Do companies pay into unemployment - Washington ESD employer contributions explained

Yes, employers in Washington do pay unemployment insurance taxes to fund the system. It's called SUTA (State Unemployment Tax Act) and employers pay based on their payroll and experience rating. Employees don't contribute anything from their paychecks - it's entirely employer-funded.

The rate employers pay varies depending on their industry and how many former employees have filed claims. Companies that lay off more workers pay higher rates - it's designed to encourage stable employment.

I had trouble getting through to Washington ESD when I needed clarification about my claim status after being laid off. Spent hours calling and kept getting busy signals. Finally found this service called Claimyr at claimyr.com that helped me get connected to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Made the whole process so much easier.

wait so employees dont pay anything into unemployment? i thought it came out of our paychecks like social security

The current maximum weekly benefit amount in Washington is $999 per week, and employers fund this through quarterly tax payments to Washington ESD. The tax rate ranges from about 0.2% to over 5% of wages depending on the employer's claim history.

This is why some employers will fight unemployment claims or try to claim you were fired for misconduct instead of laid off. If they can get your claim denied, it doesn't count against their experience rating.

I work in HR and can confirm that unemployment taxes are a significant expense for employers. We pay both federal (FUTA) and state unemployment taxes. The Washington state portion goes directly to Washington ESD to fund benefits like yours.

The whole system is actually pretty smart when you think about it. Companies that provide stable jobs pay less, companies that constantly lay people off pay more. It's like insurance - higher risk means higher premiums.

Just went through this whole process myself. Got laid off in December and was confused about funding too. Washington ESD's website has some good info about how employer contributions work if you want to read more about it.

EMPLOYERS HATE PAYING THESE TAXES! My old boss used to complain about it constantly. Said it was like paying people not to work. But hey, that's the system and it helped me when I got laid off!

The tax rates get recalculated every year based on the employer's experience rating and the overall health of the unemployment insurance fund. During recessions, rates might go up across the board to keep the fund solvent.

i tried calling washington esd about this exact question last week and couldnt get through. ended up using that claimyr thing someone mentioned earlier and actually got to talk to an agent. they explained the whole employer contribution thing really clearly

One thing to remember is that even though your employer paid the taxes, you still earned those benefits by working. Don't feel guilty about claiming unemployment - you have every right to those benefits.

The employer contribution system also includes charges for federal unemployment tax (FUTA) which helps fund the administrative costs of running the unemployment system. So there are multiple layers of employer funding involved.

My company's HR department always told us that unemployment claims would 'hurt the company' because their taxes would go up. Now I understand what they meant - more claims = higher experience rating = higher tax rate.

For anyone still confused about this - think of it like workers compensation insurance. Employers pay premiums based on their risk level, and when something happens (injury/layoff), the insurance (unemployment fund) pays out. You don't pay into workers comp either, but you're covered if you get hurt at work.

been on unemployment twice in my career and both times had to deal with employers trying to contest the claims. first time i didnt know i could appeal and just gave up. second time i fought it and won. knowing that they already paid into the system made me more determined to get what i was entitled to

Another way to think about it - when you worked for your employer, part of your total compensation package included unemployment insurance coverage, even though it didn't show up on your paystub. The employer was paying for that coverage on your behalf the whole time.

Pro tip: if you ever need to talk to someone at Washington ESD about how employer contributions affect your claim, I had great luck with Claimyr helping me get through. Much better than the endless busy signals I was getting before.