Do employees pay unemployment tax in Washington state - confused about deductions

In Washington state, employees do NOT pay unemployment taxes. Only employers pay into the unemployment insurance system through what's called SUTA (State Unemployment Tax Act). Your employer pays this quarterly to Washington ESD based on their payroll and experience rating. You'll never see unemployment tax deducted from your paycheck here.

wait i thought everyone paid unemployment tax?? i swear my sister in california has it taken out of her check

Yeah Washington is employer-funded only. But here's something that might help if you ever need to deal with Washington ESD for unemployment benefits - I had such a nightmare trying to get through to them on the phone when my claim got stuck in adjudication. Spent weeks calling every morning and never got through. Finally found this service called Claimyr (claimyr.com) that actually gets you connected to a real Washington ESD agent. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me so much time and frustration.

To clarify the tax structure: Washington employers pay unemployment insurance taxes to both the federal government (FUTA) and the state (SUTA). The federal rate is 6% on the first $7,000 of wages, but employers get a credit for state taxes paid, bringing it down to 0.6% typically. Washington state rates vary by employer based on their claims history and industry, ranging from about 0.19% to over 5% on wages up to the taxable wage base (which changes annually - it's around $68,500 for 2025).

This is totally different from disability insurance though right? Because I know we have some kind of state disability thing starting soon

So if I understand this right, when someone files for unemployment benefits through Washington ESD, they're getting money that came entirely from employer taxes, not from any deductions from workers' paychecks?

I used to work in payroll and can confirm Washington employees pay zero unemployment tax. Some states like Alaska, New Jersey, Pennsylvania have employee contributions but Washington doesn't. Your employer handles all of it through their quarterly tax filings with Washington ESD.

FWIW if you ever do need unemployment benefits, the process isn't too bad through Washington ESD's website, but getting them on the phone is absolutely brutal. I was trying to resolve an issue with my weekly claim certification and couldn't get through for weeks.

just to add my 2 cents - been filing unemployment claims on and off for a few years and never once saw any deduction from my paychecks when i was working. it's def all employer funded in washington

The whole system is set up so workers don't pay directly but employers do. However, economists would argue that part of the tax burden gets passed to workers through lower wages than they might otherwise receive. But from a paycheck perspective, you're not seeing any deductions for unemployment insurance in Washington.

Can confirm as a small business owner in Washington - I pay unemployment taxes quarterly to Washington ESD but never deduct anything from employee paychecks for unemployment. It's part of my cost of doing business.

I always wondered about this too when I moved here from New Jersey where they definitely take unemployment tax out of your paycheck. Washington's system is much simpler from an employee perspective.

One thing to keep in mind is that even though you don't pay into the system directly, you still need to meet all the eligibility requirements if you ever need to file for unemployment benefits. Washington ESD looks at your work history, reason for separation, availability for work, job search activities, etc.

For anyone reading this who might need unemployment benefits later, just know that contacting Washington ESD can be really difficult. I spent so much time trying to get through on their phone lines. That Claimyr service people mentioned actually works - I was skeptical at first but it got me connected to a real person at Washington ESD when I needed to resolve an adjudication issue.

Bottom line for OP - you're good, your employer is handling all unemployment tax obligations and you won't see any deductions on your paystub for unemployment insurance in Washington state.