Washington ESD federal unemployment tax due date - need help with timing

Thanks! So for 2024 taxes I have until January 31st 2025? That's cutting it close since we're already in January.

Yes exactly, but only if your total FUTA liability for 2024 was under $500. If it was more you should have been paying quarterly.

This is about employer taxes that fund unemployment benefits. Different topic but related to the whole Washington ESD system.

oh ok that makes sense. my bad for jumping in

Never heard of Claimyr but I'm desperate at this point. The phone lines are always busy when I try to call.

I used them too when I couldn't reach Washington ESD about my claim status. Really helped get through the phone maze.

That's really helpful. So as long as I'm paying my Washington ESD taxes on time, the federal rate is much lower?

Correct. The 5.4% credit assumes you're paying your state taxes timely. If you're delinquent on state taxes you lose the credit.

This is why I hate being self-employed. Too many different tax deadlines to keep track of.

Form 940? I haven't heard of that one. Is that separate from the tax payment?

Yes, it's the annual federal unemployment tax return. You have to file it even if your tax liability was zero.

As long as you pay your taxes on time, your employees' benefits won't be affected. The Washington ESD system handles the benefit payments regardless.

ok good to know. i was worried they might not get paid if i messed up the tax stuff

That's reassuring. I think I've been overthinking this. Should I double-check my quarterly payments against my total liability?

Definitely. Calculate 0.6% of the first $7,000 per employee for the year and compare to what you've already paid.

wish my accountant explained it this clearly. thanks for breaking it down

I'll check the IRS site. I was looking at Washington ESD thinking they handled both state and federal.

Yeah that's a common mistake. Washington ESD only handles state unemployment taxes. Federal is all IRS.

Good idea about the calendar reminders. I should set those up for next year.

I use an app that reminds me about all my business tax deadlines. Saves so much stress.

Which app do you use? I could use something like that.

I've been in business for 3 years, so probably not new anymore. But good to know for others.

Yeah, the new employer rate usually only applies for the first 2-3 years depending on your state's rating system.

Yikes, how much was the penalty? Now I'm really worried about the January 31st deadline.

It was like 15% of what I owed plus interest. Way more than I expected for being less than a week late.

ouch that's painful. definitely better to be safe than sorry with tax deadlines

You've used them multiple times? It must really work then.

Yeah, twice now. Once for a claim issue and once for tax questions. Much better than sitting on hold for hours.

The federal wage base has been $7,000 for many years. Congress would have to change it, which doesn't happen often.

Thanks! I was confusing it with Social Security wage base which goes up every year.

That's smart. I should coordinate my payments like that instead of treating them separately.

same here. makes the whole process much simpler to handle both at once

Got it. I'll make sure I have both the form filed and payment made by January 31st. Thanks everyone for all the help!

glad this thread helped. i learned a lot too even though i dont have employees yet

That's really good to know about the 8 PM cutoff. I was worried about mail delivery timing.

Yeah, electronic payments are definitely the way to go for last-minute submissions. Much more reliable than mail.