How does an employee collecting Washington ESD unemployment affect the employer - tax implications?

Yes, your employer's unemployment tax rate can be affected by claims, but it's not as simple as they're making it sound. Washington ESD uses an experience rating system where employers who have more claims filed against them may see higher tax rates in future years. However, if you were legitimately laid off due to budget cuts, that's exactly what unemployment insurance is designed for.

Your employer is trying to manipulate you into not filing. I've seen this before where companies pressure former employees not to file claims to keep their tax rates low. File your claim - you paid into this system through your work.

I had trouble getting through to Washington ESD when my former employer contested my claim for similar reasons. If you're having issues reaching them about this, I found claimyr.com really helpful for getting connected to an actual agent. They have this video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. It saved me hours of trying to call on my own.

The employer tax rate calculation is based on their "experience rating" which looks at the total amount of benefits paid out to their former employees over a certain period. More claims = potentially higher rates. BUT this is spread out over time and many factors affect it. A single legitimate claim won't dramatically impact a company's rates unless they're very small.

ugh this is so frustrating!! my last employer tried the same guilt trip on me when I got laid off. like sorry but I need to eat and pay rent?? they should have thought about unemployment costs before they decided to lay people off

From a business perspective, unemployment insurance is just another cost of doing business, like workers' compensation. Responsible employers budget for this and understand that layoffs will result in claims. Your employer's reaction suggests they either don't understand their own obligations or they're being manipulative.

I'm going through something similar where I'm worried about filing because my old boss made comments about how expensive it would be. But reading these responses I think I need to just file and stop worrying about their business problems.

The employer contribution rates are calculated annually by Washington ESD based on multiple factors including the total benefits charged to their account, their payroll size, and the overall health of the unemployment trust fund. One claim rarely moves the needle significantly unless it's a very small employer.

File your claim and don't look back. If they contest it without valid grounds, that's on them for wasting everyone's time including Washington ESD's resources.

Just to add some concrete numbers - even if your claim results in a modest increase to their tax rate, we're talking about fractions of a percent on their total payroll. For a company paying $100,000 in wages annually, an increase from 1% to 1.2% would cost them an extra $200 per year. That's the cost of doing business when you lay people off.

also like... if they're so worried about unemployment costs maybe they shouldn't be laying people off in the first place?? just saying

One more thing to consider - if your employer contests your claim without valid grounds, Washington ESD may actually penalize them or require them to pay additional fees. So their threat to contest might backfire on them if your layoff was legitimate.

Just wanted to mention again that if anyone runs into problems with their employer contesting claims or needs to speak with Washington ESD about employer disputes, claimyr.com made it so much easier to get through to someone who could help resolve my situation. Worth checking out their demo video if you're struggling with the phone system.

Bottom line: file your claim if you're eligible. Your employer's financial concerns are not your responsibility, especially when you were laid off through no fault of your own.

For what it's worth, employers who properly manage their workforce and avoid unnecessary layoffs typically maintain lower unemployment tax rates over time. Your former employer's high emotional reaction suggests they may not have been managing this aspect of their business very well.

Thanks for posting this question. I learned a lot from the responses and it helped me understand my own situation better too.

One final thought - document everything your employer said about discouraging you from filing. If they do contest your claim, that information could be relevant to show they're acting in bad faith rather than based on legitimate grounds.

Hope everything works out smoothly with your claim. You're doing the right thing by filing - that's exactly what the unemployment system is designed for.

Update us on how it goes! And remember, if you need help navigating any part of the Washington ESD system, resources like claimyr.com are available to help you get connected with the right people.

good luck with your claim!! don't let them intimidate you