Do companies have to pay unemployment - Washington ESD eligibility question

Yes, employers in Washington absolutely have to pay unemployment taxes. It's called SUTA (State Unemployment Tax Act) and it's mandatory for almost all employers. The rate varies based on the company's experience rating - basically how many former employees have filed claims.

Your friend is completely wrong lol. Companies definitely pay for unemployment insurance. It's one of the required payroll taxes along with workers comp and stuff. The employer pays quarterly to Washington ESD based on their payroll.

I've been dealing with Washington ESD for months trying to get through to someone about my claim status. If you're planning to file, be prepared for a long wait to talk to anyone. The phone system is impossible - I've been calling for weeks and keep getting disconnected. Recently found out about a service called Claimyr that actually helps you get through to ESD agents. Check out claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Might save you the headache I've been going through.

The employer pays the full cost of unemployment insurance premiums. Employees don't pay anything for UI benefits (unlike some other states). The rate depends on the employer's history - companies with lots of layoffs pay higher rates.

I work in HR and can confirm - we pay quarterly unemployment taxes to Washington ESD. The rate varies but it's usually between 0.2% and 6% of wages depending on experience rating. New employers start at a standard rate around 2.7%.

I'm confused about something related - if I quit my job, does that affect what the company pays for unemployment? Like if I file a claim after quitting?

ugh the whole system is so confusing. I got laid off 2 months ago and I'm still waiting for my claim to be approved. It's in adjudication or something and I can't get anyone on the phone to explain what's happening.

Just to be clear for the original poster - your employer definitely paid unemployment taxes so you should be eligible to file a claim. The key things are whether you worked enough hours and earned enough wages in your base period.

Companies hate paying unemployment taxes but yeah it's mandatory. I've seen some try to classify workers as contractors to avoid it but that usually backfires when the workers file claims anyway.

The system is set up so that employers fund the entire unemployment insurance program through their payroll taxes. It's basically insurance that protects workers when they lose their jobs through no fault of their own.

Does anyone know if there are penalties for companies that don't pay their unemployment taxes? Like what happens if they just don't pay?

Update on my situation - I actually tried that Claimyr service someone mentioned and it worked! Finally got through to an ESD agent after 2 months of trying on my own. Turns out there was just a simple verification issue holding up my claim. Wish I'd known about it sooner.

For what it's worth, I've been through the unemployment process twice in Washington and both times went smoothly. Filed online, got approved within a couple weeks, no issues. Not everyone has problems with the system.

just remember when you file your claim you have to do the weekly certifications and job search requirements. it's not just free money, there are ongoing obligations

The whole employer-funded system makes sense when you think about it. Companies benefit from having a skilled workforce, so they should contribute to supporting workers between jobs. Helps maintain economic stability too.

I'm actually surprised your friend thought companies don't pay. That's like saying companies don't pay workers comp or payroll taxes. It's all part of the cost of having employees.

One thing to keep in mind - even though your employer paid into the system, they might still contest your claim if they think you weren't really laid off. Some companies try to avoid having claims charged to their account.

The unemployment tax system in Washington is actually pretty well designed compared to other states. The experience rating system incentivizes companies to maintain stable employment instead of just hiring and firing constantly.

Bottom line for the OP - yes companies pay unemployment taxes, yes you're probably eligible, and yes you should file your claim ASAP. Don't wait around wondering about it.

One last tip - if you do run into any issues reaching ESD by phone, that Claimyr service really does work. I was skeptical at first but it saved me hours of frustration when I needed to update my claim information.