Washington ESD - how much of unemployment does the employer pay when you file a claim?

Employers in Washington pay unemployment insurance taxes to fund the system. They don't pay your benefits directly - it comes from the unemployment insurance trust fund that all employers contribute to. Your specific claim can affect their experience rating though, which determines their tax rate for future years.

The way Washington's unemployment system works is that employers pay quarterly taxes based on their payroll and their experience rating. If they have more claims filed against them, their rate goes up for the next year. So while they're not paying your specific benefits directly, having claims can increase their costs down the road.

I had trouble getting through to Washington ESD when I needed to understand how this affected my business. Spent hours on hold trying to reach someone who could explain the experience rating system. Finally used Claimyr.com to get connected to an actual agent who walked me through it. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

just to be clear - employees don't pay anything for unemployment insurance in Washington. It's 100% employer-funded through their payroll taxes. Some states make employees contribute but not here.

Your employer is probably worried because layoffs can really mess up their experience rating. If they lay off a bunch of people who all file claims, their rate could jump significantly next year. It's not a direct cost but it definitely impacts their bottom line eventually.

The experience rating system is actually pretty complex. New employers start at a standard rate, then after a few years Washington ESD calculates their individual rate based on the ratio of benefits charged to their account versus their total payroll. Higher claims = higher rates.

I remember when my company had mass layoffs during COVID, our UI tax rate went through the roof the following year. We went from like 1.2% to almost 4%. It was a significant expense that we had to plan for.

There's also something called 'benefit charging' where Washington ESD determines which employer's account gets charged for your claim if you worked for multiple employers recently. Usually it's the most recent employer but there are rules about it.

Some employers don't realize they can appeal benefit charges if they think the claim shouldn't be charged to their account. Like if someone quits or gets fired for misconduct. But most don't bother unless it's a significant amount.

The whole system runs on employer contributions - the state doesn't put in general tax money for regular unemployment benefits. It's entirely funded by those quarterly payments employers make based on their payroll.

I was confused about this too when I started my business. Had to call Washington ESD multiple times to understand the reporting requirements. The quarterly reports can be tricky if you're not used to them.

Don't feel bad about filing - you worked and your employer paid into the system specifically to cover this situation. It's insurance, not charity. You earned those benefits through your work history.

The maximum taxable wage base for 2025 is $71,000 per employee, so employers only pay UI taxes on wages up to that amount per worker. Anything above that isn't subject to unemployment insurance taxes.

There are also different rate schedules depending on the balance in the unemployment trust fund. When the fund is healthy, rates are lower. When it's strained (like during recessions), rates can increase to replenish it.

Some industries have higher base rates because they historically have more unemployment claims. Construction and seasonal businesses typically pay more than stable industries like healthcare or government.

Bottom line is your benefits are paid from a fund that all employers contribute to, not directly from your former employer's pocket. But your claim does impact their future costs through the experience rating system.

I used to work in HR and dealt with this stuff regularly. If you ever have issues with Washington ESD not properly charging claims or need to dispute something, there's an appeals process for employers too. It goes both ways.

One thing to remember is that nonprofit organizations and government entities can choose to reimburse benefits directly instead of paying regular UI taxes. So if you worked for a nonprofit, they might actually be paying your benefits directly.

When I needed clarification on how benefit charges work for my business, I ended up using Claimyr to reach a Washington ESD specialist. They explained the whole experience rating calculation and how to project future costs. Worth checking out if you need detailed info.

Don't let your former employer make you feel bad about filing. The unemployment system exists exactly for situations like yours. They paid into it knowing that laid-off employees would file claims - that's how insurance works.