Washington ESD - How much unemployment tax does my employer actually pay for my benefits?

That's actually not as high as I expected! So on a $50k salary that would be like $1,350 per year max?

Exactly, and that's only up to the wage base which is $68,500 for 2025. So anything above that amount isn't taxed for unemployment purposes.

Oh interesting, so it's like insurance where your rates go up if you make claims?

pretty much yeah. companies that rarely lay people off get rewarded with lower rates

Wait, there's actually a service that helps you get through to Washington ESD? I've been trying to reach them about my adjudication for 2 months!

Yes! It was a lifesaver for me. Much better than sitting on hold for hours just to get disconnected.

Good to know about that service, though hopefully I won't need it. Thanks for the info about administrative costs too.

That makes sense from a risk perspective. What industry typically pays the lowest rates?

Usually professional services, tech companies, and established businesses with stable employment records. Some can get rates as low as 0.19% if they have very few claims.

Oh right, I forgot about that! So there are multiple programs they're paying into?

yeah family leave is like 0.4% split between employer and employee, unemployment is all employer paid though

Thanks, that's really helpful planning information! I'll make sure to factor that into my business budget.

also remember you have to pay on yourself if you elect coverage as a business owner, its optional but recommended

Wow, that's a massive jump! How long does it take for rates to come back down?

Takes several years of no claims to get back to lower rates. The system has a long memory unfortunately.

thats exactly why some companies fight unemployment claims so hard, it directly impacts their future costs

Like I mentioned earlier, I used Claimyr to get through to them about my claim issues. Really worth checking out if you've been stuck that long.

I might have to try that. This waiting is driving me crazy and I can't afford to keep waiting indefinitely.

2 months is definitely too long for adjudication, something is wrong there

That sounds incredibly frustrating. What kind of issue are you dealing with?

They're saying I was overpaid but won't explain how they calculated it. Every time I call I get different information or get hung up on.

have you tried that claimyr thing people mentioned? might be worth a shot at this point

That's a good rule of thumb for budgeting purposes. Thanks for sharing that practical insight!

No problem! Better to overestimate than get surprised by the quarterly bills.

Yes, it's required for all employers with employees. Think of it as insurance - you pay the premium whether you use it or not.

that seems expensive for small businesses just starting out

It is one of many costs to consider, but the rates for new employers aren't too bad if you plan for them from the start.

That's terrible that they would fight a legitimate claim just to save money on taxes!

Yeah it was pretty stressful at the time. Took months to resolve and I really needed those benefits.

this is why the system needs reform, too many employers game it

OK I'm definitely going to try this. I literally cannot get through any other way.

Hope it helps! The video demo on their site shows exactly how it works so you know what to expect.

That's a good point - it serves an important purpose even if it costs employers money.

exactly, its basically insurance for workers and helps stabilize the economy during downturns

Washington ESD usually announces rate changes in the fall for the following year. Keep an eye on their website around October/November for 2026 rates.

Thanks, I'll watch for that announcement. These costs definitely add up when you have multiple employees.

Same here! It's interesting to understand the mechanics of how these programs are funded.

yeah most people dont realize unemployment benefits are essentially pre-paid by employers, not taxpayers