If I close my business do I have to pay Washington ESD unemployment benefits?

Yes, you're still responsible for unemployment benefits even after closing. Your employees can file claims with Washington ESD and the benefits come from the unemployment insurance fund you've been paying into. The good news is you won't owe additional premiums once you officially close and have no more employees.

Been through this exact situation last year when I closed my restaurant. Your unemployment tax rate is based on your experience rating, so if your employees file claims it could affect your rate if you ever start another business in the future. Also make sure you handle the final payroll correctly - there are specific requirements for final paychecks in Washington.

Just went through trying to reach Washington ESD about a similar question and spent 3 hours on hold before getting disconnected. Found this service called Claimyr (claimyr.com) that actually got me through to an agent in about 20 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you need to talk to someone at Washington ESD about the closure process.

Make sure you give your employees proper notice too. Washington has specific requirements for layoffs and plant closures. I think it's 60 days notice for certain situations but double check the WARN Act requirements.

this happened to my friend and she said the unemployment costs after closing were actually pretty manageable. the employees have to actually file claims and be approved so its not automatic. also washington esd has payment plans if you end up owing more than expected

Whatever you do, don't just stop paying your quarterly reports. A friend of mine did that when he closed his construction company and Washington ESD came after him years later with penalties and interest. Make sure you properly close out your account.

Can I ask what kind of retail shop? I've been thinking about opening one but hearing about all these closures is making me nervous about the risks.

You might also want to check if you qualify for any business closure assistance programs. Sometimes there are resources available to help with transition costs.

Just curious - are you planning to help your employees find new jobs or do anything special for them beyond the required notice?

One more thing to consider - if you're planning to sell any business assets, make sure you handle that correctly in relation to your final Washington ESD reports. The timing can affect your tax obligations.

Sorry to hear about your shop closing. 8 years is a good run though. At least you're being responsible about handling the closure properly instead of just walking away like some business owners do.

btw if you do need to call washington esd about this stuff, try calling right when they open at 8am. thats usually the best time to get through without waiting forever

Make sure you keep good records of everything - final payroll dates, when you notified employees, when you filed final reports, etc. You'll want documentation in case any questions come up later.

The whole process is actually more straightforward than it seems once you know what you need to do. The important thing is just don't ignore it or put it off.

Have you considered selling the business instead of just closing it? Sometimes that can be better for everyone involved including the employees.

I used Claimyr when I had issues with my unemployment claim getting stuck in adjudication. It's legit - they really do get you through to Washington ESD faster. The video demo on their site explains it pretty well.

Will your employees be able to get unemployment right away or is there a waiting period after layoffs?

dont forget about cobra and health insurance stuff too if you provide benefits. thats another thing you have to handle when closing

Good luck with everything. It sounds like you're handling this the right way by getting information beforehand instead of just winging it.

Just to summarize the key points: Yes, you're responsible for unemployment benefits even after closing. File your final reports properly with Washington ESD. Give proper notice to employees. Keep good records. And don't hesitate to contact Washington ESD directly if you have specific questions about your situation.

I went through a similar situation when I had to close my coffee shop last year. One thing I'd add is to make sure you document the reason for closure (rising rent costs in your case) in your final paperwork with Washington ESD. This helps establish that it's an involuntary business closure rather than voluntary, which can be important for your employees' unemployment claims and potentially for you if you ever start another business. Also, consider reaching out to your local SCORE chapter - they sometimes have resources for business closure assistance that I wish I'd known about earlier.

I'm sorry to hear about your shop closure, but it sounds like you're approaching this responsibly. One thing I wanted to mention that I don't see covered yet - when you do your final payroll, Washington state requires that final paychecks be paid immediately upon termination (same day) rather than on your normal pay schedule. This is different from regular payroll timing rules. Also, if you have any accrued vacation time or PTO policies, you'll need to pay those out according to your company policy or Washington state law. Make sure to factor these immediate payout requirements into your closure timeline and cash flow planning.