Do employees pay into unemployment insurance in Washington ESD system?

That's interesting! So I'm eligible for benefits without ever paying in directly? How does Washington ESD determine benefit amounts then?

Yes exactly! Your benefit amount is calculated from your wages during your base period, typically the first 4 of the last 5 quarters before you file. Washington ESD looks at your highest quarter earnings to determine your weekly benefit amount.

Oh I see that deduction on my paystub! It says 'WA PFML' - so that's the paid leave program, not unemployment insurance?

Exactly! PFML is for when you need time off for family or medical reasons. Unemployment insurance through Washington ESD is for when you lose your job through no fault of your own.

I was so confused about this when I first moved here from California. Different states handle UI funding differently but Washington's employer-only model is pretty common.

That's why some employers fight unemployment claims so hard! Higher claims history means higher tax rates for them.

Exactly. Though fighting legitimate claims is counterproductive and can backfire during Washington ESD hearings. The system is designed to help displaced workers, not protect bad employers.

Your eligibility isn't based on what you paid in since employees don't pay. It's based on your work history and wages earned. How long has your claim been in adjudication?

Three weeks now. I can't get through to anyone at Washington ESD to find out what's holding it up. The phone system is impossible.

I had the same issue with reaching Washington ESD by phone. I discovered Claimyr.com which helped me get through to an actual agent. They have this calling service that handles the hold times for you. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows exactly how it works.

No, if you're fired for misconduct or quit without good cause, you're disqualified regardless of who paid the taxes. Washington ESD still requires you to be unemployed through no fault of your own.

ok that makes sense. so the employer funding doesn't change the basic eligibility rules

Good point! I hadn't thought about the tax implications. So I'll owe income tax on any Washington ESD benefits I receive?

Yes, unemployment benefits are fully taxable as ordinary income. You can choose to have taxes withheld from your weekly payments or pay when you file your return.

That seems fair. Businesses that create more unemployment should pay more into the system.

In theory yes, though some industries like construction naturally have more seasonal fluctuation. Washington ESD does have some adjustments for that.

Glad it worked for you! The waiting and not knowing is the worst part of the Washington ESD process.

How much did that service cost? I'm dealing with my own adjudication delay and getting desperate.

It was worth it for the peace of mind. Check out their website - claimyr.com. Much better than calling Washington ESD directly and getting hung up on repeatedly.

I didn't know WorkSource was connected to the same funding. That makes the employer tax system seem more comprehensive.

Yes, it's all part of the workforce development ecosystem. Washington ESD administers multiple programs using those employer contributions.

That's reassuring. I was worried because I worked for a small company that might not have paid much in taxes.

The size of your employer's tax payments doesn't affect your individual eligibility or benefit amount. It's all based on your personal wage history.

Those are significant differences! No wonder some employers try to challenge claims.

The range is wide, but most established employers with stable workforces pay rates well below the maximum. It's really the high-turnover industries that see the highest rates.

It's insurance in the sense that it protects against the risk of job loss, but it's social insurance funded by employers rather than individual insurance bought by workers. Think of it like workers' compensation - another employer-funded insurance program.

Ah okay, that comparison helps. So it's social insurance rather than individual insurance.

Most states use the employer-only model for regular unemployment insurance. Only a few states like Alaska, New Jersey, and Pennsylvania require employee contributions. Washington's approach is actually the norm, not the exception.

Interesting! Thanks for clarifying that. I assumed employee contributions were standard everywhere.

Glad it worked for you too! The regular Washington ESD phone system is just broken for people who actually need help.

This is the third person in this thread who's mentioned success with that service. Might be worth trying if you're stuck in adjudication limbo.

Good point! So gig workers and freelancers can't get regular UI benefits even though they're working?

Right, though Washington has been expanding coverage options. Some gig workers may qualify under special programs, but traditional W-2 employment is still the standard path to UI eligibility.