How much does a company pay for unemployment in Washington ESD?

Companies pay unemployment taxes to Washington ESD based on their payroll and claims history. It's not a simple flat rate - the tax rate varies depending on your industry and how many former employees have filed UI claims against your account.

The Washington ESD unemployment tax is calculated on the first $62,500 of each employee's wages for 2025. Your rate depends on your 'experience rating' which is basically how many of your former employees have collected benefits.

I run a construction company and our rate is pretty high because of seasonal layoffs. If you're in an industry with stable employment year-round, you'll probably get a better rate from Washington ESD.

If you're having trouble getting through to Washington ESD for employer questions, I found this service called Claimyr (claimyr.com) that helps people reach ESD agents. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you need to talk to someone about your tax rates.

The base rate for new employers in Washington is around 2.7% but it can go up to 5.4% or higher if you have a lot of claims. There's also additional taxes for things like family leave that get added on top.

omg the unemployment system is so complicated from both sides! i filed a claim last year and it took forever, now hearing about all these employer complications too

One thing to watch out for - if an employee quits voluntarily or gets fired for misconduct, they shouldn't be able to collect UI benefits. But sometimes Washington ESD approves claims anyway and it still gets charged to your account. You have to appeal those decisions.

I worked in HR for years and the Washington ESD employer portal is actually pretty helpful once you figure it out. You can see your tax rate, claims history, and file appeals online.

Just want to point out that unemployment insurance is there to help workers who lose their jobs through no fault of their own. Yes it costs employers money, but it's an important safety net.

wait so if someone gets fired for stealing they can still get unemployment benefits?? that seems wrong

This has been really helpful everyone. It sounds like I should budget around 3% of wages for unemployment taxes as a new employer, and make sure to keep good documentation in case I ever need to contest a claim.

If you ever need to call Washington ESD about your account, definitely check out that Claimyr service I mentioned earlier. The hold times for employer questions can be just as bad as for claimants.

One more tip - when you register as a new employer with Washington ESD, they'll send you information about your assigned tax rate and payment schedule. Make sure to set up quarterly payments so you don't fall behind.

Just to add one more thing - your industry classification matters a lot for your tax rate. Make sure Washington ESD has you classified correctly or you might end up paying more than necessary.

The Washington ESD website has a tax rate lookup tool where you can see the rates for different industry codes. Might be worth checking before you finalize your budget.

Glad to see an employer who's trying to understand the system properly instead of just complaining about it. Your employees will appreciate working for someone who gets it.

One last thing - keep in mind that if you're a seasonal business, you might be able to get a different payment schedule or rate structure. Worth asking Washington ESD about when you register.

this thread has been super educational. i never knew how complicated the employer side of unemployment was!

If you run into problems with Washington ESD down the road, that Claimyr thing mentioned earlier really does work. I used it when I had issues with my own claim and got through to someone right away.

Final piece of advice - establish a good relationship with your local WorkSource office. They can help with hiring and sometimes provide guidance on avoiding layoffs that would increase your unemployment tax rate.