How much do employers have to pay for unemployment benefits in Washington?

So if I pay someone $50,000 a year, I'd owe about $1,350 in unemployment taxes for that employee?

Exactly. It's calculated quarterly and you pay it with your other payroll taxes.

Oh interesting, I didn't know it varied by industry. I'm planning a tech consulting business.

Tech should be on the lower end since you probably won't have many layoffs. But it takes a few years to build up that good experience rating.

Thanks! I'll check that out. The Washington ESD website is pretty confusing for new employers.

Never heard of that service but anything that helps you actually talk to someone at Washington ESD sounds useful

Ugh, so there are multiple rates? This is getting complicated.

Yeah, your total rate is your experience rate plus the social cost. Washington ESD sends you a rate notice each year with the breakdown.

In Washington, yes, it's entirely employer-funded. Some states have employee contributions but not here.

Huh, I always wondered why nothing came out of my paycheck for unemployment

Good point, I should factor this into my startup costs. Did you have any issues with the initial registration?

The registration was pretty straightforward online, but understanding the rate calculations took some time

So you only pay unemployment tax on the first $68,500 of each employee's wages?

Right, anything over that is exempt from unemployment tax. But most small businesses won't hit that limit anyway.

That's a huge difference from the starting rate! How long did it take to get that low?

About 3-4 years of clean history. Washington ESD looks at your claims experience over a rolling period.

Good to know. I was planning to use mostly contractors but maybe I should reconsider some of those relationships.

Yeah the ABC test in Washington is pretty strict about who can be a contractor

Yes, I believe the minimum is around 0.3% but don't quote me on that. The maximum is much higher, like 7% or more for problem employers.

I think you're right about the minimum. My company has been at 0.4% for years even with perfect history.

That's really helpful! So documentation matters even for the tax side, not just if there's an appeal.

Exactly. Washington ESD reviews each claim and if you can show the person wasn't eligible, it won't impact your rates.

Two hours?! That's crazy. I'll definitely check out Claimyr if I need to talk to someone.

The phone lines are brutal. I've had better luck with their online contact form but it takes days to get a response.

When are the quarterly deadlines? I want to make sure I get this on my calendar.

End of April, July, October, and January. Same as most other quarterly business filings.

Yeah and they can collect for up to 26 weeks normally. That adds up fast if you have multiple claims.

Exactly why they need adequate funding from employers. It's insurance for the whole system.

Washington ESD has a basic calculator on their website but it's not the most user-friendly. Your payroll service should be able to calculate it automatically though.

I'll have to dig around their site more. Thanks for all the info everyone!

My business shouldn't be seasonal but good to know there are options for different types of employers.

Yeah construction and agriculture have some different rules because of the nature of those industries

That's a good rule of thumb. Thanks everyone for all the help! This thread has been super informative.

Agreed, this is way more helpful than the Washington ESD website FAQs

Oh great, another tax I hadn't thought about. Is FUTA a flat rate at least?

FUTA is 6% but you get a credit for paying state unemployment taxes, so it's usually just 0.6% effectively

Yikes! I guess that makes sense though - more claims means higher costs for the system.

Yeah the trust fund got depleted and they had to rebuild it somehow. Hopefully we don't see another spike like that anytime soon.

I'm definitely going to try them if I run into issues. Seems like a lot of people here have had good experiences.

Anything beats sitting on hold for hours. Time is money when you're running a business.

Great summary! One thing I'd add is don't wait until tax time to set up your unemployment account with Washington ESD. You need to register as soon as you have your first employee, even before you pay them. The penalties for late registration can be steep. Also, if you're doing payroll yourself, make sure you understand the difference between regular wages and things like bonuses or commissions - they might be treated differently for unemployment tax purposes.