Does a company have to pay unemployment benefits in Washington - confused about employer responsibilities

So our company is literally paying for my coworker's unemployment checks? That seems weird that they have to pay someone they laid off.

Not directly - employers pay into the unemployment insurance fund, and Washington ESD pays benefits from that fund. But yes, companies with more layoffs pay higher rates.

That's why some companies fight unemployment claims so hard! They don't want their rates to increase.

Exactly. Each approved claim can impact the employer's experience rating and future tax liability with Washington ESD.

This makes so much more sense now. I was wondering why HR seemed so concerned about the layoff paperwork.

Is there a way for employers to check what their current unemployment tax rate is?

Yes, employers can log into their Washington ESD business account to see their current rate and experience rating. It's updated annually based on claims history.

Did you win your appeal? That sounds really stressful to deal with.

Yeah, eventually. But it took months of back and forth. The employer couldn't prove misconduct so Washington ESD approved my claim. If you're in a situation like that, there's actually a service called Claimyr (claimyr.com) that helps people get through to Washington ESD agents faster. They have a video demo showing how it works: https://youtu.be/7DieNd3C7zQ

Never heard of that service but getting through to Washington ESD by phone is definitely a nightmare. Might be worth checking out.

Makes sense from a policy standpoint but must be tough on small businesses during economic downturns.

Definitely. Small businesses can see their unemployment tax rates spike significantly after even one or two layoffs, which can be a real financial burden.

How much does it typically cost? Is it a significant expense for most companies?

For most employers it's not huge - maybe a few hundred to a few thousand per quarter depending on payroll size. But if you have a lot of claims, it can get expensive fast.

Our company's rate doubled after we had to do layoffs during the pandemic. It was painful but understandable given how the system works.

That's not always true though. Washington ESD looks at whether someone had good cause to quit. If working conditions were bad enough, they might still approve benefits.

Good point. I think they call it 'constructive dismissal' when an employer makes conditions so bad that quitting is the only reasonable option.

Six weeks?! That's a long time to wait for benefits when you're out of work.

Yeah, it was stressful. I kept trying to call Washington ESD to check on the status but could never get through. Finally someone told me about Claimyr which helps you get connected to actual agents. Wish I had known about it earlier.

I've used Claimyr too when I had adjudication issues. It's definitely worth it if you need to actually talk to someone at Washington ESD instead of just waiting.

Wait, so employees in Washington don't pay anything for unemployment insurance? It's all on the employer?

Correct. In Washington state, unemployment insurance is funded entirely by employer contributions. Employees don't have unemployment taxes deducted from their paychecks like they do for Social Security and Medicare.

That's a really balanced perspective. I appreciate hearing from someone who actually has to pay these taxes.

Agreed. The system isn't perfect but it serves an important purpose in providing a safety net for workers.

Good reminder. Sometimes people feel guilty about filing for unemployment, but you paid into the system through your work and deserve the benefits if you qualify.

Exactly. And if an employer tries to contest a legitimate claim just to avoid higher taxes, Washington ESD will see through that pretty quickly.

That's a good way to think about it - like insurance that employers buy to protect their workers.

And like any insurance, the more claims you have, the higher your premiums go. It's the same principle.

That's refreshing to hear. Not all employers are that supportive of their former employees filing for benefits.

We figure we're going to pay the taxes anyway based on our payroll, so we might as well make sure people get the help they need. Plus, fighting legitimate claims usually backfires and can make your rating worse.

This is important. I've seen people give up on filing because their employer said they wouldn't be eligible, but that's not the employer's call to make.

Right. And if you do need to appeal or have questions about your claim, services like Claimyr can help you actually get through to Washington ESD agents who can give you real answers about your specific situation.

Thanks everyone for explaining this so clearly. I had no idea how the system actually worked before asking here.

It's one of those things that affects everyone but most people don't understand until they need to use it or pay for it.