How does paying unemployment affect the employer in Washington ESD system?

So if more people from my company file claims, their tax rate could go up next year?

Exactly. Companies with higher claim rates pay higher UI tax rates. It's designed to encourage employers to avoid layoffs when possible.

Don't feel guilty! You earned those benefits by working and paying taxes. That's literally what unemployment insurance is for.

That's what I figured too. We all contributed to this system while we were working.

How long does it take for their rate to change? Is it immediate or does Washington ESD review it annually?

Washington ESD reviews employer tax rates annually. So claims filed this year would affect their rate for next year's payroll taxes.

This is why some employers fight unemployment claims even when the layoff was legitimate. Higher rates mean more costs for them.

Never heard of that service. Does it actually work for getting through to Washington ESD?

Yeah, they handle the calling and waiting for you, then connect you when an agent picks up. Saved me probably 3-4 hours of hold time.

That's inappropriate of them to ask. You have every right to file for benefits you've earned through your work history.

Some employers definitely get aggressive about this stuff. Stand your ground - you earned those benefits.

Not directly. They pay unemployment taxes to Washington ESD based on their payroll. Washington ESD then pays your benefits from that fund.

ok that makes more sense. so its not like they write a check for my specific claim

That's very considerate of you, but remember - unemployment insurance exists for exactly this situation. You shouldn't feel bad about using it.

Plus if they had to lay people off, they probably already factored in the potential UI tax increases into their planning.

Makes sense as an incentive system. Rewards companies that try to keep their workforce stable.

Yes, Washington ESD uses industry classifications as part of the rate calculation. Construction companies typically pay higher rates than office-based businesses, for example.

ah ok that makes sense since some industries have more seasonal layoffs

In my case it was clearly a layoff due to budget cuts, so hopefully they won't contest it.

Layoffs are usually pretty straightforward. It's the quit/firing situations that get messy.

That's a significant jump, but during COVID there were special provisions that were supposed to prevent pandemic-related layoffs from affecting experience ratings as much.

Yeah I think they got some relief but not complete protection from the rate increases.

Yes, Washington ESD sends employers a notice when a claim is filed against their account. They have a chance to provide information about the separation.

Got it. So they know about it but can't stop legitimate claims.

How much does something like that cost though?

Worth checking out their site - focus should be on the time savings rather than cost. When you need answers from Washington ESD, it's invaluable.

Same here! Makes me feel better about filing my claim knowing it's not directly coming out of my old company's pocket.

Wow, 6% is a lot. That would definitely make employers think twice about layoffs.

That's for employers with really high claim rates. Most stable companies pay much lower rates.

That seems fair. Companies shouldn't be penalized for things completely out of their control.

Which is exactly how the system is designed to work - creating financial incentives for employment stability.

exactly. though sometimes layoffs are unavoidable and the UI system is there as a safety net for workers

Agreed! This has been really informative. Makes the whole system make more sense.

Good to know there are options for actually reaching someone at Washington ESD when needed.

Yeah the regular phone system is pretty much impossible during busy periods. Having a service handle the waiting makes a huge difference.

That's exactly what I needed to hear. Filing my claim tomorrow. Thanks everyone!