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Fatima Al-Mazrouei

Does your old employer pay unemployment benefits in Washington?

I'm confused about how unemployment works in Washington state. My friend told me that my previous employer is the one who actually pays my unemployment benefits, but I thought it came from the state. I got laid off from my retail job last month and just started receiving UI payments. Does Washington ESD take money directly from my old employer's account every time I get paid? I'm worried my former boss might be mad about having to pay for my benefits.

Your employer doesn't pay your benefits directly. Washington ESD operates on an insurance system where employers pay quarterly taxes into the unemployment fund based on their payroll and experience rating. These taxes fund the entire system, not individual claims.

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Oh okay, so they're not writing a check every time I get paid? That makes me feel better.

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Right, it's more like car insurance - you pay premiums but the insurance company pays the claims when they happen.

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Actually employers do pay for unemployment in a way. The more claims filed against them, the higher their tax rate goes up. So they definitely notice when people file for benefits.

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True, but that's through the experience rating system over time, not a direct payment per claim. It's calculated annually based on their overall claim history.

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So my claim could affect their rates later but they're not paying for it right now?

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Exactly. If they have a lot of layoffs their rates will go up next year, but they're not cutting checks for your weekly benefits.

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I had the same confusion when I first filed! The system is funded by employer taxes that go into a big pool. Your benefits come from that pool, not directly from your former employer's pocket.

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That's reassuring. I was worried they might try to contest my claim or something.

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They can contest it if they think you were fired for misconduct, but most layoffs are pretty straightforward. Did you get a separation notice?

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If you're having trouble reaching Washington ESD to ask questions like this, I found this service called Claimyr that helped me get through to an agent. They have a website at claimyr.com and there's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helped when I couldn't get through the phone lines.

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Thanks! I haven't had issues yet but good to know there are options if I do.

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Never heard of that but the phone lines are definitely impossible to get through sometimes.

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The Washington Employment Security Department maintains the unemployment insurance fund through employer contributions. Each employer pays taxes quarterly based on their taxable wages and experience rating. The fund is what pays all unemployment benefits statewide.

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So it's like a big insurance pool that all employers pay into?

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Exactly. Think of it as statewide unemployment insurance funded by all employers collectively.

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And the tax rates vary by industry too. Some industries with more seasonal layoffs pay higher rates.

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your employer might get a notice that you filed for benefits but they dont pay the money directly to you. its all through the state system

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Do they always get notified when someone files?

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yeah washington esd sends them a notice so they can respond if they want to contest it

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I think some employers don't understand this either. When I got laid off my manager seemed surprised that I was filing for unemployment like it was going to cost them money immediately.

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A lot of small business owners don't fully understand how the system works. They just know they pay unemployment taxes and see the connection.

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Yeah my boss seemed kind of annoyed when I mentioned filing, but maybe he just doesn't understand the system either.

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The whole system is designed so individual employers aren't directly paying individual claims. Otherwise no one would ever hire anyone knowing they might have to pay their salary even after laying them off!

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That makes total sense when you put it that way.

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Right, it spreads the risk across all employers instead of putting it all on one company.

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The experience rating system is what keeps employers somewhat accountable though. Companies with high turnover and lots of layoffs end up paying higher tax rates over time.

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Correct. It incentivizes employers to maintain stable employment when possible, since frequent layoffs increase their future tax burden.

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So there is some connection between claims and what employers pay, just not directly?

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Yes, but it's calculated over time based on their overall pattern of claims, not your individual claim amount.

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I was worried about this too when I first filed. Turns out the employer just gets a notice that you filed and they can respond if they disagree with your eligibility. Most don't respond unless there's misconduct involved.

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How long do they have to respond?

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I think it's like 10 days or something. But if it's a straightforward layoff they usually don't bother.

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Just to add - even if your employer contests your claim, that doesn't mean they're paying for it. They're just saying they don't think you should be eligible for benefits from the state fund.

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Good to know. I don't think they'll contest since it was clearly a layoff due to budget cuts.

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Yeah, layoffs are usually pretty cut and dry. It's when people get fired for performance or misconduct that employers might contest.

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If you do run into any issues with your claim or need to talk to Washington ESD about this stuff, that Claimyr service I mentioned earlier really does work. I was stressed about my claim status and kept getting busy signals, but they got me through to an actual person.

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How much does something like that cost?

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I don't remember the exact price but it was worth it for the peace of mind when I couldn't get through any other way.

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The bottom line is Washington ESD handles all the money. Your employer contributed to the system through taxes, but they're not writing you a check every week. Don't feel guilty about filing if you were legitimately laid off.

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Thanks everyone. This really helps me understand how it all works. I was overthinking it.

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No problem! The system can be confusing at first but it's designed to help people who lose their jobs through no fault of their own.

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Just make sure you keep filing your weekly claims and doing your job search activities. The funding source doesn't matter as much as staying compliant with the requirements.

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Yeah I've been keeping up with the job search log. Three contacts per week right?

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That's right. And make sure you're documenting them properly in case they audit your search activities.

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I work in HR and can confirm that we get notices when former employees file for unemployment, but we're not paying their benefits directly. We paid into the system through our quarterly unemployment taxes.

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Do most employers respond to those notices?

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Only if there's a legitimate reason to contest, like if someone was fired for stealing or something. Layoffs and downsizing usually don't get contested.

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That's good to know from someone who handles it from the employer side.

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washington esd probably has info about this on their website but good luck finding it in all that bureaucratic language lol

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Haha yeah, their website is not the most user-friendly.

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I always get lost trying to navigate their site. This forum is way more helpful.

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The key thing to remember is that unemployment insurance is exactly that - insurance. Your employer paid premiums (taxes) and now you're filing a claim against that insurance. They're not personally paying your claim any more than they'd personally pay if you crashed a company car.

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That's a really good analogy. Makes it much clearer.

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Yeah, people get confused because they think of it as coming from their employer when really it's coming from the insurance fund their employer paid into.

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Just wanted to say thanks for asking this question because I was wondering the same thing! I felt bad about filing but now I understand it's not directly costing my old job money.

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Glad I'm not the only one who was confused about this!

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Right? The whole system makes way more sense now.

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One last thing - if you ever have trouble reaching Washington ESD by phone, there are services like Claimyr that can help you get through. I used them when I had questions about my claim that I couldn't get answered through the website.

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Several people have mentioned that service now. Might be worth looking into if I run into issues.

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Yeah, sometimes you just need to talk to a real person and their regular phone lines are impossible.

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Hope this all helped clear things up! The unemployment system in Washington is actually pretty straightforward once you understand that it's funded by employer taxes going into a state insurance fund, not direct payments from individual employers.

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Definitely helped! Thanks everyone for taking the time to explain this. I feel much better about my situation now.

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You're welcome! Don't hesitate to ask if you have other questions about the process.

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