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Lucas Kowalski

How does unemployment affect the employer in Washington ESD system?

I'm a small business owner in Washington and had to lay off two employees last month due to slow business. They both filed for unemployment benefits and I'm wondering what this means for me as their former employer. I know Washington ESD will contact me about their claims, but I'm not sure what to expect. Will my unemployment tax rates go up? Do I have to respond to anything? I've never dealt with this before and want to make sure I handle everything correctly.

As an employer in Washington, you'll receive a 'Notice of Application for Benefits' from Washington ESD for each claim filed. You have 10 days to respond if you want to contest the claim or provide additional information. Your unemployment tax rate (SUTA) can be affected by benefit charges to your account.

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Thanks for the info! Do I need to respond even if I don't contest the claims? Both layoffs were legitimate due to lack of work.

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If you agree with the claim and the separation was due to lack of work, you don't have to respond. However, it's good practice to respond confirming the details to avoid any delays in processing.

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Your unemployment tax rate is based on your 'experience rating' which includes the benefits charged to your account. More claims = higher rates in future years. But if the layoffs were truly due to lack of work and not misconduct, the claims should be approved and charged to your account.

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How much can the tax rate increase? I'm worried about the financial impact on my business.

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It varies based on your industry and claim history. New employers start at a standard rate, but established businesses see rate adjustments annually. Washington ESD sends rate notices each year.

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I had trouble reaching Washington ESD when I needed to contest a fraudulent claim last year. Spent hours on hold. Found this service called Claimyr at claimyr.com that helped me get through to an actual agent quickly. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Made the whole process much less stressful.

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That's interesting - I didn't know there were services to help with Washington ESD calls. How does it work exactly?

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Basically they handle the calling process for you and connect you when an agent is available. Saved me from sitting on hold for hours trying to resolve the issue.

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Keep all your documentation about the layoffs - termination notices, business records showing the downturn, anything that proves the separation was due to lack of work. Washington ESD might request this information during their investigation.

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Good point. I have the termination letters and financial records showing the business decline. Should I send these proactively?

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Only send what they specifically request. But having it organized and ready will help if they do ask for documentation.

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been through this before as a business owner... the worst part is not knowing what to expect. washington esd will definitely contact you about each claim. just be honest about the circumstances and respond promptly to any requests.

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Did your tax rates go up significantly after the claims?

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mine went up some but not drastically. depends on your overall claim history and how many employees you have. the rate adjustment happens annually.

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Don't forget that if your former employees find new work quickly, it reduces the total benefits charged to your account. Encouraging them to actively job search (which they're required to do anyway) can help minimize the impact.

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That's a good point. I've actually heard about some job openings that might be good fits for them. Is it appropriate to pass along those leads?

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Absolutely! Helping former employees find work is always appreciated and it's good for everyone involved.

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The whole employer side of unemployment is confusing. I wish Washington ESD made it clearer what employers need to do. Their website has info but it's scattered all over the place.

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The employer handbook on their website is actually pretty comprehensive once you find it. Look under 'Employer Services' on the Washington ESD site.

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Thanks, I'll check that out. Sometimes their site navigation is not the most user-friendly.

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One thing to watch out for - if Washington ESD has questions about the separation, they might schedule a fact-finding interview with you. This is normal but can be stressful if you're not prepared.

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What kind of questions do they typically ask in these interviews?

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Usually about the circumstances of the layoff, whether it was performance-related, if there was any misconduct, availability of other work, etc. Just be factual and honest.

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Also worth noting that Washington ESD charges interest on unpaid unemployment taxes, so make sure you stay current on your quarterly payments even if your rate goes up.

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Good reminder. I'll make sure to keep track of any rate changes when they send the annual notice.

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If you ever need to contest a claim in the future, make sure you understand the difference between 'misconduct' and 'lack of work.' The burden of proof is on the employer to show misconduct, and it has to meet specific legal standards.

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This is important - I've seen employers try to contest legitimate layoffs thinking it would save money, but it usually backfires and creates more problems.

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Exactly. Only contest claims where there's clear evidence of disqualifying misconduct. Otherwise you're just delaying benefits for people who deserve them.

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Just remembered - if Washington ESD determines your former employees are eligible, they'll send you a 'Notice of Benefit Charges' showing what's being charged to your account. Keep these for your records.

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How often do they send these notices?

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Usually quarterly along with your tax statements. But you can also check your account online through their employer portal.

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as someone who's been laid off before, I appreciate employers who handle this process professionally. your former employees are probably stressed enough without having to worry about their unemployment claims being contested unnecessarily.

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That's definitely my goal. These were good employees and the layoffs were purely due to business circumstances beyond anyone's control.

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One more tip - if you're planning to recall these employees when business improves, you can put them on 'standby' status instead of full layoff. This keeps them connected to your business while they receive benefits.

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Is it too late to do that now, or could I still set up standby status?

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You'd need to contact Washington ESD to see if it's possible to change their status. Standby has specific requirements about recall dates and maintaining the employment relationship.

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The unemployment system is designed to be a safety net for workers while spreading the cost among employers. It's not personal - just part of doing business in Washington state.

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You're right. I know it's the right thing and I'm glad the system exists for my former employees. Just want to make sure I handle my part correctly.

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Had a similar situation with my restaurant last year. When I needed to speak with Washington ESD about some claim details, I used Claimyr to get through to an agent. Much easier than spending half my day on hold trying to get answers.

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That seems like it could be really helpful for business owners who can't afford to spend hours waiting on hold.

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Exactly - time is money when you're running a business. It was worth it to get my questions answered quickly.

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Don't forget that unemployment benefits are taxable income for your former employees. They can choose to have taxes withheld from their benefits, but that's their decision, not yours as the employer.

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Good to know, though I assume that's between them and Washington ESD.

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The whole process seems overwhelming but it's actually pretty straightforward once you go through it. Washington ESD handles most of the work - you just need to respond when they contact you.

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That's reassuring. I was worried there would be a lot of ongoing paperwork and responsibilities.

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Nope, mostly just responding to their initial notice and keeping your records organized. The system is designed to work without too much employer involvement for straightforward cases.

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If your business recovers and you're hiring again, consider reaching out to your former employees first. Washington ESD likes to see employers making good faith efforts to bring people back when possible.

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Definitely planning to do that. They were good workers and I'd be happy to have them back when things turn around.

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One last thing - make sure your business address and contact info is current with Washington ESD. You don't want to miss important notices because they went to an old address.

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Good reminder. I'll double-check that in their employer portal. Thanks to everyone for all the helpful advice!

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You're welcome! Sounds like you're approaching this the right way. Your former employees are lucky to have had a considerate employer.

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This thread has been really helpful. I'm in a similar situation and was worried about the impact on my business. Good to see other employers sharing their experiences.

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Glad it helped! It's definitely stressful when you're going through it for the first time.

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