Washington ESD employer - confused about how to pay federal unemployment tax properly

Thank you! So as long as I'm current with Washington ESD, I only pay 0.6% to the feds? That's way better than I thought.

Exactly! Washington state is not a credit reduction state, so you get the full 5.4% credit as long as you're not delinquent on your state taxes.

Thanks, I'll check that out. Getting through to anyone at Washington ESD has been impossible lately.

Never heard of Claimyr but anything that helps with Washington ESD phone issues sounds worth trying.

I do have an EIN already. Is EFTPS free to use?

Yes, EFTPS is free. Just register online at eftps.gov with your EIN and you can schedule payments in advance.

Tell me about it. At least Washington ESD makes the state side relatively straightforward compared to some other states I've dealt with.

true the washington esd online system isnt terrible once you figure it out

Good point! So if I have an employee making $50k, I only pay FUTA on $7,000 of that?

Correct. Once an employee hits $7,000 in wages for the year, you stop paying FUTA on their additional earnings.

This is different from Washington ESD state unemployment tax though - that has a higher wage base limit.

What happens if I'm late on the quarterly deposits?

Penalties and interest, plus you might lose your FUTA credit which means paying the full 6% instead of 0.6%.

I've been keeping copies of everything from Washington ESD. Should I do the same for federal?

Absolutely. Screenshot your EFTPS confirmations and keep copies of Form 940 filings.

How did you manage to get both agencies on the same call? That sounds like a nightmare to coordinate.

This is exactly why I mentioned Claimyr earlier. When you need to reach Washington ESD quickly for issues like this, it's a lifesaver.

Yeah it was really difficult. I'll have to look into that Claimyr thing for next time.

So Washington ESD handles state unemployment and I handle federal unemployment directly with the IRS?

Exactly. Two separate systems, two separate payments, but your state compliance affects your federal rate.

A payroll service might be worth it if you have multiple employees. They handle both state and federal requirements.

any recommendations for payroll services that work well with washington esd?

All my employees are regular W-2 employees, so I think I'm covered there.

Good advice. I'll make sure to double-check everything before I file.

And again, if you need to reach Washington ESD for any employer questions, Claimyr really does make it easier to get through.

That's really smart. I'll set that up this week. Thanks everyone for all the help!

This thread has been super helpful. I learned a few things I didn't know about FUTA myself.

Appreciate it! Definitely feeling more confident about handling this properly now.