Does it cost an employer when an employee files for unemployment in Washington State?
I'm curious about the financial impact on employers when workers file unemployment claims with Washington ESD. My former company laid me off last month and I filed for UI benefits, but a coworker mentioned that employers have to pay something when people file claims. Is this true? Does filing for unemployment actually cost my old employer money? I don't want to create problems for them since they were decent to work for, but I need the benefits to get by while job searching.
56 comments


Dylan Mitchell
Yes, employers do pay into the unemployment system, but it's not a direct cost per claim. Washington employers pay unemployment taxes quarterly based on their payroll and their experience rating. Your claim will affect their future tax rates, but they don't get a bill just because you filed.
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Fatima Al-Hashemi
•So they won't have to pay anything immediately? That's a relief. I was worried they'd get hit with some kind of fee right away.
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Dylan Mitchell
•Correct, no immediate payment. The impact shows up in their quarterly tax calculations later, and only if they have multiple claims or a pattern of layoffs.
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Sofia Martinez
Don't feel guilty about filing! You paid into this system through your paychecks too. Employers know unemployment insurance is part of doing business. If they laid you off, they should expect people to file claims.
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Fatima Al-Hashemi
•Thanks, I needed to hear that. I guess I was overthinking it because they were good employers overall.
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Dmitry Volkov
•exactly!! you earned those benefits, don't let anyone make you feel bad about using them
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Ava Thompson
The employer's unemployment tax rate depends on their "experience rating" which is basically how many claims their former employees have filed over time. More claims = higher tax rate for the employer. But this is spread out over years, not an immediate cost.
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CyberSiren
•How much higher can the rates go? My company has had several layoffs this year and I'm wondering if that's going to hurt them financially.
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Ava Thompson
•Tax rates in Washington can range from about 0.2% to 6% of wages depending on the experience rating. New employers start at a standard rate around 2.7%.
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Miguel Alvarez
I work in HR and can confirm - we budget for unemployment costs as part of our regular business expenses. If we're laying people off, we absolutely expect them to file for benefits. It would be weird if they didn't! The cost impact is minimal compared to other business expenses.
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Fatima Al-Hashemi
•That's really helpful to know from someone on the employer side. Makes me feel much better about filing.
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Zainab Yusuf
•Do employers ever fight unemployment claims to avoid the cost impact?
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Miguel Alvarez
•Some do contest claims if they think the separation wasn't eligible (like misconduct), but most don't contest legitimate layoffs. The administrative cost usually isn't worth it.
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Connor O'Reilly
I was stressing about this same thing when I got laid off earlier this year! Had to call Washington ESD multiple times to get my claim sorted out. The phone lines are absolutely horrible - I probably spent 6 hours total trying to get through. Finally found this service called Claimyr that helped me reach an actual person. Check out claimyr.com if you need to talk to someone at ESD.
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Fatima Al-Hashemi
•Thanks for the tip! I haven't had to call them yet but I'll keep that in mind if I run into issues with my weekly claims.
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Yara Khoury
•how does that service work? is it like a callback thing?
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Connor O'Reilly
•Yeah, they basically call for you and get you connected to an actual ESD agent. Way better than sitting on hold forever. There's a demo video at https://youtu.be/7DieNd3C7zQ that explains it.
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Keisha Taylor
The bottom line is that unemployment insurance is exactly that - insurance. Employers pay premiums (taxes) and employees file claims when needed. It's not personal, it's just how the system works. Your employer probably has way bigger financial concerns than your UI claim.
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StardustSeeker
•This is the best way to think about it. Same as health insurance or workers comp - it's just part of the cost of having employees.
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Paolo Marino
honestly employers who get mad about unemployment claims are red flags anyway. good companies understand this is part of the deal
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Amina Bah
•So true! I had one employer try to guilt trip me about filing and that told me everything I needed to know about their character.
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Fatima Al-Hashemi
•Glad to hear my old company isn't like that. They actually gave me good references for my job search.
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Oliver Becker
There are some employers who try to contest every claim to keep their tax rates down, but Washington ESD usually sees right through frivolous contests. Legitimate layoffs almost never get successfully contested.
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Natasha Petrova
•What happens if an employer does contest your claim?
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Oliver Becker
•You'll get a notice from ESD about the contest and have a chance to respond. If they can't resolve it, there might be a phone hearing. But most contests for layoffs fail.
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Javier Hernandez
•I went through a contested claim last year - it was stressful but I won because I had all my documentation ready.
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Emma Davis
The unemployment tax system is actually pretty fair. Companies that rarely lay people off pay lower rates, while companies with frequent layoffs pay more. It incentivizes stable employment.
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LunarLegend
•Makes sense from a policy perspective. Rewards good employers and makes bad ones pay more.
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Malik Jackson
Don't worry about it at all! I've been through multiple layoffs over the years and filed unemployment each time. Never had a single employer complain or make it weird. It's just business.
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Fatima Al-Hashemi
•Thanks everyone for all the reassurance. I feel much better about my decision to file now!
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Isabella Oliveira
•Good luck with your job search! The benefits will help you take your time finding something good instead of jumping at the first offer.
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Ravi Patel
Just wanted to add that some employers actually prefer you file for unemployment instead of them having to pay severance packages. UI benefits come from the state system, not directly from their budget.
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Freya Andersen
•That's a really good point I hadn't thought of. Unemployment is basically government-subsidized severance in a way.
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Omar Zaki
If anyone's having trouble getting through to Washington ESD about their claims, I had success with a service that helps you reach agents. It's called Claimyr and they got me connected when I couldn't get through on my own. Really saved me a lot of frustration.
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CosmicCrusader
•Is that the same one someone mentioned earlier? Might need to try that if my weekly claim gets flagged for anything.
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Omar Zaki
•Yeah probably the same one. Really helped when I had an adjudication issue that needed explaining to an actual person.
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Chloe Robinson
The whole system is designed so that people who lose their jobs through no fault of their own can get temporary support. Employers know this when they hire people. You're using a benefit you're entitled to.
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Diego Flores
•Exactly! And the job search requirements make sure people are actively looking for work, so it's not like anyone's just sitting around collecting checks.
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Anastasia Kozlov
I manage benefits for a mid-size company and we actually track our unemployment costs as part of our HR metrics. It's usually less than 1% of our total payroll costs, so really not a big deal financially.
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Sean Flanagan
•That puts it in perspective! Less than 1% is basically a rounding error for most business budgets.
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Zara Mirza
One thing to remember is that you also paid into this system through your paychecks (it comes out of state taxes), so you're not getting something for nothing. You earned these benefits.
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Fatima Al-Hashemi
•I never really thought about it that way, but you're right. I did pay into the system through my taxes all these years.
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NebulaNinja
Some employers actually encourage laid-off workers to file for unemployment because it helps with the company's reputation and employee morale. Shows they care about their people even after the working relationship ends.
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Luca Russo
•That's really nice when companies do that. Shows they understand it's not personal, just economic circumstances.
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Nia Wilson
Been through this whole process twice now. First time I felt guilty, second time I realized it's just part of how the labor market works. Employers factor these costs into their business models.
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Mateo Sanchez
•Same here! First layoff I was so worried about 'costing' my employer money. Now I know better.
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Aisha Mahmood
Quick tip for anyone dealing with Washington ESD - if you need to reach them by phone and can't get through, there's a service that helps connect you. I used Claimyr when I had issues and it saved me hours of calling. Worth checking out if you hit any snags with your claim.
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Ethan Clark
•Good to know there are options when the phone system gets backed up. I'll remember that if I run into problems.
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AstroAce
The way I look at it, unemployment insurance protects both workers and employers. Workers get income support during job transitions, and employers get protection from having to provide individual severance packages to every laid-off worker.
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Fatima Al-Hashemi
•That's a great way to frame it - mutual protection rather than one-sided cost. Thanks for all the helpful perspectives everyone!
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Mason Lopez
As someone who works in payroll, I can assure you that employers budget for unemployment insurance costs just like any other business expense. The quarterly tax payments are based on payroll amounts and experience ratings, so there's no surprise bills when someone files a claim. Your former employer knew this was a possibility when they made the layoff decision. Don't feel guilty about using a benefit you're entitled to - that's exactly what it's there for!
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Harper Thompson
•This is really reassuring to hear from someone who handles the actual payroll side of things! I was worried about creating unexpected costs for my old employer, but knowing they budget for this makes me feel much better about filing. It's nice to know the system is designed to be predictable for businesses while still protecting workers like me.
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The Boss
I went through the exact same worry when I was laid off from my retail job last year! I was so concerned about "costing" my employer money that I almost didn't file. But after reading through all these responses, it's clear that unemployment insurance is just a normal part of the business-employee relationship. The system is designed to spread costs over time through regular tax payments, not hit employers with surprise bills. Your former company made a business decision to do layoffs - they absolutely expected people to file for benefits afterward. Focus on your job search and don't let guilt stop you from using the safety net you've earned!
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Vera Visnjic
•Thanks for sharing your experience! It's really helpful to hear from someone who went through the same worries. I was definitely overthinking this whole situation. Reading everyone's responses has been so educational - I had no idea how the system actually worked before posting this question. It's amazing how guilty we can make ourselves feel about using benefits we've literally paid into through our taxes. I'm going to focus on my job search now instead of worrying about my old employer. They were good to me, so I'm sure they understand this is just how things work when layoffs happen.
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Zara Shah
I completely understand your concern about potentially impacting your former employer - it shows you have a good heart! But everyone here is absolutely right that you shouldn't feel guilty about filing. I work in small business consulting and help companies understand their unemployment costs. The key thing to remember is that employers pay these taxes whether anyone files claims or not - it's not like your claim triggers a new expense. The experience rating system adjusts their future rates gradually over several years, so there's no immediate financial hit. Your former employer would much rather have you collecting state unemployment benefits than asking them for extended severance pay or other direct assistance. File your claim, focus on finding your next opportunity, and don't let unnecessary guilt hold you back from using the safety net that exists specifically for situations like yours!
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Yara Elias
•This is such a thoughtful and comprehensive explanation! As someone who's new to understanding how unemployment works, it's really helpful to hear from a business consultant's perspective. I especially appreciate you pointing out that employers pay the taxes regardless of whether claims are filed - I didn't realize it worked that way. It makes so much more sense now why it's not a burden on individual employers when people file. Your point about them preferring state benefits over direct severance is something I never considered either. Thank you for taking the time to explain all of this so clearly!
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