Do companies pay for unemployment benefits in Washington state?

Your employer doesn't pay directly for your specific benefits, but they do contribute to the unemployment insurance system through payroll taxes. It's called SUTA (State Unemployment Tax Act) and all employers pay into this fund based on their payroll and claim history.

Companies with higher unemployment claim rates do pay higher tax rates though. So if a lot of people file claims against one employer, their rates can go up. But that doesn't mean they can stop you from filing or that you shouldn't file if you're eligible.

I had the same worry when I filed! My boss was already mad about the whole situation when I got laid off. But honestly, if you qualify for benefits you should definitely file. It's not like you're taking money directly from their pocket.

This is actually a really common misconception. The employer pays unemployment insurance taxes whether anyone files claims or not - it's required by law. When you file for benefits, Washington ESD pays you from the unemployment insurance fund that all employers contribute to. I had trouble getting through to Washington ESD to ask about this exact question last month, but I found this site called claimyr.com that helped me get connected to an actual agent who explained it all. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

wait so my company is paying for my unemployment even tho they fired me?? that seems backwards

The way I understand it, employers pay a percentage of their payroll as unemployment tax to both the state and federal government. The rate they pay depends on their industry and their history of layoffs. Companies that lay people off frequently pay higher rates.

I work in HR and can confirm this is correct. We pay quarterly unemployment taxes to Washington state based on our payroll and our experience rating. The rate can range from like 0.2% to over 5% of wages depending on the company's claim history. But individual employees don't need to worry about this - if you're eligible for benefits, file for them.

This whole system is so confusing. I just want to know if I can file without my boss getting mad at me lol

The employer does get notified when you file a claim though. They have a chance to contest it if they think you don't qualify (like if they fired you for misconduct). But they can't stop you from filing initially.

I think people get confused about this because some states do things differently. In Washington, it's definitely a pooled system where all employers contribute and benefits come from that general fund.

I was laid off from a small company last year and was worried about the same thing. My boss actually told me to file for unemployment because he knew they wouldn't be calling me back anytime soon. Some employers understand it's just part of doing business.

The bottom line is don't let worry about your employer stop you from filing. You worked and earned those benefits. The employer pays taxes regardless of whether you file or not.

Just to add one more thing - the unemployment tax that employers pay is separate from the income taxes that get withheld from your paycheck. So you as the employee never directly paid into the unemployment system (except through federal taxes), but your employer has been paying on your behalf the whole time you worked there.

If you need to talk to someone at Washington ESD about eligibility or have other questions, I used that Claimyr service someone mentioned earlier and it actually worked great. Saved me hours of trying to get through on the phone. The agents were able to explain all this stuff about employer contributions too.

One thing to keep in mind is that if you're worried about your relationship with your former employer, filing for unemployment is pretty normal and expected. Most employers deal with unemployment claims regularly and it's not personal.

Also remember that even if your employer's unemployment tax rate goes up because of claims, that's spread out over all their employees' wages. It's not like they're paying thousands of dollars because you specifically filed.

I think the key takeaway here is that unemployment insurance is exactly that - insurance. Employers pay premiums, and when qualifying events happen (like layoffs), benefits get paid out. It's not charity or a handout, it's a system you and your employer both contributed to.

Just wanted to mention that I also used Claimyr when I had questions about my claim status and it was super helpful. Much better than sitting on hold for hours or trying to get through to the regular Washington ESD lines.

The whole employer notification thing used to stress me out too, but my old boss never even mentioned it when I ran into him months later. I think most employers just deal with the paperwork and move on.

Great thread, learned a lot about how the funding actually works. I always assumed it came straight from the employer but the pooled system makes way more sense.