Does my former employer pay for unemployment benefits in Washington?

Your coworker is partially right but not completely. Employers in Washington do pay unemployment taxes (called SUTA - State Unemployment Tax Act) based on their payroll and their experience rating. So technically yes, employers fund the system, but they're not writing a check specifically for your individual claim. It's more like insurance premiums they pay into a pool.

yeah employers pay into the system but they dont pay YOUR benefits directly. its like car insurance - you pay premiums but the insurance company pays claims

The employer's tax rate can increase if they have a higher 'experience rating' from multiple unemployment claims, which is why some employers might contest legitimate claims. But don't let that worry you - if you were laid off and didn't quit or get fired for misconduct, you should be fine. Just make sure to file your claim with Washington ESD as soon as possible.

I had a similar situation last year and was really stressed about my employer contesting my claim. Turns out I was overthinking it, but I had trouble getting through to Washington ESD to ask questions. I ended up using this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Really saved me hours of calling and getting busy signals.

The whole system is designed so that employers can't just decide not to 'pay' for your unemployment. They pay taxes regardless, and Washington ESD makes the determination about whether you qualify. Your employer can provide information if asked, but they can't just say 'no we're not paying' and stop your benefits.

ive been through this whole thing multiple times unfortunately lol. employers pay unemployment taxes every quarter based on their payroll and experience rating. the more claims they have the higher their rate goes. but they cant just refuse to pay for your claim - thats not how it works at all

This is actually a really common misconception. I work in HR and deal with unemployment claims regularly. Employers pay into the state unemployment insurance fund through payroll taxes. The rate they pay depends on their 'experience rating' - companies with more claims pay higher rates. But they're not directly funding individual claims. Washington ESD administers the program and pays benefits from the insurance fund.

Wait, so does this mean my employer will know I'm collecting unemployment? I'm kind of embarrassed about the whole situation.

EMPLOYERS HATE PAYING UNEMPLOYMENT TAXES! My old boss used to complain about it all the time. But like everyone said, they can't just decide not to pay for your specific claim. The taxes are automatic based on their payroll.

Just to add some specifics - in Washington, employers pay SUTA tax on the first $62,500 of each employee's wages (as of 2024, might be higher now). The rate varies by industry and experience rating. New employers start at a standard rate and then it adjusts based on their claims history over time.

btw make sure you keep track of all your job search activities once you start collecting. washington has requirements about applying for jobs and they can ask for your records

I remember being super confused about this too when I first filed. The Washington ESD website has some good info about how the funding works if you want to read more about it. But bottom line - file your claim if you're eligible and don't worry about your employer 'paying' for it directly.

Just wanted to follow up on my earlier comment about Claimyr - I know someone mentioned it sounded too good to be true, but it really did help me when I needed to talk to Washington ESD about my claim. Sometimes you just need to speak with an actual person to get your questions answered, and the regular phone lines can be impossible to get through.

One thing nobody mentioned - if your employer does contest your claim, don't panic. You'll get a notice and can appeal if needed. Most legitimate layoffs don't get contested anyway.

the whole system would fall apart if employers could just decide not to pay unemployment taxes lol. its required by law just like any other payroll tax

Good luck with your claim! Just remember to file your weekly claims on time and keep looking for work. The system works pretty well once you understand it.

This thread has been really helpful! I'm in a similar situation and was worried about the same thing. Glad to know my employer isn't going to get a bill with my name on it.

Final thought - the unemployment insurance system is designed to be automatic and employer-neutral for exactly this reason. If employers could just refuse to 'pay' for claims, the whole safety net would be useless. The taxes they pay are separate from claim decisions.

Hope your claim goes smoothly! Most of the time it's pretty straightforward if you were laid off through no fault of your own.

Just wanted to echo what others said about filing quickly. Don't wait thinking about whether your employer will be upset about 'paying' for it - that's not how it works and you're entitled to benefits if you qualify.