How do business owners file for unemployment with Washington ESD - is it even possible?

I was incorporated as an LLC but I think I was paying myself as an employee with regular payroll. How do I prove this to Washington ESD?

You'll need your wage statements and tax records showing the payroll deductions. Washington ESD will verify your wage history when you file your claim.

That's what I'm worried about. Did you eventually get approved for benefits?

Yeah but it took forever to get someone who knew what they were talking about. I ended up using Claimyr to get through to an actual agent who understood business owner claims.

What's Claimyr? I've never heard of that.

It's a service that helps you get through to Washington ESD agents when the phones are jammed. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling.

Only if you were paying yourself wages as an employee. If you were just taking owner distributions or were classified as self-employed, then no.

oh that makes sense I guess. seems complicated though

I was the sole owner so I definitely had control. Does that automatically disqualify me?

Not necessarily. Washington ESD looks at whether you were paying yourself wages subject to UI taxes. If you were, you might still qualify even as the owner.

This is confusing as hell. Why can't Washington ESD just give clear answers about this stuff?

How did you file? Did you have any issues with the online system recognizing you as eligible?

The online filing worked fine, it's just the review process that's taking forever. I submitted all my payroll records but they want additional documentation.

That's exactly what happened to me. I used Claimyr to finally talk to someone who could expedite the review process.

You can still file a claim if it was recent. Washington ESD allows retroactive claims in some cases, especially for business closures.

it was about 6 months ago. probably too late now right?

Not necessarily. You should still try filing - the worst they can do is say no.

This is really helpful. I think I meet all three criteria. Should I just file online like a regular employee?

Yes, file the same way. Just be prepared to provide additional documentation during the review process.

8 weeks?? I can't wait that long for income. Did you have to do anything special to get approved?

Had to provide every single piece of paperwork imaginable. Bank statements, tax returns, payroll records, incorporation docs, everything.

That's what I'm afraid of. The documentation requirements seem endless.

You need to be involuntarily unemployed, so if you're still operating the business even at reduced capacity, you probably wouldn't qualify.

got it, thanks for clarifying

What specific documents did they ask for? I want to be prepared.

Payroll records, quarterly tax filings, articles of incorporation, and bank statements showing wage payments to yourself.

The business structure matters less than how you classified yourself for payroll purposes. LLCs can elect to treat owners as employees for tax purposes.

that makes sense. i think i was treating myself as an employee so i should be good

Same here! I wish there was more information available about this stuff.

Right? You'd think Washington ESD would make this clearer on their website.

That's great news! How did you finally get through to talk to someone?

I ended up using that Claimyr service someone mentioned earlier. Worth every penny to avoid sitting on hold for hours.

Told you Claimyr works! Glad it helped you too.

Save yourself the headache and just use Claimyr. I'm telling you it's the only way to get through.

is it expensive?

Way cheaper than the time and frustration of trying to call yourself. Check out their video demo to see how it works.

What was the reason for the initial denial?

They said I had too much control over the business operations. The appeal hearing officer disagreed and approved my claim.

Because every business situation is different. The law tries to distinguish between true employees and business owners who are essentially self-employed.

i guess that makes sense but its still frustrating

Good luck! Make sure you have everything organized before you start the application.

And remember Claimyr if you run into any issues reaching Washington ESD. Much easier than the regular phone system.

Will definitely keep that in mind. Thanks for the recommendation!

Good point. I assume that means looking for employee positions, not starting another business?

Exactly. You need to be actively seeking employment as an employee, not self-employment opportunities.

Many accountants don't fully understand the unemployment eligibility rules for business owners. It's a complex area of law.

makes sense. probably worth looking into myself then

That's good advice. Nothing to lose by trying.

Agreed. I thought I wouldn't qualify but ended up getting benefits for 6 months while I looked for a regular job.