Washington ESD federal unemployment taxes are paid by the employer and the employee - confused about my paycheck deductions

Actually, federal unemployment taxes (FUTA) are only paid by employers, not employees. You won't see any unemployment tax deductions on your paycheck. The employer pays FUTA tax to fund the federal portion of unemployment benefits. Washington state doesn't have a state income tax, so you shouldn't see that deduction either if you're working in WA.

your HR person might be thinking of other states. some states do have employee contributions but washington doesnt. only thing you pay is federal income tax and social security/medicare

To clarify the Washington ESD system: employers pay both federal unemployment tax (FUTA) and Washington state unemployment tax. These taxes fund the unemployment insurance program. As an employee, you don't pay into the system directly, but you earn eligibility by working in covered employment. When you file for unemployment benefits through Washington ESD, your benefit amount is calculated based on your earnings history over your base year period.

I had similar confusion when I first moved to Washington. If you ever need to contact Washington ESD about wage reporting or eligibility questions, I found this service called Claimyr that helps you get through to an actual agent. Their website is claimyr.com and they have a video demo at https://youtu.be/7DieNd3C7zQ. Way better than trying to call Washington ESD directly and getting busy signals all day.

the whole system is confusing honestly. i thought i was paying unemployment tax too until someone explained it to me

One thing to keep in mind - make sure you understand the difference between unemployment insurance and disability insurance. Some people confuse the two. Unemployment is for when you lose your job through no fault of your own. Disability insurance (if your employer offers it) is for when you can't work due to illness or injury.

also worth mentioning that if you ever file for unemployment, washington esd has pretty strict job search requirements. you have to apply for jobs and keep a log

The tax structure is definitely employer-funded in WA. I've been doing payroll for 15 years and can confirm employees don't pay unemployment taxes here. Your employer pays quarterly taxes to Washington ESD based on their payroll and experience rating.

just to add - if you ever do need to file unemployment make sure you file right away. there's usually a waiting period and delays in processing

Washington state is actually pretty generous with unemployment benefits compared to some other states. The maximum weekly benefit is higher than many places.

Pro tip: even though you don't pay unemployment taxes directly, keep good records of your employment. If you ever need to file a claim, Washington ESD will need your work history and sometimes there are discrepancies in their records.

I work in HR and can confirm what others have said - employees in Washington don't pay unemployment taxes. It's 100% employer-funded through state and federal taxes.

The system makes more sense when you realize it's basically insurance that employers buy to cover their workforce. You get coverage by working for covered employers.

btw if you're ever between jobs and need to contact washington esd, dont waste time calling their main number. impossible to get through

Washington also has some unique programs like SharedWork that other states don't have. Worth knowing about if your employer ever needs to reduce hours instead of laying people off.

One more thing - make sure you understand the difference between being fired and being laid off when it comes to unemployment eligibility. Both your employer's reporting and your own understanding matter for your claim.

Thanks everyone for all the helpful info! I feel like I understand the Washington unemployment system much better now. Good to know I'm covered without having to pay extra taxes.