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Miguel Harvey

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?

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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So the money comes from a general fund, not specifically from my employer? That makes more sense.

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exactly! its like insurance - everyone pays in, benefits come out of the pool

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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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Is that why some employers try to fight unemployment claims? To keep their rates down?

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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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my old boss tried to say i quit when i was laid off, had to appeal and everything

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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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How much does something like that cost? I'm already tight on money waiting for my claim to process.

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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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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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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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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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Have you tried calling to check on your adjudication status? Sometimes they need additional information.

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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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so basically the more people an employer lays off, the higher their taxes?

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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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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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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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good to know, they've been cutting everyone's hours but acting like its temporary

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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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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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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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That makes sense. I was worried I was hurting my employer by filing every year.

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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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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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right?? and trying to call washington esd to ask questions is impossible

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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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So when I do my weekly claim online, that information only goes to Washington ESD?

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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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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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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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Is that service legit? I'm desperate to talk to someone about my adjudication case.

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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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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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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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yeah my current job seems pretty straight up about it, its the sketchy places that try to fight everything

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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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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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Good to know. At least I'm still working some, so the impact should be less than full unemployment.

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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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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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That seems fair - gives employers incentive to avoid unnecessary layoffs but doesn't punish them forever for economic downturns.

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wait so if i quit my job i cant get unemployment? or does my employer still have to pay somehow?

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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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oh that makes sense, otherwise everyone would just quit and collect benefits

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Exactly. The system is designed to help people who lose their jobs through no fault of their own.

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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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Congratulations! How long did the whole process take from start to finish?

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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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glad it worked out! the adjudication wait is always nerve wracking

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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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might have to try that if my hours dont pick back up soon. thanks for the recommendation

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No problem. The phone system is just impossible otherwise. Hope your situation improves!

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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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Same here! This was exactly the kind of breakdown I needed. Appreciate everyone taking the time to explain.

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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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good thread! bookmarking this for when i inevitably need to file again next winter. construction life lol

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Ha! Same boat here. At least now I know my employer expects it and probably budgets for it.

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exactly, makes the whole thing less awkward when everyone knows its just part of the seasonal cycle

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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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Great advice. I'm definitely going to be more prepared if I ever need to file in the future.

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Absolutely agree about documentation. Having my medical records made all the difference in my case.

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thanks everyone, this was way more informative than anything i could find on the washington esd website. you all rock!

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seriously! way better than trying to decode government websites

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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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