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Abby Marshall

How does unemployment affect businesses - Washington ESD employer perspective

I'm a small business owner in Washington and I've been dealing with several unemployment claims from former employees over the past year. The Washington ESD keeps sending me notices about benefit charges against my account and I'm trying to understand how this whole system impacts my business financially. My unemployment insurance rates seem to keep going up every quarter. Does anyone know how Washington ESD calculates these employer costs and what I can do to manage them? I've had to lay off 3 people due to reduced demand and now I'm worried about the long-term cost implications for my business.

Washington ESD uses an experience rating system for employers. Your UI tax rate is based on your claim history - more claims filed against your account means higher rates. The base rate starts around 0.5-1% but can go up to 5.4% of wages depending on your experience. You should contest any fraudulent or ineligible claims to protect your rating.

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Thanks for the info. How do I contest claims? I had one employee who quit but still filed for benefits.

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You need to respond to all Washington ESD notices within 10 days. If someone quit voluntarily or was fired for misconduct, you can contest it by providing documentation to ESD.

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i run a restaurant and my rates went through the roof last year. had to let people go during covid and now paying the price. washington esd doesn't care about small businesses

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Same here. The system feels rigged against small employers.

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Actually there are relief programs available. Check with your industry association or SBA for resources.

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Been dealing with this for years. The key is documentation and quick response to Washington ESD. I keep detailed records of why each employee left - resignation letters, performance reviews, attendance records. When someone files a claim, I immediately submit my response with evidence. It's saved me thousands in higher tax rates.

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What kind of documentation works best? I don't always get resignation letters.

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Email communications, witness statements, time records showing no-shows, anything that shows the reason for separation. Even text messages can help.

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This is so helpful. I never knew documentation was this important for Washington ESD cases.

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If you're struggling to reach Washington ESD about employer issues, I found this service called Claimyr that helps connect you with ESD agents by phone. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Really helped me get through when I needed to discuss a complex claim situation.

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Is this legit? I've been trying to call ESD for weeks about a contested claim.

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Yeah it's real. They basically handle the calling and waiting for you, then connect you when an agent picks up. Saved me hours of frustration.

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Anything is better than spending half my day on hold with Washington ESD. Thanks for sharing this.

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Also important to understand that unemployment benefits stabilize the economy during downturns. When people lose jobs, they still have some income to spend, which helps other businesses stay afloat. It's not just a cost - it's part of the social safety net that keeps consumer spending from completely collapsing.

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easy to say when you're not the one paying the bills

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I am a business owner. I'm just looking at the bigger picture. Without UI benefits, laid-off workers would have zero spending power.

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Good point. My customers who are unemployed can still afford to eat out occasionally because of their benefits.

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Washington ESD also provides reemployment services that can help reduce the duration of claims. The faster people get back to work, the less it costs everyone. Work Source offices offer job placement assistance.

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Do I need to report if I rehire someone? Does that affect my rates?

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Rehiring someone ends their claim, which is good for your experience rating. You don't need special reporting for that.

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One thing people don't realize is that unemployment fraud hurts employers too. When someone files a fake claim using your business info, it can mess up your account and rates. Always verify any claims you receive notices about.

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How would I know if it's fraud?

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If you get a notice about someone you never employed or who never worked the dates listed, that's fraud. Report it immediately to Washington ESD.

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I had this happen twice last year. Fake claims with random names. ESD was actually pretty good about removing them once I reported it.

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The timing of layoffs can affect your costs too. If you know you'll need to reduce staff, doing it all at once might be better than dragging it out over months. Multiple small layoffs can look worse to Washington ESD than one restructuring event.

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Interesting. I was thinking about reducing hours first, then maybe layoffs later.

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Reduced hours might qualify people for partial unemployment benefits too. Check with an employment attorney about your options.

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Yeah, Washington allows partial benefits if hours are cut significantly. Could cost you either way.

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From a customer service perspective, having unemployment benefits available makes people more willing to leave bad jobs, which means better quality employees stay in the market. It's not all negative for businesses.

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tell that to my tax accountant

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I'm just saying there are indirect benefits. Better worker mobility means you can find better employees too.

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Has anyone tried the Washington ESD employer workshop? They supposedly explain all this stuff about rates and claims management. I keep meaning to sign up but never have time.

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I went to one last year. Pretty basic info but good for new employers. They cover the appeal process and rate calculations.

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Worth the time investment?

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If you're new to dealing with unemployment claims, yes. If you've been doing this for years, probably not.

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The real issue is that Washington ESD doesn't distinguish between businesses that lay people off due to economic conditions versus those that have high turnover due to bad management. Both get penalized the same way.

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That's not entirely true. They do consider the reason for separation when determining benefit eligibility, which affects your account charges.

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But the rate calculation is still based on total claims filed, regardless of why people were let go.

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Fair point. The system could be more nuanced for sure.

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Another thing to watch out for - if you're a seasonal business, Washington ESD has special rules. You can apply for seasonal employer status which might help with rate calculations if you regularly hire and lay off workers.

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I run a landscaping business so this might apply to me. Where do I find more info about seasonal status?

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Contact Washington ESD employer services. They have specific applications for seasonal designation. It's not automatic.

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One positive aspect is that unemployment benefits help maintain consumer demand during recessions. When I had to lay off workers in 2020, knowing they had some income helped me feel less terrible about it. And some of them were still able to be customers occasionally.

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That's a good way to look at it. The system provides some stability for everyone.

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True, but it's still expensive for small businesses who can least afford it.

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If you need to discuss specific claim situations with Washington ESD, that Claimyr service I mentioned earlier really does work. I used it again last month when I had questions about a contested claim. Much easier than trying to get through their phone system on your own.

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I'm definitely going to try this. Spent 4 hours on hold yesterday and got disconnected.

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Same experience here. Washington ESD phone system is impossible during busy times.

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Don't forget that Washington ESD offers online tools for employers now. You can view claims, submit protests, and check your account status through their secure portal. Much faster than calling or mailing stuff.

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Is this the same login as the regular ESD website?

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No, there's a separate employer portal. You need to register with your state employer ID number.

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The employer portal is actually pretty user-friendly compared to their old system.

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Something else to consider - unemployment claims can be a red flag for other issues in your business. High turnover might indicate problems with management, training, or workplace culture that are costing you money beyond just the UI taxes.

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sometimes people just don't want to work

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True, but if you're seeing patterns, it's worth examining. Exit interviews can help identify issues before they become expensive problems.

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Good point. We started doing exit interviews and found out our training program was terrible. Fixed that and turnover dropped.

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For anyone dealing with Washington ESD employer issues, make sure you understand the difference between misconduct and poor performance. Misconduct can disqualify someone from benefits, but poor performance usually doesn't. This affects whether claims get charged to your account.

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What counts as misconduct?

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Willful violation of company policies, repeated tardiness after warnings, theft, violence, etc. Just being bad at the job usually isn't misconduct.

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Exactly. Washington ESD has specific criteria for misconduct. You need solid documentation to prove it.

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I've found that being proactive about Washington ESD communications saves money in the long run. Respond to every notice, contest questionable claims, and keep good records. It's extra work but worth it when your rates stay low.

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This whole thread has been really helpful. I had no idea there was so much to managing unemployment costs as an employer.

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It's definitely more complex than most people realize. But once you understand the system, you can work with it instead of against it.

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Last thing - if you're really struggling with Washington ESD employer issues and need to talk to someone, that Claimyr service has been a lifesaver for me multiple times. Check out their demo video to see how it works. Much better than the frustration of trying to get through on your own.

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Thanks for mentioning this multiple times. I was skeptical at first but clearly it works for you.

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Yeah, I only recommend things that actually help. The Washington ESD phone system is just broken for busy periods.

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Overall, unemployment affects businesses through direct costs (UI taxes), indirect costs (administrative time), and broader economic effects (consumer spending, worker mobility). It's expensive but serves important economic functions. The key is managing your piece of it as efficiently as possible.

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Great summary. This discussion has really opened my eyes to all the different angles of this issue.

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Agreed. Understanding the full picture helps make better business decisions about staffing and layoffs.

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