Do you pay unemployment taxes where you live or work - Washington ESD confusion

Unemployment taxes are paid based on where you work, not where you live. Since you work in Washington, your employer pays Washington state unemployment insurance taxes to Washington ESD. That's why you're eligible for Washington unemployment benefits even though you live in Oregon.

just went through this same situation last year. worked in washington lived in california. all my unemployment went through washington esd even though i was living out of state. the taxes your employer pays go to washington not your home state

The key thing to understand is that unemployment insurance is an employer-paid tax, not something deducted from your paycheck. Your Washington employer pays SUTA (State Unemployment Tax Act) taxes to Washington ESD based on your wages. This creates your wage credits that determine your benefit amount. Your Oregon residence doesn't affect this at all.

I was stuck on this exact question for weeks trying to call Washington ESD to get clarification. The phone system is impossible - kept getting busy signals or hung up on after waiting 2+ hours. Finally found this service called Claimyr at claimyr.com that actually got me through to a real person at Washington ESD. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Game changer for getting answers to confusing questions like this!

This is actually pretty straightforward once you understand the system. Unemployment insurance follows the work location rule. If you work in multiple states, it gets more complicated, but for most people it's simple - benefits come from the state where you worked and earned wages.

OMG I've been worrying about this for nothing! I live in Idaho but work in Washington and thought I was going to have problems with my unemployment claim. Sounds like Washington ESD handles everything since that's where I work?

I'm in adjudication hell right now partly because of confusion over this exact issue. Washington ESD needed to verify my out-of-state address and it's been three weeks with no progress. Can't get anyone on the phone to explain what's happening.

The unemployment tax system is actually pretty logical when you think about it. The state where the job exists and where economic activity happens is the one that provides the safety net. Your home state doesn't benefit from your work activity so they don't provide the unemployment insurance.

Just want to add that this doesn't affect your regular income taxes at all. You'll still owe Oregon income tax on your unemployment benefits since that's where you live, even though the benefits come from Washington ESD.

been dealing with this cross-state stuff for years. worked in washington lived in oregon then moved to california while still working in washington. unemployment always followed the work location not where i lived. washington esd handled everything

The whole interstate unemployment thing used to be a nightmare but it's gotten much better. There are agreements between states now that make it smoother. Washington ESD is actually pretty good about handling out-of-state claimants compared to some other states.

This is why I love this forum - clear answers to confusing questions! I was about to drive myself crazy trying to figure out if I needed to deal with two different state unemployment systems.

Just to clarify one more time for anyone reading this thread - if you work in Washington state, you file for unemployment through Washington ESD regardless of where you live. The employer pays the unemployment taxes to Washington, not your home state.

One thing to watch out for though - make sure you're meeting Washington's job search requirements even if you live out of state. Some people think the requirements might be different but they're the same regardless of where you live.

Wish I had known about that Claimyr thing earlier. Spent literally hours on hold with Washington ESD trying to get clarification on my interstate claim. Would have saved me so much time and frustration.

For what it's worth, I've been through this with multiple states over the years and Washington ESD is actually one of the better ones for handling out-of-state addresses. Some states make it way more complicated than it needs to be.

The key takeaway is that unemployment insurance is tied to where you work, not where you live. This applies to pretty much every state - it's a standard rule across the unemployment system.

just want to echo what everyone else said - work location determines unemployment benefits not where you live. i've been in this situation multiple times with different jobs and it's always been the same rule

This has been a really helpful thread. I'm bookmarking it in case I need to reference it later or share it with someone else who has the same question.

I just went through something similar! I live in Nevada but work remotely for a Washington-based company. When I got laid off, I was initially confused about which state to file with, but it's definitely based on where your employer is located and pays taxes. Since your employer is withholding Washington taxes and paying into Washington's unemployment system, that's exactly where your benefits should come from. The fact that Washington ESD approved your claim confirms you're on the right track. Your Oregon residency just means you'll need to report those unemployment benefits on your Oregon state tax return when tax season comes around, but it doesn't affect the actual unemployment claim process at all.

This thread has been incredibly helpful! I'm in a similar boat - live in Oregon, work in Washington, and was totally confused about the tax implications. What really clicked for me reading through everyone's responses is that unemployment insurance is essentially a business expense that employers pay to the state where they operate, not where their employees happen to live. It's kind of like how a business pays property taxes where their building is located, not where their customers live. The system makes so much more sense when you think of it that way. Thanks everyone for sharing your experiences - especially those who've dealt with the interstate complications. Definitely saving this thread for future reference!