Self employed pay unemployment tax - Washington ESD eligibility question

So I'm basically screwed if my business fails? That seems really unfair.

there might be an option to opt in but i think you have to do it before you need it

How do I apply for this elective coverage? Is there a deadline or specific forms I need to fill out?

You need to file an application with Washington ESD within 30 days of when you want coverage to begin. There's a specific form and you'll need to report your income quarterly.

wish i had known about this earlier, trying to contact washington esd now but their phone lines are always busy

Never heard of Claimyr before. Is it legitimate? I'm desperate to get through to someone at Washington ESD.

Yeah it's legit, they basically help you get through the phone queue. I was skeptical at first but it actually worked and I got my questions answered about self-employed coverage.

how much does that cost tho? sounds like another service trying to make money off people who cant reach government agencies

what percentage are we talking about here? is it worth it financially?

The rate varies based on your industry and experience rating, but you're looking at around 2-6% of your reported income. Definitely worth it if you're in a volatile industry.

Yes, if you're filing 1099s instead of getting W-2s, you're generally considered self-employed for unemployment purposes. The companies you work for aren't paying unemployment tax on your behalf.

great so ive been working for 3 years thinking i was covered and im not

Same boat here. Found out the hard way when I tried to file for benefits last year.

totally agree! the whole UI system was designed for traditional employees and everyone else gets screwed

I understand the frustration, but the system requires advance planning. You can't buy car insurance after you crash, same principle applies here.

There is a minimum annual income requirement - I think it's around $1,000 per year. The premiums are calculated based on what you report quarterly, so variable income is handled through the reporting process.

That's actually pretty reasonable. I definitely make more than $1,000 even in bad years.

That's exactly why I ended up using Claimyr. Their system basically holds your place in line and calls you back when an agent is available. Saved me so much frustration.

might have to try that, this is ridiculous

That's exactly the kind of situation I'm worried about. How long did it take to get approved for benefits once you filed your claim?

Pretty standard process, took about 2 weeks. The main thing is making sure you've been paying premiums for at least a year before you need to claim.

LLC owners can elect coverage, but it depends on how you're taxed. If you're taxed as a sole proprietor (single member LLC), then yes. If you're taxed as an S-corp and paying yourself a salary, you might already be covered as an employee.

im single member llc so sounds like i need to look into this elective coverage option

exactly! and then people wonder why small businesses struggle so much

There are other safety net programs available, but unemployment insurance is definitely the most comprehensive for income replacement.

That's what I'm trying to avoid. Better to pay the premiums now while I can afford them than regret it later.

exactly, learn from my mistake

Yes, you can terminate elective coverage, but there are specific procedures and timing requirements. You typically need to give written notice to Washington ESD.

good to know, makes me feel better about signing up

Same here! Going to start the application process this week.

glad this helped someone else too, i was completely clueless about all this

getting through to someone is the hard part though

That's where Claimyr comes in handy. I've recommended it to several other business owners who were having trouble reaching Washington ESD.

That's fine, I already do quarterly taxes anyway. One more form isn't going to kill me.

the reporting requirements are pretty straightforward if youre already doing business taxes