Do employers pay unemployment benefits in Washington - confused about who funds my claim

Your neighbor is partially right - employers do pay into the unemployment system, but not directly for your individual claim. In Washington, employers pay unemployment insurance taxes quarterly to fund the overall UI trust fund. The rate depends on their experience rating and industry. Your former employer won't get a bill specifically for your benefits.

I was so confused about this too when I got unemployment last year! Employers pay what's called SUTA taxes (State Unemployment Tax Act) to Washington ESD. It's like insurance - they pay premiums into a pool, and benefits come out of that pool. Your specific claim doesn't directly cost them money upfront.

The Washington Employment Security Department explains this on their website, but basically employers pay unemployment taxes based on their payroll and claim history. New employers pay a standard rate, but established companies get an 'experience rating' that can make their rate higher or lower depending on how many former employees file UI claims.

Had trouble getting through to Washington ESD to ask about this same question last month. If you need to talk to someone directly about your claim, I discovered this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Way better than sitting on hold for hours!

your employer pays unemployment taxes but NOT for your specific claim. think of it like car insurance - everyone pays premiums, claims come out of the pool

The funding comes from both employer taxes and federal funds. Employers pay into the UI trust fund through payroll taxes, and there's also federal funding that helps support the system. During busy periods, the feds can extend benefits using federal money too.

I manage payroll at a small business and can confirm we pay quarterly unemployment taxes to Washington state. The rate varies by industry and our claim history. When someone files for unemployment, we get notified but we don't pay their benefits directly. However, if we have a lot of claims, our tax rate goes up the following year.

My husband got laid off 6 months ago and his old company actually called him to explain they weren't fighting his unemployment claim since it was a legitimate layoff. I think they wanted to make sure he knew they weren't going to make it difficult for him.

The way I understand it, Washington ESD collects taxes from ALL employers to fund unemployment benefits. It's like a big insurance pool. Your employer has been paying into this system the whole time you worked there, so you've earned the right to draw from it when you need it.

Just went through this whole process myself. Your employer won't pay directly for your claim, but they do get notified when you file. They have a chance to provide information to Washington ESD about your separation (layoff, quit, fired, etc.). If they don't respond or if they confirm it was a layoff, your claim should process normally.

Been trying to get through to Washington ESD for weeks about my claim status. Finally used a service someone mentioned here called Claimyr and actually got to talk to a real person! They connected me directly to an ESD agent who cleared up my adjudication issue. Wish I'd known about it sooner.

EMPLOYERS PAY UNEMPLOYMENT TAXES BUT NOT YOUR SPECIFIC BENEFITS!!! I keep seeing this confusion everywhere. They pay into the system through payroll taxes, but your benefits come from the state's unemployment insurance trust fund. It's not like workers comp where they pay directly for each claim.

I used to do HR and had to deal with unemployment claims regularly. The employer gets a form from Washington ESD asking about the circumstances of your separation. If we confirmed it was a layoff due to lack of work, we'd check the appropriate box and send it back. No payment required from us, but our future tax rates could be affected if we had lots of claims.

The unemployment insurance system is funded by employer payroll taxes, not by individual payments for specific claims. Think of it like any insurance - everyone pays premiums, claims are paid from the pool. Washington ESD administers the program but the money comes from the taxes employers have been paying on behalf of all their employees.

One thing to add - while employers don't pay for your specific claim, they do care about their 'experience rating' which affects their future tax rates. Companies with more unemployment claims typically pay higher rates. But for a legitimate layoff, most employers won't contest your claim since it's not your fault.

Just to summarize what everyone's been saying - your employer has been paying unemployment insurance taxes all along while you worked there. Your benefits come from that collective pool, not from your specific employer's bank account. They get notified of your claim and can provide info, but they don't write a check for your weekly benefits.

Had similar questions when I was laid off from my retail job. Tried calling Washington ESD multiple times but kept getting disconnected after waiting on hold forever. Someone told me about Claimyr and I was able to get through to an actual ESD agent who explained the whole funding system to me. Really wish more people knew about services like that.

Bottom line: Employers fund the unemployment system through taxes, but they don't pay your individual benefits. It's an insurance model where everyone contributes to a pool. Your former employer's main role now is just to confirm the details of your separation when Washington ESD contacts them. Since you were laid off, there shouldn't be any issues with your claim.

I work in benefits administration and can add some additional context to what everyone's explained so well. Washington state's unemployment insurance is funded through the Employment Security Department's trust fund, which is built from employer contributions. The key thing to understand is that this is a "pay-as-you-go" system - current employer taxes fund current benefit payments. Your specific employer's tax rate is determined by their "experience rating" which looks at their claim history over the past few years. So while they're not cutting a check for your specific benefits, companies with higher claim rates do pay higher taxes. Since you mentioned it was a legitimate layoff due to lack of work, your former employer would have no grounds to contest your claim and it should process smoothly through the system.