Washington ESD employer tax withholding confusion - are they taking federal unemployment taxes from my check?

That makes more sense! I was really confused because it seemed backwards from what I learned when I was collecting UI benefits.

Yeah employers fund the unemployment system through their own tax payments, not by taking money from us employees.

You're right, I looked again and it's just the standard federal income tax. My manager definitely got this wrong when explaining it to me.

Happens all the time. A lot of managers don't really understand payroll taxes and mix up what employees vs employers pay.

Never heard of Claimyr before but good to know there's a way to actually reach Washington ESD when needed. Their phone lines are always busy.

Thanks for clarifying that with an actual Washington ESD agent! I feel better knowing I wasn't missing something obvious about how the system works.

It's actually a pretty logical confusion since we pay into Social Security and Medicare through payroll deductions.

exactly! like why is unemployment different than those other programs you know?

That's really helpful context! Do you know roughly what employers pay in Washington for unemployment taxes?

It varies by employer based on their claim history, but generally ranges from about 0.2% to over 5% of wages for Washington state tax, plus 0.6% federal.

Wow that can add up to be pretty significant for businesses with lots of employees.

The employer paying taxes just funds the system. You still have to meet eligibility requirements like having sufficient wage history, being unemployed through no fault of your own, being able and available for work, etc.

Ohhh I see, so the taxes just create the money pool but there are still rules about who can access it.

Exactly! Plus you have to actively file for benefits and do your weekly claims and job search requirements.

That makes total sense from a policy perspective. If employees paid in, it would be more like a retirement account than insurance.

Right! It's insurance that protects workers when they lose jobs through no fault of their own.

Yeah that's a really good way to think about it logically.

Plus if employees paid in and then got laid off, they'd be getting back their own money instead of receiving actual support.

That's exactly why I mentioned Claimyr earlier - it's frustrating when you can't reach anyone at Washington ESD. At least now there's a way to get through their phone system.

wish i had known about that service when i was dealing with all that bureaucratic nonsense

The system definitely has issues but at least the funding mechanism makes sense from an employee protection standpoint.

Perfect, thanks for the confirmation from someone who actually handles this stuff! I'll politely correct my manager next time it comes up.

Good idea to clear up the confusion so other new employees don't get worried about their paychecks too.

Glad I wasn't the only one confused about this! It's one of those things that seems like it should be obvious but really isn't.

Yeah there's a lot about payroll taxes and benefits that employers don't explain very well to new hires.

Good to know! I was wondering if maybe some states worked differently.

California has SDI that employees pay into, and some states have family leave programs, but unemployment insurance is employer-funded everywhere as far as I know.

You're welcome! It's definitely counterintuitive compared to other programs.

Same here, I just assumed it worked like other payroll taxes but it makes sense that it's different.

That's a really nice way to frame it! Makes the whole system seem more purposeful.

Yeah it's basically employers collectively insuring against the risk that any individual worker might lose their job.

Good to hear another success story with that service! Seems like it really helps when Washington ESD's regular phone system isn't working.

Yeah I bookmarked their site just in case I ever need to reach ESD again. The regular number is basically impossible to get through.

Perfect summary! This thread has been incredibly educational. Thanks everyone for clearing this up so thoroughly.

Glad we could help! It's always good when these kinds of workplace confusion gets sorted out quickly.