Does unemployment come from social security - Washington ESD benefit confusion
I'm really confused about where my unemployment money actually comes from. I keep seeing different things online and my neighbor told me that unemployment benefits are part of social security, but then someone else said that's completely wrong. I just filed my first claim with Washington ESD and I'm trying to understand if this affects my social security benefits later or if they're totally separate things. Can someone explain how this actually works? I don't want to mess up my future retirement benefits by collecting unemployment now.
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PixelPrincess
No, unemployment insurance (UI) and Social Security are completely separate programs with different funding sources. Your unemployment benefits from Washington ESD come from a trust fund that's funded by employer payroll taxes, not employee contributions. Social Security comes from FICA taxes that you and your employer both pay into. Collecting unemployment won't affect your Social Security benefits at all.
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Astrid Bergström
•Oh thank god, I was really worried about that. So the money Washington ESD pays me doesn't reduce what I'll get from Social Security when I retire?
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PixelPrincess
•Correct! They're funded completely differently. UI is paid for entirely by employers through state and federal unemployment taxes. Your Social Security earnings record is based on your work history and what you paid in FICA taxes over the years.
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Omar Farouk
wait so employers pay for all of it? i thought some came out of my paycheck
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PixelPrincess
•In Washington state, unemployment insurance is funded 100% by employer contributions. You don't pay anything from your paycheck for UI coverage. That's different from Social Security where both you and your employer contribute.
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Chloe Martin
•That's actually pretty cool that we don't have to pay into it ourselves. Makes sense why some employers get upset about UI claims though.
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Diego Fernández
I had the same confusion when I first filed! What helped me was actually calling Washington ESD to get clarification, but good luck getting through their phone lines. I probably tried calling 50+ times before giving up. Finally found this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Basically they handle the calling and waiting for you.
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Astrid Bergström
•How much does something like that cost? I'm already stressed about money since I lost my job.
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Diego Fernández
•I thought it was worth it to get my questions answered directly from Washington ESD rather than guessing. The peace of mind was valuable to me, especially when dealing with benefit calculations and eligibility.
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Anastasia Kuznetsov
•Interesting, I've never heard of a service like that. Might be worth checking out since I can never get through to Washington ESD either.
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Sean Fitzgerald
The confusion makes sense because both programs deal with government benefits, but they serve different purposes. Unemployment insurance is temporary income replacement when you lose your job through no fault of your own. Social Security is long-term retirement, disability, or survivor benefits. Washington ESD administers UI benefits in our state, while Social Security Administration handles Social Security benefits.
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Astrid Bergström
•That helps clarify it. So if I'm collecting unemployment now, I can still expect my full Social Security benefits when I turn 65?
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Sean Fitzgerald
•Absolutely. Your Social Security benefits are calculated based on your highest 35 years of earnings where you paid FICA taxes. Unemployment periods don't count as earnings years, but they also don't reduce your future benefits.
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Zara Khan
THANK YOU for asking this question! I've been wondering the same thing for weeks but felt stupid asking. I thought maybe unemployment was like an advance on social security or something. Glad to know I was wrong.
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Astrid Bergström
•Right? I felt dumb asking too but I'm glad I did. Better to ask and learn than worry about it.
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MoonlightSonata
•No such thing as a stupid question when it comes to government benefits. The systems are confusing on purpose it seems like.
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Mateo Gonzalez
Here's another way to think about it - unemployment insurance is like car insurance or health insurance. Your employer pays premiums (unemployment taxes) to cover you in case you need benefits. Social Security is more like a retirement savings account that you and your employer both contribute to throughout your working years.
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Astrid Bergström
•That's a really good analogy! Makes it much clearer how they're different.
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Nia Williams
•Yeah that insurance comparison really helps. Never thought of UI that way before.
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Luca Ricci
Be careful though - while unemployment won't affect your Social Security retirement benefits, it might affect other benefits like SSI if you're receiving those. But for regular Social Security retirement, you're fine.
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Astrid Bergström
•I'm not on SSI, just worried about regular Social Security when I retire. Good to know there could be interactions with other programs though.
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PixelPrincess
•Good point about SSI. That's means-tested so any income including unemployment could affect eligibility. But Social Security retirement benefits aren't means-tested.
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Aisha Mohammed
I remember being confused about this too when I first lost my job. What really helped was talking to someone at Washington ESD who explained the difference. I used that Claimyr service someone mentioned earlier to actually get through to them. Worth every penny to get accurate information instead of worrying.
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Ethan Campbell
•Was it hard to use? I'm not very tech savvy but I really need to talk to someone at Washington ESD about my claim.
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Aisha Mohammed
•Super easy actually. You just give them your info and they call Washington ESD for you, then connect you when they get an agent on the line. Way better than sitting on hold for hours.
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Yuki Watanabe
The funding difference is key to understanding this. Washington ESD gets its money from the Unemployment Insurance Trust Fund, which is funded by employer taxes. Social Security gets its money from FICA payroll taxes paid by workers and employers. Completely separate pots of money.
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Astrid Bergström
•So when I was working, my employer was paying into the UI trust fund without me even knowing?
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Yuki Watanabe
•Exactly! Employers pay state unemployment insurance taxes and federal unemployment taxes (SUTA and FUTA) based on their payroll. It's one of the costs of doing business that most employees never see.
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Carmen Sanchez
also unemployment is temporary - you can only collect for so many weeks depending on the unemployment rate. social security retirement benefits last for life once you start collecting them. totally different purposes
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Astrid Bergström
•How long can you collect unemployment in Washington? I hope I find a job soon but want to know what to expect.
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PixelPrincess
•In Washington, you can typically collect for up to 26 weeks in a benefit year, though extensions are sometimes available during high unemployment periods. Check your Washington ESD account for your specific benefit year dates.
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Andre Dupont
One thing that might be confusing you is that both programs are administered by government agencies, but they're completely different agencies. Washington ESD handles unemployment insurance for our state, while the Social Security Administration is federal and handles Social Security benefits.
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Astrid Bergström
•That probably was part of my confusion. I just thought all government benefits came from the same place somehow.
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Zoe Papadakis
•Nope, there are tons of different agencies handling different programs. Gets confusing fast when you're trying to navigate it all.
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ThunderBolt7
Your neighbor might have been thinking of Social Security Disability Insurance (SSDI) which is different from regular Social Security retirement benefits. But even SSDI is separate from unemployment insurance. They're all different programs with different rules.
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Astrid Bergström
•Yeah my neighbor isn't always the most reliable source for this stuff. Glad I asked here instead of just taking their word for it.
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Jamal Edwards
•Always good to verify information about benefits. Too much misinformation floating around out there.
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Mei Chen
The key takeaway is that collecting unemployment now won't hurt your Social Security benefits later. You earned those Social Security credits through years of working and paying FICA taxes. Unemployment is just temporary help while you look for your next job.
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Astrid Bergström
•Perfect, that's exactly what I needed to know. Thank you everyone for clearing this up!
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Liam O'Sullivan
•Glad we could help! Don't hesitate to ask if you have other questions about the unemployment process.
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Amara Okonkwo
If you need to verify any of this information directly with Washington ESD, I'd recommend trying that Claimyr service that was mentioned earlier. I tried calling Washington ESD myself dozens of times and could never get through. Claimyr got me connected in like 20 minutes.
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Astrid Bergström
•I might do that if I have more questions. Right now I feel much better understanding that these are separate programs.
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Giovanni Marino
•Smart to get official confirmation when you can. These forum discussions are helpful but nothing beats talking to the actual agency.
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Fatima Al-Sayed
Just to add one more point - unemployment benefits are also taxable income, while Social Security benefits may or may not be taxable depending on your total income. Another difference between the programs.
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Astrid Bergström
•Good to know about the taxes. I'll make sure to set some money aside or have taxes withheld from my unemployment payments.
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PixelPrincess
•Yes, you can choose to have federal taxes withheld from your Washington ESD payments when you certify your weekly claims. Highly recommended to avoid a big tax bill later.
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