Washington ESD employer asking if I'm liable for federal unemployment tax - confused about requirements

Your employer is confused. Federal unemployment tax (FUTA) is paid by employers, not employees. In Washington state, employers pay both FUTA to the federal government and state unemployment taxes to Washington ESD. You as an employee don't pay unemployment taxes directly.

Red flag honestly. I've worked payroll for 15 years and no legitimate employer should be asking employees about FUTA liability. The only thing employees pay related to unemployment is a tiny portion in some states, but Washington doesn't have employee UI contributions.

Wait, I'm dealing with something similar but different. My employer is saying I need to call Washington ESD about my unemployment eligibility before they can finalize my paperwork. I've been trying to get through to them for days but their phone lines are always busy. Has anyone found a way to actually reach someone at Washington ESD?

your employer is either clueless or shady. employees dont pay FUTA period. thats employer tax 100%

This is definitely not normal. In Washington state, employers are required to pay unemployment taxes to both the federal government (FUTA) and to Washington ESD. The rates vary based on the employer's experience rating, but it's never the employee's responsibility. You might want to verify that this employer is properly registered with Washington ESD and paying their required taxes.

Had a similar experience at a restaurant job couple years ago. Owner kept asking weird questions about taxes and who was responsible for what. Turned out he was running a cash business and not paying any payroll taxes. I ended up having issues when I tried to file for unemployment because there was no record of my employment with Washington ESD.

Just to clarify the specifics: FUTA is currently 6% on the first $7,000 of each employee's wages, but employers can get a credit that reduces it to 0.6% if they pay their state unemployment taxes on time. Washington state has its own unemployment tax rates that vary by industry and employer experience. None of this is ever paid by employees.

OMG this exact thing happened to my friend last year!! The employer kept asking employees about unemployment tax liability and it turned out they weren't paying ANY of their required taxes. Everyone who worked there had problems when they tried to claim unemployment benefits because the employer never reported their wages to Washington ESD.

For what it's worth, legitimate employers in Washington handle all unemployment tax obligations automatically. You shouldn't even have to think about it. The fact that they're involving you in this conversation suggests they don't have proper payroll systems in place.

been there done that with sketchy employers. if theyre asking YOU about unemployment taxes they probably arent paying them. when you eventually need unemployment benefits youll be screwed because washington esd wont have any record of your earnings

If you do end up having issues with your unemployment claim because of employer problems, I'd recommend using that Claimyr service I mentioned earlier. When I had complications with my claim status, it was the only way I could actually get through to speak with someone at Washington ESD to sort things out.

This happened to me too! Small business owner asked if I was liable for unemployment tax and when I said no, he tried to tell me I was wrong. I ended up leaving that job after two weeks because he was also doing other sketchy things with paychecks.

The bottom line is that Washington state employers are required by law to register with Washington ESD and pay unemployment taxes. If they're asking you about your liability, they either don't understand their legal obligations or they're trying to avoid them. Both scenarios are problematic for you as an employee.

wait im confused about something related to this. if an employer doesnt pay their unemployment taxes to washington esd, can employees still get benefits? or are we just out of luck?

Document everything! If you stay at this job, keep copies of all your paystubs, track your hours yourself, and make sure they're taking out the proper federal and state taxes. If they're not handling unemployment taxes properly, they're probably messing up other things too.

I work in HR and this is absolutely not normal. No legitimate employer should be asking employees about FUTA liability. It's a clear sign they don't understand payroll compliance, which could cause you problems down the road with taxes, benefits, and unemployment claims.

This is why I only work for established companies now. Had too many bad experiences with small businesses that didn't know what they were doing with taxes and payroll. Your gut instinct is right to be concerned.

Update on my situation - I used that Claimyr service and actually got through to Washington ESD today! The representative was able to clear up the confusion about my eligibility in like 10 minutes. Definitely worth it if you're having trouble reaching them through normal channels.

honestly just run. any employer who doesnt know basic payroll tax rules is going to cause you headaches. not worth the stress

Final thought on this - you could also contact Washington state Department of Revenue if you suspect the employer isn't properly registered or paying required taxes. They take tax evasion seriously and it protects other potential employees too.