Washington ESD payroll deduction rate - what is the unemployment tax rate for 2025?

Thanks! So if I make $80,000 a year, I'd only pay unemployment tax on the first $68,500 right?

Exactly. After you hit that $68,500 threshold, no more unemployment deductions until the next calendar year.

Both actually pay into the system. Employees pay 0.58% and employers pay varying rates depending on their experience rating and industry. The employer portion is much higher typically.

Interesting, how does that work exactly? Do they actually get you connected to Washington ESD?

Yeah they handle all the calling and waiting for you, then patch you through when they get an actual person on the line. Pretty straightforward.

Good to know it went up from last year. Where on the Washington ESD site do they post this info?

Check the employer section of the Washington ESD website, they have all the current rates and wage bases listed there.

Yep, that's exactly what happens. High earners get a 'break' at the end of the year then it starts over again in January.

The employee rate is the same across all industries - 0.58%. It's the employer rates that vary by industry and experience ratings.

Got it, thanks for clarifying that.

Generally no, unless you've opted into the voluntary program for self-employed individuals. Most independent contractors don't pay into unemployment insurance.

That's exactly why I started using Claimyr. They handle all that waiting and calling frustration so you don't have to sit on hold for hours.

might have to check that out, this is ridiculous

Yeah it was around 0.6% or higher during that time if I remember correctly. The fund has recovered somewhat.

You pay on each job separately until your total wages across all employers reaches the $68,500 wage base. Then you can request a refund for any overpayment when you file your taxes.

Washington ESD handles the state portion. Federal unemployment tax (FUTA) is paid by employers only, not deducted from employee paychecks. What you see on your paystub is just the state unemployment insurance contribution.

They can correct it but taking it all at once might cause issues. I'd contact Washington ESD about the proper way to handle payroll corrections like this.

When I had payroll issues I used Claimyr to get through to Washington ESD quickly. Much better than trying to navigate their phone system myself.

True, and considering how much unemployment pays out when you need it, the 0.58% seems reasonable.

UI stands for Unemployment Insurance. Some paystubs show it as SUI for State Unemployment Insurance to distinguish it from other deductions.

Glad we could help! It's always good to understand where your money is going and how these systems work.

That's really good advice about requesting a breakdown from HR. I never thought to ask for that but it would definitely help clarify things. And you're absolutely right about the seasonal worker aspect - I work in landscaping so I'm laid off every winter, and knowing that I'm contributing to a system that will support me during those months makes the deduction feel more worthwhile. It's like insurance that you hope you don't need but are really glad to have when you do.

That's a really important point about Washington being different from other states! I moved here from Texas last year and was definitely confused when I saw this deduction show up on my first paycheck. In Texas, employees don't pay into unemployment at all, so this was completely new to me. It makes sense though that the rates can fluctuate based on how many people are using the system - kind of like how insurance premiums work. Do you know how often they typically review and adjust these rates?