Does your previous employer pay for unemployment benefits in Washington ESD?

Your employer doesn't pay for your specific benefits directly. Washington employers pay unemployment insurance taxes to Washington ESD throughout the year based on their payroll. It's like a pool that funds everyone's benefits. Your individual claim doesn't come out of your employer's pocket.

yeah employers pay taxes quarterly to fund the unemployment system. its called SUTA - state unemployment tax act. they pay based on how much they pay employees

I was in a similar situation and had trouble getting through to Washington ESD to ask these kinds of questions. Spent hours calling their main number and kept getting hung up on or put on hold forever. Finally found this service called Claimyr (claimyr.com) that helps you actually reach an ESD agent. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Made it so much easier to get my questions answered about how employer taxes work.

Just to clarify the tax structure - Washington employers pay both state unemployment tax (SUTA) and federal unemployment tax (FUTA). The state tax funds your regular UI benefits through Washington ESD. The federal portion funds extended benefits and administrative costs. Your employer's tax rate depends on their 'experience rating' - companies with more former employees claiming benefits pay higher rates.

I think some people get confused because employers CAN contest unemployment claims. If they think you were fired for misconduct or quit voluntarily, they might fight your claim. But that doesn't mean they're paying for it directly.

btw the money comes from a trust fund that all the employer taxes go into. washington esd manages it. during covid it got depleted and they had to borrow from feds but its back to normal now

Your benefits are based on what you earned at that job though. So in a way, your employer did 'pay' for your unemployment by paying you wages that qualified you for benefits. But the actual benefit payments come from the state trust fund.

I remember being nervous about this too when I first filed. Felt guilty like I was costing my old boss money. But unemployment insurance is exactly that - insurance. You wouldn't feel bad about using car insurance after an accident that wasn't your fault.

The employer tax rates vary by industry too. High-turnover industries like restaurants or retail pay higher rates than stable industries like government or education. It's all about risk pooling.

One thing to remember is that you EARNED this benefit by working. It's not welfare or charity. You and your employer both contributed to the system that makes these benefits possible.

HONESTLY the whole system is so confusing when you first deal with it. I had similar questions and Washington ESD's website doesn't explain it very clearly. When I needed to actually talk to someone, regular calling was impossible. Used that Claimyr service someone mentioned earlier and it was a game changer for getting through to an actual person who could explain how employer taxes work.

Just file your claim! You were laid off through no fault of your own, you're eligible, and the system exists for exactly this situation. Your employer knew unemployment taxes were part of doing business when they hired you.

For what it's worth, most employers understand that unemployment is part of the business landscape. The good employers won't hold it against you if you need to file after a legitimate layoff.

The key thing is that Washington ESD determines eligibility, not your employer. Even if your employer contests (which is rare for legitimate layoffs), ESD makes the final decision based on the facts.

I've been through this whole process and honestly wish I'd understood the funding structure from the beginning. Would have saved me a lot of unnecessary stress about 'costing' my employer money.