Do taxpayers pay for unemployment benefits in Washington state?

Your neighbor is wrong. Unemployment benefits in Washington are funded through employer payroll taxes, not general taxpayer funds. Employers pay both state and federal unemployment taxes based on their payroll. It's called SUTA (State Unemployment Tax Act) and FUTA (Federal Unemployment Tax Act). So technically, it's not coming out of your income taxes or your neighbor's income taxes.

The funding system is actually more complex than just employer taxes. While employers do pay the majority through SUTA taxes, there are some general fund contributions during high unemployment periods. Washington ESD also gets federal funding for administration costs. But you're right that it's not directly from individual taxpayers in the traditional sense.

I had the same question when I was on unemployment last year. Had to call Washington ESD to ask about it directly. If you need to reach them for any other questions, I recently discovered 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. Way better than trying to call and getting busy signals all day.

your neighbor sounds like one of those people who thinks unemployment is welfare. its literally insurance that your employer paid for. you earned those benefits by working. don't feel guilty about using something you're entitled to

The Washington Employment Security Department has a good explanation of this on their website. Unemployment insurance is funded through taxes on employers, not employees. The tax rate varies by industry and the employer's experience with layoffs. Construction companies typically pay higher rates than office jobs, for example, because layoffs are more common in construction.

I used to work in HR and can confirm this. We paid quarterly unemployment taxes for all our employees. It was a significant expense for the company, especially during years when we had to do layoffs. But that's the point - it's pre-funded insurance for situations exactly like unemployment.

Just want to add that even if some taxpayer money was involved (which it mostly isn't for regular UI), unemployment benefits help stabilize the economy. People on unemployment spend that money on necessities, which keeps businesses running and people employed. It's not just charity - it's economic policy.

The trust fund that pays unemployment benefits is built up over time through employer contributions. During good economic times, more money goes in than comes out. During recessions, more goes out than comes in. It's designed to balance over economic cycles.

Don't let anyone make you feel bad about collecting unemployment. You worked and your employer paid into the system specifically to provide this safety net. It's not welfare or charity - it's an earned benefit.

I was wondering about this too when I first filed. The Washington ESD website has a section explaining the funding, but it's buried in their FAQ section. Basically, it's all employer-funded through payroll taxes. Your neighbor is misinformed.

I tried calling Washington ESD last month to ask about this exact question and couldn't get through. Finally used that Claimyr service someone mentioned earlier and got connected to an agent who explained the whole system. Worth it if you have detailed questions about how your benefits are funded.

Another way to think about it - if unemployment was paid by taxpayers, wouldn't it be administered by the tax department instead of the Employment Security Department? The fact that it's handled by ESD shows it's employment-related insurance, not a tax-funded program.

I've been on both unemployment and food stamps at different times. The difference in how you apply and who administers them shows they're funded differently. DSHS handles food stamps (taxpayer funded), while ESD handles unemployment (employer funded).

Just to put this to rest - unemployment insurance is funded by employer payroll taxes, period. It's not welfare, it's not taxpayer funded (except in extraordinary circumstances), and you shouldn't feel guilty about using benefits you're entitled to. Tell your neighbor to educate themselves before making comments.

Fun fact: the unemployment insurance system was created during the Great Depression as part of the Social Security Act. It was always designed to be employer-funded, not taxpayer-funded. It's been working this way for almost 90 years.

I work in payroll and can confirm we pay unemployment taxes on every employee every quarter. It's automatic - not optional. So yes, your benefits are definitely pre-funded by employer contributions, not current taxpayer money.

The only time general taxpayer funds might be involved is during extended benefit periods or if the trust fund gets so depleted that federal loans are needed. But your regular weekly benefit amount? That's all from employer contributions to the unemployment insurance system.

Had similar questions about funding when I was collecting benefits after my plant closed down. Used Claimyr to finally get through to Washington ESD and the agent was very clear - regular UI benefits come from employer taxes, not individual taxpayer funds. Don't let people make you feel bad about collecting what you're entitled to.

Bottom line: unemployment insurance is exactly that - insurance. Your employer paid premiums (taxes) to cover you in case you lost your job. Just like health insurance or car insurance, you're using benefits that were pre-paid. Nothing to feel guilty about at all.

Your neighbor is completely wrong and spreading misinformation. Unemployment benefits in Washington state are funded entirely through employer payroll taxes (SUTA - State Unemployment Tax Act), not through individual taxpayer funds. Every employer pays quarterly unemployment taxes based on their payroll and claim history. This money goes into a trust fund that pays out benefits to eligible workers. You earned these benefits through your work history, and your employer already paid the premiums for this insurance. Don't let anyone make you feel guilty for using a benefit system that was specifically designed to help workers like you during temporary unemployment periods.