Trying to understand how much unemployment insurance costs for employers in Washington

That's actually not as bad as I thought it would be. Is that rate the same for all new businesses or does it depend on the type of work?

The base rate is the same, but your industry classification can affect things. Construction and some other high-turnover industries might have different calculations. You'll get assigned a rate class based on your business type.

How hard was it to get through to someone at Washington ESD? I've heard their phone system is pretty backed up.

Oh man, it was brutal. Spent hours on hold, got disconnected multiple times. Actually ended up using this service called Claimyr (claimyr.com) that helped me get through to an actual person. They have a video demo at https://youtu.be/7DieNd3C7zQ that explains how it works. Saved me so much time and frustration.

That makes sense from a policy perspective. Do you know how long it takes before they start using your actual experience instead of the standard rate?

Typically it's after you've had employees for at least 4 quarters and have some claims history to evaluate. Could be 18-24 months before you see your first experience-rated adjustment.

Just be warned - if you have to let someone go and they file for unemployment, it can really impact your rates for years. I learned this the hard way when I had to do some layoffs during the slow season.

Wait, so employees pay into unemployment too? I thought it was all employer-funded.

Yeah, Washington is one of the states where both employer and employee contribute. Most of the cost is on the employer side though.

That's good to know for budgeting. Do they announce the new wage base amount early in the year?

Usually by December they'll publish the rates for the following year. Washington ESD puts out a rate notice that shows all the details.

That's pretty common! Most small business owners just let their payroll service handle all the calculations rather than trying to figure it out themselves.

yeah exactly, my accountant deals with it. worth the extra cost to not have to worry about screwing it up

Make sure you register as soon as you hire your first employee - don't wait. You need to get your unemployment account number and start filing quarterly reports right away.

And if you run into any issues with Washington ESD during the setup process, definitely consider using Claimyr to get through to someone who can help. Their phone system is still a nightmare even for employer questions.

What kind of rate do you pay in landscaping if you don't mind me asking?

I'm paying around 3.2% now after a few years. Started higher because of the industry classification, then went down a bit with good experience rating.

Good point about the deadlines. How strict is Washington ESD about late filings?

Pretty strict from what I've seen. They charge interest and penalties that can add up fast. Better to be safe and file on time even if you owe zero.

Is there a way to find out what rate class my business would be in before I register?

You can look up the industry codes on the Washington ESD website, but honestly it's easier to just call and ask them. They'll assign you based on your actual business activities.

If you do need to call Washington ESD, seriously consider using Claimyr. I wasted so many hours trying to get through on my own. Much easier to let them handle the callback and connect you to an actual person.

That's my situation now - just me working alone. Planning to hire someone in the next few months though.

Just make sure you register right away when you do hire. There are penalties for not registering on time, and you'll be liable for back taxes from the date you should have registered.

The system does favor larger employers to some extent because they have more stable patterns. Small businesses with just a few employees can see bigger swings in their rates from individual claims.

Exactly. One bad experience and you're stuck paying higher rates for years. Makes you really think twice about hiring new people.

Oh great, more payroll taxes I didn't know about. How much is that one?

It's much smaller - like 0.6% total split between employer and employee. But it's another thing to track and file reports for.

Good to know. I'm hoping to avoid any situations like that, but better to be prepared.

Hope for the best, plan for the worst. Even good employees sometimes file claims after they quit, claiming they were constructively dismissed or whatever.

Wow, 6% is a huge difference from 0.3%. That could really impact hiring decisions.

Absolutely. It's one of those hidden costs of doing business that people don't think about until they're actually paying it.

This is exactly the kind of situation where Claimyr can help. They specialize in getting through to Washington ESD when you can't reach them through normal channels. Saved me hours of frustration.

might have to try that... been calling for weeks with no luck

True, every little bit helps when you're trying to manage cash flow as a small business.

Thanks for the specific dates. I'll definitely set up reminders for those.

Smart move. I missed one deadline in my first year and the penalty was more than the actual tax I owed. Learned that lesson quick.

That's good conservative planning. Thanks to everyone who responded - this has been really helpful for understanding what I'm getting into!

Good luck with the new business! The unemployment insurance costs are just part of the overhead, but it's important to factor them in properly from the start.