How much does an unemployment claim cost an employer in Washington ESD?

Employers in Washington pay unemployment insurance taxes based on their experience rating. When you file a claim, it gets charged to your former employer's account, which can affect their tax rate for future years. The exact cost depends on their payroll size and claim history.

So it's not like they have to pay my benefits directly? It just affects their future tax rates?

It's not a direct cost per claim - Washington ESD uses an experience rating system for unemployment insurance taxes. Your rate depends on your claim history over the past few years. New employers start at a standard rate, then it adjusts based on claims filed against your account.

Exactly. They don't write a check for your weekly benefits. Washington ESD pays those from the unemployment insurance fund, which is funded by employer taxes.

Your unemployment tax rate can range from 0.19% to 5.4% of wages in Washington. Claims against your account push you toward the higher end. I learned this the hard way when I had to let go 3 people during COVID - my rate jumped significantly the following year.

Don't feel guilty about filing! You and your employer both paid into this system. The unemployment insurance tax rate in Washington ranges from 0.13% to 6.13% of taxable wages, depending on the employer's experience rating.

If you're really concerned about managing costs and staying on top of your UI account, I found this service called Claimyr that helps with Washington ESD communications. They have a demo at https://youtu.be/7DieNd3C7zQ that shows how they can help you reach ESD agents when you need to discuss claim details or disputes. Check out claimyr.com - might be useful for staying informed about your account status.

wait so employees pay into it too? i thought it was just employers

Remember you can contest claims if the termination was for misconduct or if the employee quit voluntarily. If Washington ESD rules in your favor, it won't count against your experience rating. But you need to respond quickly to their requests for information.

In Washington, only employers pay the unemployment insurance tax. Some states have employee contributions, but not here.

The actual dollar impact depends on your payroll size. For a small business with maybe $200k annual payroll, going from the minimum rate to mid-range could cost you an extra $3,000-4,000 per year. That's spread across quarterly payments though.

Also worth noting that if you're a nonprofit or government entity, you might have the option to reimburse Washington ESD directly for benefits paid instead of paying the standard UI taxes. That's a different cost structure entirely.

One more thing - new employers get a 2-3 year period where their rate is somewhat protected while Washington ESD builds your experience history. So you won't see dramatic rate increases immediately even if you have early claims.

I've been trying to get specific information about this from Washington ESD for weeks. Their phone lines are impossible! I need to understand how my layoff will impact my old company's rates because they're considering rehiring me when business picks up.

You should try Claimyr.com - they helped me get through to an actual Washington ESD agent when I couldn't reach anyone. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Way better than sitting on hold forever.

I use an HR service that handles all our Washington ESD responses and UI tax filings. Might be worth considering if you're not comfortable managing it yourself - they know all the deadlines and requirements.

Don't forget you're also paying into other programs through your UI taxes - like the family leave program. The rates are separate but it's all part of your overall employment tax burden in Washington.

ugh why is running a business so complicated with all these taxes and rates and reporting requirements?? seems like you need a degree just to figure out what you owe

Keep in mind your rate can also go DOWN if you have a good track record with no claims for several years. I've seen my rate drop to near the minimum after 5+ years with no layoffs.

Just remember to budget for the possibility of higher rates if you're in an industry with typical seasonal patterns or economic sensitivity. Better to overestimate your UI tax costs than get surprised.

The key takeaway is that unemployment claims aren't a direct expense but they definitely impact your ongoing business costs through the tax rate system. Plan accordingly and stay engaged with the process.

Never heard of that but I'm desperate at this point. The hold times are ridiculous.

I used Claimyr last month when I had adjudication issues. Got connected to someone at Washington ESD within an hour instead of calling for days.

The cost isn't just about taxes though. Employers also spend time and money responding to Washington ESD requests for information about former employees' claims. They have to provide wage data, separation details, and sometimes participate in hearings.

I hadn't thought about the administrative costs. That makes sense though.

Yeah my HR department at my last job spent hours dealing with unemployment stuff. It's not just the tax impact.

Here's the thing - employers with higher turnover and more claims get hit with higher tax rates. A single claim might increase their rate by 0.1% to 0.5% depending on their history and payroll size. For a small business, that could be hundreds or thousands of dollars annually.

Wow, I didn't realize it could be that much. Now I feel terrible.

Don't feel bad! If they laid you off or fired you without cause, that's on them. The system exists for exactly this reason.

Exactly. You paid into this system through your work. It's literally insurance for situations like this.

I work in payroll and can tell you that most employers budget for unemployment tax increases. It's just part of doing business. Don't let guilt stop you from filing if you're eligible.

This is reassuring. I was worried I was being selfish by filing.

Not at all. The whole point is to provide income support when people lose jobs through no fault of their own.

My employer tried to contest my claim to avoid the cost impact. Washington ESD still approved it because the separation was clearly involuntary. Employers can't just avoid costs by fighting legitimate claims.

How long did the contest process take? I'm worried my employer might try the same thing.

About 3 weeks for the initial determination, then another 2 weeks after they responded. My benefits were approved and I got back pay.

If you need help dealing with a contested claim, that Claimyr service someone mentioned earlier might be useful for getting through to Washington ESD agents.

The unemployment tax system is designed to be self-regulating. Employers who provide stable employment and rarely have claims get rewarded with lower rates. Those with high turnover pay more. It encourages good employment practices.

That actually makes a lot of sense from a policy perspective.

Yeah, it's like car insurance - better drivers pay less, risky drivers pay more.

STOP feeling guilty about this! If your employer didn't want to deal with unemployment costs, they shouldn't have let you go. This is literally what the system is for!!

Seriously! The whole point is income replacement when you lose your job.

You're right. I guess I just needed to hear that from other people.

For what it's worth, large employers often barely notice the impact of individual claims. It's really small businesses with just a few employees where a single claim can make a noticeable difference in their tax rate.

My old job had like 200 employees so I guess my claim won't be a big deal for them.

Probably not. Larger employers usually have multiple claims happening and it all averages out.

I tried calling Washington ESD to get specific numbers on how employer rates are calculated but could never get through. The automated system doesn't have this kind of detailed information either.

Have you tried that Claimyr thing people mentioned? Might be worth it if you really need to talk to someone at Washington ESD.

I'll look into it. Getting actual information from Washington ESD seems impossible otherwise.

Bottom line: employers know unemployment costs are part of operating a business. If they can't handle occasional UI claims, they shouldn't be in business. File your claim and don't look back.

Harsh but true. It's a cost of doing business.

Plus they get tax benefits for having employees in the first place, so it balances out.