Does company pay for unemployment benefits in Washington ESD system?
I'm trying to understand how unemployment insurance works in Washington state. When I file for UI benefits, does my former employer have to pay for my unemployment directly? My boss mentioned something about their rates going up because of claims, but I'm confused about who actually pays the money I receive each week. Can someone explain how the Washington ESD funding system works?
66 comments


Ashley Simian
Your employer doesn't pay your benefits directly. They pay into the unemployment insurance fund through quarterly tax payments to Washington ESD. The fund pays your weekly benefits, but yes, claims can affect their future tax rates.
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Miguel Harvey
•So the money comes from a general fund, not specifically from my employer? That makes more sense.
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Oliver Cheng
•exactly! its like insurance - everyone pays in, benefits come out of the pool
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Taylor To
Washington employers pay unemployment insurance taxes based on their payroll and claims history. Higher claims = higher tax rates for that employer. The actual benefit payments come from the state unemployment trust fund managed by Washington ESD.
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Miguel Harvey
•Is that why some employers try to fight unemployment claims? To keep their rates down?
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Taylor To
•Yes, some employers will contest claims to avoid rate increases. They have the right to respond to Washington ESD about the circumstances of your separation.
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Ella Cofer
•my old boss tried to say i quit when i was laid off, had to appeal and everything
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Kevin Bell
I had trouble getting through to Washington ESD when my employer contested my claim. Spent hours on hold trying to explain my side of the story. Found this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo showing how it works: https://youtu.be/7DieNd3C7zQ. Made the whole process way less stressful.
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Savannah Glover
•How much does something like that cost? I'm already tight on money waiting for my claim to process.
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Kevin Bell
•It was worth it for me since I was getting nowhere with the regular phone system. Sometimes you need help navigating the Washington ESD bureaucracy.
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Felix Grigori
This whole system is ridiculous! Why should employers get to contest legitimate claims? I was fired for attendance issues (chronic illness) and my employer is fighting it saying it was misconduct. Now I'm stuck in adjudication for weeks!
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Ashley Simian
•Employers have legitimate reasons to contest sometimes, like if someone was fired for theft or violated company policy. But medical issues should be protected.
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Felix Grigori
•That's what I thought too! I had medical documentation and everything. Washington ESD adjudication is taking forever to review it.
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Miguel Harvey
•Have you tried calling to check on your adjudication status? Sometimes they need additional information.
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Taylor To
The Washington State Employment Security Act requires employers to pay unemployment insurance taxes on wages up to the taxable wage base. For 2025, that's the first $68,500 of each employee's annual wages. The tax rate varies by employer based on their experience rating.
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Oliver Cheng
•so basically the more people an employer lays off, the higher their taxes?
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Taylor To
•Not exactly. It's based on the total amount of benefits charged to their account over a specific period. Layoffs due to lack of work are different from discharges for misconduct.
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Ella Cofer
wait so if i file for unemployment it costs my employer money eventually through higher taxes? no wonder my manager was being weird about my hours getting cut
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Ashley Simian
•If you're laid off due to lack of work, that's not misconduct and you should qualify for benefits. Don't let employer pressure stop you from filing if you're eligible.
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Ella Cofer
•good to know, they've been cutting everyone's hours but acting like its temporary
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Savannah Glover
•You might be eligible for partial unemployment benefits if your hours are reduced. Worth checking with Washington ESD about standby status.
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Savannah Glover
I'm confused about how this affects seasonal workers. I work construction and get laid off every winter. Does my employer's rate keep going up because of regular seasonal layoffs?
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Taylor To
•Seasonal employers can elect to use a different rate calculation method. Construction companies often have special provisions in the Washington unemployment system.
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Savannah Glover
•That makes sense. I was worried I was hurting my employer by filing every year.
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Felicity Bud
omg thank you for asking this! i was totally confused about who pays what. thought my employer had to write me checks directly lol
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Miguel Harvey
•I thought the same thing at first! The whole system is pretty confusing when you're dealing with it for the first time.
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Felicity Bud
•right?? and trying to call washington esd to ask questions is impossible
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Ashley Simian
Important distinction: employers pay the taxes that fund the system, but Washington ESD administers the actual benefit payments. Your weekly claim certification goes to the state, not your former employer.
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Miguel Harvey
•So when I do my weekly claim online, that information only goes to Washington ESD?
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Ashley Simian
•Correct. Your employer might get notified if there are issues with your claim, but your weekly certifications are between you and Washington ESD.
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Oliver Cheng
had to deal with a contested claim last year, took forever to resolve. employer said i was fired for performance but really they were just downsizing. finally got through to someone at washington esd who understood the situation
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Kevin Bell
•Getting through to Washington ESD can be a nightmare. That's exactly why I ended up using Claimyr - saved me so much time and frustration trying to reach an actual person.
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Felix Grigori
•Is that service legit? I'm desperate to talk to someone about my adjudication case.
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Kevin Bell
•Yeah it worked for me. They basically help you get through the phone system faster. Check out their demo video if you want to see how it works.
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Ella Cofer
so basically employers hate unemployment claims because it costs them money in taxes later? that explains a lot about how they act when people get laid off
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Taylor To
•It's more nuanced than that. Responsible employers budget for unemployment taxes as a cost of doing business. It's the ones trying to avoid their obligations that create problems.
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Ella Cofer
•yeah my current job seems pretty straight up about it, its the sketchy places that try to fight everything
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Savannah Glover
Question about partial unemployment - if I'm working reduced hours, does that still affect my employer's tax rate the same way as if I was totally unemployed?
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Ashley Simian
•Yes, partial unemployment benefits are still charged to the employer's account. The amount depends on how much you receive in benefits.
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Savannah Glover
•Good to know. At least I'm still working some, so the impact should be less than full unemployment.
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Miguel Harvey
This thread has been super helpful! One more question - does the employer tax rate reset every year or is it cumulative over several years?
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Taylor To
•Washington ESD uses a three-year experience rating period to calculate employer tax rates. So it's not just one year, but it's not permanent either.
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Miguel Harvey
•That seems fair - gives employers incentive to avoid unnecessary layoffs but doesn't punish them forever for economic downturns.
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Felicity Bud
wait so if i quit my job i cant get unemployment? or does my employer still have to pay somehow?
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Ashley Simian
•Generally you can't get unemployment if you quit without good cause. There are exceptions for things like unsafe working conditions or harassment.
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Felicity Bud
•oh that makes sense, otherwise everyone would just quit and collect benefits
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Taylor To
•Exactly. The system is designed to help people who lose their jobs through no fault of their own.
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Felix Grigori
UPDATE: Finally heard back about my adjudication! They approved my claim and said the medical documentation supported my case. Employer's contest was denied. Feels good to be vindicated!
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Miguel Harvey
•Congratulations! How long did the whole process take from start to finish?
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Felix Grigori
•About 6 weeks total. Way too long but at least it worked out. Now I understand why employers contest claims even when they know they're wrong.
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Oliver Cheng
•glad it worked out! the adjudication wait is always nerve wracking
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Kevin Bell
For anyone still struggling to reach Washington ESD, I'll mention Claimyr one more time. It's been a game changer for me when dealing with claim issues. Sometimes you just need to talk to a real person who can look at your account.
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Ella Cofer
•might have to try that if my hours dont pick back up soon. thanks for the recommendation
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Kevin Bell
•No problem. The phone system is just impossible otherwise. Hope your situation improves!
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Savannah Glover
Thanks everyone for all the explanations! I feel like I actually understand how the unemployment system works now. The employer tax connection makes so much more sense.
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Miguel Harvey
•Same here! This was exactly the kind of breakdown I needed. Appreciate everyone taking the time to explain.
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Ashley Simian
•Happy to help. The Washington ESD system can be confusing but it's important to understand your rights and how it all works.
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Oliver Cheng
good thread! bookmarking this for when i inevitably need to file again next winter. construction life lol
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Savannah Glover
•Ha! Same boat here. At least now I know my employer expects it and probably budgets for it.
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Oliver Cheng
•exactly, makes the whole thing less awkward when everyone knows its just part of the seasonal cycle
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Taylor To
Final note for anyone reading this later: if you have questions about unemployment eligibility or your employer contests your claim, document everything and don't hesitate to appeal if you believe you're eligible. The system works when people use it properly.
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Miguel Harvey
•Great advice. I'm definitely going to be more prepared if I ever need to file in the future.
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Felix Grigori
•Absolutely agree about documentation. Having my medical records made all the difference in my case.
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Ella Cofer
thanks everyone, this was way more informative than anything i could find on the washington esd website. you all rock!
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Felicity Bud
•seriously! way better than trying to decode government websites
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Ashley Simian
•The Washington ESD website has good info but it's not always written in plain English. Glad we could help break it down.
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