Do companies pay unemployment benefits to Washington ESD when employees get laid off?
I got laid off from my manufacturing job last week and I'm filing for unemployment with Washington ESD. My coworker said that our company has to pay for my unemployment benefits directly, but I thought it came from taxes or something? I'm confused about how this works. Does my former employer actually pay Washington ESD for my weekly claims? Just want to understand the system better since I've never been on unemployment before.
61 comments


NebulaKnight
Yes, employers do pay into the unemployment system! They pay unemployment insurance taxes to Washington State based on their payroll and their experience rating. It's not coming directly out of their pocket for your specific claim, but they've been paying into the system all along.
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Dylan Wright
•That makes sense, so it's like insurance they've been paying into. Thanks for clarifying!
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Sofia Ramirez
•wait so if i file for unemployment does that hurt my old company somehow?
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Dmitry Popov
To expand on that - employers in Washington pay unemployment insurance (UI) taxes quarterly to Washington ESD. The rate they pay depends on their 'experience rating' which is basically how many former employees have filed claims. So yes, if you file and collect benefits, it can eventually affect their tax rate.
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Dylan Wright
•Interesting, so companies with more layoffs pay higher rates? That seems fair.
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Ava Rodriguez
•Exactly! It incentivizes employers to keep people employed rather than constantly laying people off.
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Miguel Ortiz
•My company fought my unemployment claim and I couldn't figure out why until I learned about this experience rating thing. Makes total sense now.
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Zainab Khalil
I've been trying to get through to Washington ESD for weeks to ask about my claim status and it's impossible! The phone lines are always busy and when I do get through I get disconnected. How is anyone supposed to get answers about their unemployment?
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NebulaKnight
•I had the same problem until I found this service called Claimyr that calls Washington ESD for you. Check out claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. They basically keep calling until they get through to an agent.
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Zainab Khalil
•Wait, that sounds too good to be true. Does it actually work?
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NebulaKnight
•Yeah it really does! I was skeptical too but I got connected to a Washington ESD rep in like 20 minutes instead of spending hours on hold.
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QuantumQuest
companies hate paying unemployment that's why they fight every claim even when they know they're wrong
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Dmitry Popov
•Not all companies fight legitimate claims. Many understand it's part of doing business. But you're right that some do contest claims to keep their experience rating low.
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Connor Murphy
•My old boss told me straight up he was going to contest my claim even though he laid me off due to lack of work. Some employers are just vindictive.
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Sofia Ramirez
so if i quit my job can i still get unemployment or does the company not have to pay then
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Dmitry Popov
•Generally if you quit voluntarily you won't qualify for unemployment benefits unless you had good cause like unsafe working conditions or harassment. The employer's tax situation doesn't change based on why you left.
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Sofia Ramirez
•ok good to know thanks
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Miguel Ortiz
When I got laid off my HR person actually explained this to me. She said the company pays into a state fund and then Washington ESD pays out benefits from that fund. It's not like they write a check every time someone files a claim, but their tax rate can go up if they have a lot of claims.
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Dylan Wright
•That's helpful context. Sounds like your HR person was pretty transparent about it.
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Yara Haddad
•Wish more companies would explain this stuff to employees. Most people have no idea how unemployment works until they need it.
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Ava Rodriguez
The Washington ESD website has a whole section for employers about UI taxes if you want to see the actual rates and how they're calculated. It's pretty complex but basically new employers pay a standard rate and then it adjusts based on their claim history.
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Dylan Wright
•I'll check that out, thanks for the tip!
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Keisha Robinson
•Yeah it's interesting to see it from the employer side. My company's HR showed me our rate and it was way higher than I expected.
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Paolo Conti
Been on unemployment 3 times in the last 10 years due to company closures and layoffs. Each time I felt bad thinking my old company was paying for it directly but now I understand it's more like insurance they've been paying into all along.
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Dmitry Popov
•Exactly right. You shouldn't feel bad about collecting benefits you're entitled to, especially from layoffs that weren't your fault.
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Amina Sow
•Same here, I used to feel guilty until I realized I'd been paying into this system through my work too.
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GalaxyGazer
My company contested my unemployment claim even though they laid me off! I had to appeal and everything. Turns out they were trying to avoid the hit to their experience rating.
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Dmitry Popov
•That's frustrating but not uncommon. Did you win your appeal?
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GalaxyGazer
•Yeah eventually but it delayed my benefits for weeks. Such a hassle when you're already stressed about being unemployed.
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Oliver Wagner
•This is exactly why I used Claimyr when I had issues with my claim. Being able to actually talk to someone at Washington ESD instead of waiting weeks for a response made all the difference.
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Natasha Kuznetsova
wait so unemployment isn't paid by the government? I thought it was like welfare or something
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Dmitry Popov
•It's administered by the government (Washington ESD) but funded by employers through unemployment insurance taxes. It's an insurance system, not welfare.
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Natasha Kuznetsova
•ohhh that makes more sense now
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Javier Mendoza
The way it works is employers pay different rates depending on their industry and claim history. Construction companies usually pay higher rates than office jobs because there's more seasonal layoffs.
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Dylan Wright
•That's interesting, I work in manufacturing so I wonder what rate my company pays.
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Emma Thompson
•You can actually look up employer tax rates on the Washington ESD website if you know where to look.
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Malik Davis
been trying to call washington esd for 2 weeks straight about my pending claim and can never get through
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Oliver Wagner
•Have you tried using Claimyr? I mentioned it earlier in this thread but seriously it's a game changer for getting through to Washington ESD. Way better than sitting on hold for hours.
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Malik Davis
•never heard of it but I'll check it out, thanks
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Isabella Santos
Small employers (under 4 employees) don't have to pay unemployment insurance in Washington, but most regular companies do. It's calculated as a percentage of each employee's wages up to a certain limit.
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Dylan Wright
•Good to know! My company definitely has way more than 4 employees so they've been paying in.
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StarStrider
•I think the wage limit is around $60,000 or so per employee per year, but don't quote me on that exact number.
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Ravi Gupta
Companies also pay into other programs like paid family leave through Washington ESD. It's all part of their payroll taxes.
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Dylan Wright
•Right, I remember seeing those deductions on my paystubs. Makes sense it's all connected.
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Freya Pedersen
•Yeah the paid family leave program is newer but it works similarly to unemployment insurance.
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Omar Hassan
This whole thread has been super helpful! I had no idea how the unemployment system actually worked. Glad I asked.
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Dmitry Popov
•Happy to help! Understanding how the system works can make the whole process less stressful when you're dealing with a job loss.
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Chloe Anderson
•Totally agree. Knowledge is power especially when you're navigating unemployment benefits for the first time.
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Diego Vargas
One thing to remember is that even though employers pay into the system, you still earned those benefits through your work. Don't feel guilty about collecting what you're entitled to.
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Dylan Wright
•That's a good point. I was feeling a bit bad about filing but you're right, I worked and contributed to this system.
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CosmicCruiser
•Exactly! It's insurance that was paid for on your behalf. Use it when you need it.
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Anastasia Fedorov
The experience rating system is actually pretty fair when you think about it. Companies that create more unemployment claims through layoffs should pay more into the system.
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Dmitry Popov
•Agreed. It creates an incentive for employers to maintain stable employment when possible.
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Sean Doyle
•Though sometimes layoffs are unavoidable due to economic conditions or industry changes.
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Anastasia Fedorov
•True, but the system accounts for that by averaging rates over several years.
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Zara Rashid
If anyone needs help getting through to Washington ESD about their claims, definitely check out that Claimyr service people mentioned. I used it last month and finally got answers about my adjudication issue.
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Dylan Wright
•Good to know there are options when the phone lines are impossible. I'll keep that in mind if I run into issues.
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Luca Romano
•The video demo they have really shows how it works. Pretty clever solution to a frustrating problem.
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Nia Jackson
Thanks everyone for all the detailed explanations! This thread really cleared up my confusion about how unemployment funding works in Washington.
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Dmitry Popov
•You're welcome! Good luck with your claim and hope you find new employment soon.
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Dylan Wright
•Thanks! Feeling much more informed about the whole process now.
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