Do companies have to pay unemployment insurance - Washington ESD question

That's what I thought! So my benefits are coming from taxes my employer already paid, not from some general fund?

Exactly. Washington ESD collects these taxes from all employers throughout the year to fund unemployment benefits for workers who lose their jobs through no fault of their own.

This is correct. In Washington, employers pay into the unemployment insurance system quarterly. The tax rate depends on factors like industry type and how many former employees have filed claims.

Interesting! So if my company has laid off lots of people, they might be paying higher unemployment taxes?

Yes, that's how the experience rating system works. Companies that use the system more pay more into it.

Really? How does that work exactly? I've been trying to call Washington ESD for days.

They basically handle the calling for you and get you connected to an actual Washington ESD representative. Saved me hours of trying to get through on my own.

That sounds too good to be true. How much does something like that cost?

I was skeptical too but it actually worked. They focus on getting you connected rather than charging crazy fees.

Yes, even small employers have to pay unemployment insurance taxes in Washington. There are very few exceptions, mainly for certain types of family businesses or specific industries.

wow i didn't know that. my boss always complains about taxes but never mentioned this one specifically

So it's completely separate from other payroll taxes? That makes sense why I never noticed it on my paystubs.

Correct. Unemployment insurance is paid solely by employers, not employees. It's one of the few benefits that workers receive without directly paying into the system.

That's why when people complain about 'freeloaders' on unemployment, it's so frustrating. This money came from employers, not taxpayers directly.

Employers can contest claims because it affects their experience rating and future tax rates. More claims = higher taxes for them next year.

Oh that explains why my former manager seemed upset when I mentioned filing for unemployment. It's not just about the current claim.

Exactly. Even though they're required to pay into the system, employers have an incentive to keep their claims low to maintain lower tax rates.

Is this the same service someone mentioned earlier? I'm getting desperate trying to reach Washington ESD about my claim status.

Yes, same service. They specialize in helping people connect with Washington ESD representatives when the regular phone lines aren't working.

Unfortunately that's pretty common with Washington ESD. The system is overwhelmed and understaffed. Have you tried using one of those services that helps you get through to agents?

I hadn't heard of those before reading this thread. Might be worth looking into if it actually works.

I used Claimyr and it definitely helped me get answers faster than trying to call on my own. Sometimes you need that extra help to navigate the system.

It's not that simple. Employers pay into a pool administered by Washington ESD. They don't directly pay individual claims, but high claim rates do increase their future tax obligations.

I guess that makes more sense. Still seems like the system could work better for workers who need benefits.

How did you finally get it resolved? I'm worried about my claim getting stuck too.

I eventually got through to an agent who explained the issue and helped fix it. But it took forever to actually reach someone who could help.

That's exactly why services like Claimyr exist. They help you get to an actual person instead of being stuck in phone hell.

Thanks for the confirmation from someone who deals with this professionally! Do you know roughly what percentage employers pay?

The rates vary but it's typically between 0.2% to 6% of wages depending on the employer's experience rating and industry. New employers start at a standard rate.

6% seems like a lot! No wonder some employers don't like paying it.

They can contest claims if they believe you don't qualify, but they can't prevent you from applying or receiving benefits you're entitled to.

Good to know. The whole process has been stressful enough without worrying about that.

If only it was easier to actually access those benefits! The application process and phone system need serious improvement.

Agreed. The benefits are there but getting to them can be a challenge. That's why people end up using services to help them navigate the system.

No, employers don't get details about your benefit amounts. They may be notified that you filed a claim and can contest it, but your actual benefit information is confidential.

That's a relief. I was worried about privacy issues with my former employer.

Any tips for avoiding problems with the application? I want to make sure I don't mess anything up.

Be thorough and accurate with all your information. Keep records of everything. If you run into issues, don't hesitate to call Washington ESD or use one of those services that helps you get through.

Exactly! It creates an incentive for employers to maintain stable employment rather than constantly hiring and firing.

Right, though some layoffs are unavoidable due to economic conditions. At least the system provides support for affected workers.

You're entitled to these benefits if you qualify. Don't feel guilty about using a system that exists specifically to help workers in your situation.

That's exactly what I needed to hear. Sometimes the stigma around unemployment makes you feel like you're taking something you don't deserve.

Good point. It's not just about individual workers - unemployment insurance helps maintain consumer spending during economic downturns.

I hadn't thought about the broader economic impact. Makes the system seem even more important.

I'm definitely going to look into this. I've wasted so much time trying to get through on my own.

It's worth it just for the peace of mind. At least you know you'll actually talk to someone who can help with your claim.

This whole thread has been incredibly helpful. Thanks everyone for sharing your knowledge and experiences!