Do employees pay for unemployment insurance in Washington state?

You're correct - employees in Washington state don't pay into unemployment insurance. It's funded entirely by employers through payroll taxes. The Washington Employment Security Department (ESD) collects these taxes from employers based on their payroll and experience rating. As an employee, you're automatically covered as long as you meet the work history and wage requirements when you file a claim.

This is different from some other states though. I moved here from Pennsylvania where employees do pay a small unemployment tax. Washington is one of the states where it's 100% employer-funded. Your employer pays both the state unemployment tax and federal unemployment tax (FUTA) on your behalf.

I had trouble getting through to Washington ESD when I needed to ask about my employer's tax payments affecting my claim. Spent hours calling and kept getting disconnected. Finally used this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Really saved me time instead of calling all day.

The employer tax rate varies too. New employers pay a standard rate but it adjusts based on how many former employees file for unemployment benefits. Companies with higher turnover end up paying more into the system.

yeah my boss mentioned this when we had layoffs last year, said it would affect their unemployment tax rate going forward. felt bad that filing for benefits would cost the company more but i still needed to file obviously

I work in HR and can confirm this. We pay both state and federal unemployment taxes for all our employees. The Washington ESD sends us quarterly reports showing our tax rate and any adjustments. Employees never see this on their paystubs because it's not their responsibility.

This is why I always tell people not to feel guilty about filing for unemployment benefits. You didn't pay into it directly, but your employer did on your behalf as part of your compensation package. It's insurance that was purchased for you.

The only exception might be if you're self-employed or an independent contractor. Then you're not covered under regular unemployment insurance unless you specifically opt in to certain programs.

I wish more people understood this. I've had friends stress about 'taking money they didn't pay for' when filing unemployment claims. The system was literally designed this way - employer-funded, employee-benefited.

Just to add - this also means that even if you've only worked a short time at a job, you could still qualify for benefits if you meet the wage requirements from previous employers. Since it's not about what you personally contributed.

Had no idea about this when I first moved to Washington. Coming from a state where I paid unemployment tax, I was looking for it on my paystub and couldn't find it. Thought there was an error until my HR explained it.

For anyone who needs to verify their wage history or check if their employer is paying the right taxes, you can create an account on the Washington ESD website and view your employment records. Helpful when filing a claim later.

The Washington state system is actually pretty generous compared to other states, partly because employers fund it entirely. No employee contributions means the state can set benefit levels based on what works for unemployed workers rather than worrying about payroll deduction limits.

IMPORTANT: If you're ever laid off or lose your job, don't wait to file thinking you need to 'pay back' the system somehow. File immediately if you're eligible. Every week you wait is a week of benefits you can't get back.

One more thing - even though you don't pay the unemployment tax directly, it does affect the overall job market. Employers factor these costs into their hiring decisions and wage structures, so in a way, all workers share the cost indirectly.

Thanks for asking this question! I've been wondering the same thing but felt dumb asking. Now I know I'm not missing some deduction I should be seeing on my paycheck.

This thread has been super helpful! I moved here from Texas where we also don't pay employee unemployment taxes, but I wasn't sure if Washington was the same. It's reassuring to know that the system is designed to protect workers without adding another payroll deduction. Makes me feel better about the whole setup knowing that if something happens with my job, I won't have to worry about whether I "paid enough" into the system.