Washington ESD - how to calculate federal unemployment tax impact on my claim

The federal unemployment tax (FUTA) that your employer paid doesn't directly determine your Washington ESD benefit amount. Your weekly benefit is calculated based on your wages during your base period, not on the taxes paid. FUTA helps fund the federal portion of the unemployment system, but Washington ESD uses your earnings history to calculate your benefits.

I was confused about this too when I first filed. The federal tax stuff is separate from what you actually receive. Your employer pays FUTA at 6% on the first $7,000 of wages, but that money goes into a federal fund that supports state unemployment programs. It doesn't impact your individual claim amount at all.

If you're having trouble getting through to Washington ESD to verify your benefit calculation, I had good luck with Claimyr. They help you get connected to an actual agent without waiting on hold forever. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helped me get my questions answered about my benefit amount.

FUTA and your unemployment benefits are totally separate systems. Think of FUTA as the employer's contribution to keep the whole unemployment insurance system running. Your benefits come from state taxes (SUTA) that employers also pay, plus your own work history. The federal part is more about funding and oversight.

ugh this is all so confusing... why can't they just make it simple? I just want to know if I'm getting the right amount from Washington ESD

Just to add - if you're self-employed or had 1099 income, that's where things get more complicated with unemployment benefits. But for regular W-2 employees, the FUTA your employer paid doesn't affect your personal benefit calculation at all.

my employer told me they pay unemployment taxes but i never saw it on my paystub is that normal

The whole unemployment tax system is designed so that employers fund it, not employees. Your Washington ESD benefits are an insurance program that your employer paid into on your behalf. The federal portion (FUTA) helps coordinate between states and provides funding for extended benefits during recessions.

Had a similar question when I got laid off last year. Called Washington ESD but couldn't get through for weeks. Finally used that Claimyr service someone mentioned and got connected to an agent who explained that my benefit was calculated correctly based on my wages, not any tax calculations. Worth trying if you need to talk to someone directly.

Quick question - does the federal unemployment tax rate ever change? Just curious if that would affect anything down the road.

I think there's confusion because some people mix up federal income tax withholding on unemployment benefits with the federal unemployment tax. They're completely different things. You might owe income tax on your Washington ESD benefits, but that's separate from FUTA.

this whole system is ridiculous. why do we need federal AND state unemployment taxes? seems like double taxation to me

For what it's worth, I work in payroll and can confirm that FUTA is completely separate from benefit calculations. We pay it to the IRS, but each state runs its own benefit program. Washington ESD uses your wage base period to calculate benefits, period.

wait so if my employer paid less FUTA that wouldn't hurt my benefits?

I got confused about this when I first filed too. Thought maybe the federal taxes would somehow boost my benefit amount, but nope. It's all based on your actual earnings during the base period quarters.

The federal unemployment tax is really more about the infrastructure of the whole system. It funds things like the processing systems and helps with coordination between states. Your individual benefits are calculated by Washington ESD based on your work history.

Just to close the loop on this - if you ever need to verify your benefit calculation with Washington ESD directly, that Claimyr service really does work. I was skeptical at first but it got me through to an agent who could pull up my exact wage records and show me how they calculated my weekly benefit amount.

Thanks everyone for all the explanations! This really helped clear up my confusion about how federal unemployment tax relates to my Washington ESD benefits. Sounds like I don't need to worry about it affecting my benefit amount at all.