that conversation.
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Ruby Garcia
my company told me they would contest my claim if i filed even though they laid me off is that legal??
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Victoria Jones
•If you were legitimately laid off due to lack of work, they can't successfully contest it. But they might try anyway to discourage you from filing. You should definitely file if you qualify.
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Hannah White
•Document everything about your layoff - emails, notices, anything showing it was due to business reasons and not your performance.
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Mateo Silva
The Washington State Employment Security Department has detailed information about employer responsibilities on their website. Employers pay different rates based on their industry classification and claims history. New employers start at a standard rate until they build up experience data.
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Nick Kravitz
•Is there a way to look up what rate your employer pays? Just curious how much my claim might affect them.
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Mateo Silva
•Individual employer rate information isn't public, but you can find general rate schedules on the ESD website under employer resources.
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Alexander Evans
I work for a small business and our owner is always complaining about unemployment taxes. Says it's one of his biggest expenses after payroll. Makes me worried about job security honestly.
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Michael Green
•Small businesses do feel the impact more because they have fewer employees to spread the costs across. But it's a required cost of doing business.
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Hannah White
•The taxes are calculated as a percentage of wages up to a certain limit, so it's predictable. Sounds like your boss might be exaggerating or has had a lot of turnover.
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Evelyn Martinez
Can someone explain the difference between being laid off and being fired for misconduct? My employer said I was terminated for poor performance but I think it was really about budget cuts.
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Victoria Jones
•Poor performance alone usually doesn't disqualify you from unemployment unless it rises to the level of willful misconduct. Budget-related terminations should qualify you for benefits.
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Evelyn Martinez
•How do I prove it was really about budget cuts if they're claiming performance issues?
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Mateo Silva
•Look for evidence like company-wide layoffs, financial difficulties, reduced hours across departments, or communications about cost-cutting measures.
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Benjamin Carter
this thread is really helpful im dealing with similar issues and had no idea companies paid into the system like this
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Nick Kravitz
•Right? I learned a lot too. The whole system makes more sense when you understand how it's funded.
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Cameron Black
so if my company contests my claim does that mean they dont have to pay anything?
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Hannah White
•No, they still pay their regular unemployment insurance taxes regardless. Contesting is about whether YOU get benefits, not whether THEY pay taxes.
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Cameron Black
•oh ok that makes sense i was confused about that
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Maya Lewis
I've been through the contest process twice with different employers. Both times Washington ESD sided with me because the employers couldn't prove misconduct. Don't let them intimidate you into not filing if you legitimately qualify.
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Nick Kravitz
•That's encouraging! How long did the contest process take?
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Maya Lewis
•First time was about 8 weeks, second time only 4 weeks. It really depends on how backed up the adjudication department is.
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Isaac Wright
For anyone stuck in adjudication hell, I used Claimyr last month and finally got through to someone at ESD who could review my case. Worth checking out their demo at https://youtu.be/7DieNd3C7zQ if you're tired of calling and getting nowhere.
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Isaiah Thompson
•I'm seriously considering this. Six weeks of calling every day and getting disconnected is driving me crazy.
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Isaac Wright
•I was in the same boat. The specialist they connected me with actually looked at my file while I was on the phone and explained exactly what was holding up my claim.
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Lucy Taylor
employers also have to pay federal unemployment tax FUTA in addition to state unemployment taxes so its actually more expensive for them than just the washington esd part
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Mateo Silva
•Good point! FUTA is a separate federal requirement. Employers pay both state and federal unemployment taxes for each employee.
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Connor Murphy
My understanding is that companies with good track records (low turnover, few claims) get lower rates as a reward for being stable employers. Is that right?
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Michael Green
•Exactly! It's called experience rating. Companies that rarely have unemployment claims pay lower rates than those with high turnover.
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Hannah White
•It's meant to incentivize companies to maintain stable employment and only lay people off when absolutely necessary.
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KhalilStar
i had no idea any of this was happening behind the scenes when i filed for unemployment last year thought it just came from government funds
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Nick Kravitz
•Same here! This thread has been really educational about how the whole system actually works.
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Amelia Dietrich
The key thing to remember is that unemployment insurance is exactly that - insurance. Companies pay premiums, and when employees need benefits, they're paid from that insurance fund. Just like any other type of insurance.
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Nick Kravitz
•That's a great way to think about it. Makes the whole system much clearer when you frame it as insurance rather than just government benefits.
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Kaiya Rivera
•And like any insurance, if you have more claims, your premiums go up. Pretty straightforward business model.
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Katherine Ziminski
Thanks everyone for all the explanations! This has been super helpful in understanding how unemployment funding actually works. I feel much more informed about the process now.
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Hannah White
•Glad we could help! The unemployment system can be confusing but it's important to understand your rights and how it all works.
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Jessica Nguyen
•And remember, if you ever need to actually talk to someone at Washington ESD about your specific situation, there are resources like Claimyr that can help you get through when the regular phone lines are jammed.
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