Do employees pay into unemployment benefits in Washington state?

Your coworker is actually correct! In Washington state, employees do NOT pay into the unemployment insurance system. Only employers pay unemployment taxes to fund the system. This is different from Social Security and Medicare where both you and your employer contribute. Washington ESD gets its funding entirely from employer contributions.

Actually only 3 states work this way - Washington, Alaska, and New Jersey where employees don't pay unemployment taxes. Most other states take a small percentage from your paycheck. But here in WA, it's 100% employer-funded through their quarterly tax payments to Washington ESD.

Wait, if employers are paying all the unemployment costs, doesn't that make them less likely to hire people? Seems like it would hurt job creation.

I had to call Washington ESD about this exact question last year and spent HOURS on hold. If you need to reach them about unemployment taxes or anything else, I found this service called Claimyr (claimyr.com) that actually gets you through to a real person. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.

The employer tax rate varies by industry too. Construction and restaurants typically pay higher rates because they have more seasonal layoffs. Tech companies usually pay the minimum rate.

i never knew this either lol thought everyone paid unemployment taxes like social security

One thing to keep in mind - even though you don't pay into it directly, you still need to meet the work and wage requirements to qualify for benefits. Washington ESD looks at your earnings over the past 18 months to determine eligibility and benefit amounts.

The system works pretty well honestly. When I got laid off from Boeing in 2023, I was able to start collecting benefits right away without worrying about whether I'd paid enough into the system. Washington ESD processed my claim in about 2 weeks.

For anyone curious about the exact tax rates employers pay, Washington ESD publishes them on their website. The rates range from about 0.27% to 6.2% of wages depending on the employer's experience rating.

Just to add - this employer-only funding model is why Washington has some of the most generous unemployment benefits in the country. The state can afford higher benefit amounts since they're not splitting the cost with employees.

If you ever need to verify your wage credits or check your eligibility, you can do that through your SecureAccess Washington account on the Washington ESD website. It shows all the wages that employers reported for you.

Another thing people don't realize - if you work for multiple employers, all their wage reports get combined to determine your eligibility. So even part-time and gig work can count toward meeting the requirements.

I tried calling Washington ESD customer service about wage reporting issues and could never get through during normal business hours. Finally used Claimyr to get connected and they sorted out my problem in one call. Sometimes you just need to talk to a real person.

The no-employee-contribution model also means you don't have to worry about paying unemployment taxes if you're self-employed, unless you specifically opt into the system. Most contractors and freelancers aren't covered.

This whole thread has been super helpful! I had no idea how the funding worked. Glad to know my paycheck isn't getting dinged for unemployment taxes on top of everything else.

One last thing - even though you don't pay into it, you still have responsibilities if you collect benefits. You have to file weekly claims, do job searches, and report any work or income. Washington ESD takes those requirements seriously.

For anyone still confused about this, the key point is that Washington's unemployment insurance is entirely employer-funded through payroll taxes. Employees contribute nothing directly but earn eligibility through covered employment. It's actually a pretty good deal for workers.

Thanks everyone for the detailed explanations! This clears up a lot of confusion I had about how unemployment works here. Now I understand why there's no deduction on my paystub.

This is really helpful information! I'm new to Washington state too and was wondering about this exact thing. It's actually pretty nice that we don't have to pay unemployment taxes like in other states. Does anyone know if Washington also has any unique rules about collecting benefits compared to other states? Like are there different waiting periods or anything?