Washington ESD unemployment eligibility for business owners - need help understanding the process
I had to close my small restaurant last month after 8 years of running it. I'm wondering if I can qualify for unemployment benefits through Washington ESD since I was technically the owner? I did pay myself a salary and had W-2s, but I'm not sure if that matters. Has anyone been through this situation before? I'm really confused about the whole process and could use some guidance on what documents I need or if I even qualify at all.
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Ethan Brown
Yes, you can potentially qualify for Washington ESD unemployment if you paid yourself wages and had unemployment taxes withheld. The key is whether you were treated as an employee for tax purposes. If you received W-2s and had UI taxes deducted, you should be eligible. You'll need to file a claim through the Washington ESD website and provide your wage records.
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CosmicCrusader
•That's good to know! I definitely had W-2s for myself. Do I need to provide business closure documentation too?
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Ethan Brown
•Yes, having documentation about the business closure will help support your claim. Keep any legal documents, lease termination notices, or other proof of why the business closed.
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Yuki Yamamoto
wait this is confusing me - I thought business owners couldn't get unemployment at all? I've been putting off filing because I assumed I wasn't eligible
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Carmen Ortiz
•It depends on how you structured your business. If you're a sole proprietor who didn't pay into the UI system, then no. But if you incorporated and paid yourself wages with UI taxes, then yes you can qualify.
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Yuki Yamamoto
•oh that makes sense, I was an LLC but didn't pay myself regular wages so probably not eligible then
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Andre Rousseau
I went through this exact situation last year. The hardest part was actually getting through to Washington ESD to verify my claim status. I kept calling but the lines were always busy or I'd get disconnected. Finally found this service called Claimyr that helps you get through to ESD agents. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works. Made the whole process so much easier.
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CosmicCrusader
•Thanks for the tip! I'll definitely check that out. How long did your claim take to get approved?
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Andre Rousseau
•Once I got through to talk to someone, it was approved within a week. The key was having all my wage documentation ready.
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Zoe Papadakis
•Never heard of Claimyr before but anything that helps with ESD's phone system sounds worth trying
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Jamal Carter
THIS IS SO FRUSTRATING! I've been trying to get answers about this for weeks and Washington ESD's website is completely unhelpful. Why can't they just have clear information about business owner eligibility???
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Carmen Ortiz
•I totally understand the frustration. The ESD website can be really confusing. Your best bet is to just file the claim and let them determine eligibility based on your wage records.
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Jamal Carter
•I guess I'll have to try that. I just don't want to waste time if I'm not going to qualify anyway.
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Ethan Brown
For anyone else reading this, here are the key requirements for business owners to qualify for Washington ESD unemployment: 1) You must have paid yourself wages as an employee, 2) Unemployment taxes must have been paid on those wages, 3) You must meet the standard eligibility requirements (available for work, actively seeking employment, etc.), 4) The business closure or reduction in hours must be through no fault of your own.
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CosmicCrusader
•This is really helpful! I think I meet all these requirements. The closure was definitely not my fault - my landlord doubled the rent and I couldn't afford it.
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AstroAdventurer
•what about the job search requirement? Do I need to look for work in the same industry or can I look for regular employee jobs?
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Ethan Brown
•You can look for any suitable work, not just in your previous industry. The job search requirement is the same as for any other unemployment claimant.
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Mei Liu
I had a similar situation but with a consulting business. Make sure you have all your quarterly wage reports that were filed with Washington ESD. Those will show exactly what wages you paid yourself and what UI taxes were paid.
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CosmicCrusader
•Good point! I think my accountant has all those records. I'll need to get copies.
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Mei Liu
•Yes, definitely get those. Also keep records of your business expenses and closure costs - they might ask for that information too.
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Liam O'Sullivan
Just want to add that the whole process took me about 3 weeks from filing to getting my first payment. The adjudication process for business owners seems to take a bit longer than regular employees because they have to verify the employment relationship.
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CosmicCrusader
•That's not too bad actually. I was expecting it to take months based on what I've heard about Washington ESD delays.
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Amara Chukwu
•3 weeks is pretty good! Mine took 6 weeks but that was during the busy season last year
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Giovanni Conti
Make sure you're honest about your business ownership when you file. Don't try to hide it or make it seem like you were just a regular employee. Washington ESD will find out anyway and it could cause problems with your claim.
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CosmicCrusader
•Absolutely! I plan to be completely transparent about everything.
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Fatima Al-Hashimi
•good advice - transparency is always the best policy with unemployment claims
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NeonNova
Question about the weekly claims - do I need to report any income from winding down the business? Like if I'm selling equipment or collecting final payments from customers?
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Ethan Brown
•Yes, you need to report any income during your weekly claims, including proceeds from selling business assets or collecting outstanding receivables. This could affect your benefit amount for those weeks.
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NeonNova
•Thanks for clarifying! I'll make sure to track everything carefully.
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Dylan Campbell
I'm in a similar boat but my business is still open, just with reduced hours and income. Can I get partial unemployment benefits?
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Carmen Ortiz
•Yes, Washington ESD has a SharedWork program for reduced hours, but it's typically for employees. As a business owner, you might qualify for regular UI if your wages have been significantly reduced, but you'd need to meet the job search requirements.
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Dylan Campbell
•That's complicated. I'll probably need to call and ask about my specific situation.
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Sofia Hernandez
•If you do need to call ESD, definitely check out that Claimyr service mentioned earlier. Saved me hours of trying to get through on my own.
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Dmitry Kuznetsov
One thing to be aware of - if you're planning to start another business soon, you need to be careful about the 'able and available' requirement. You can't be actively starting a new business while collecting unemployment.
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CosmicCrusader
•Good to know! I'm not planning to start anything new right away, but I'll keep that in mind for the future.
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Ava Thompson
•Yeah they're pretty strict about that. You have to be genuinely available for employee work.
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Miguel Ramos
Does anyone know if there are any differences in benefit amounts for business owners versus regular employees?
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Ethan Brown
•No, the benefit calculation is the same. It's based on your reported wages during the base period, just like any other claimant. The maximum weekly benefit amount is the same regardless of whether you were an owner or employee.
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Miguel Ramos
•That's reassuring. I was worried they might calculate it differently.
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Zainab Ibrahim
Just wanted to say thanks for this thread! I've been wondering about this same thing for my photography business. Really helpful to see all the different perspectives and experiences.
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CosmicCrusader
•Glad it's helpful! I've learned a lot from everyone's responses too.
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StarSailor
•Same here - this is exactly the kind of info that's hard to find on the official websites
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Connor O'Brien
Final tip - when you file your claim, make sure you have your federal EIN number handy. Washington ESD will ask for it to verify your business registration and wage records.
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CosmicCrusader
•Perfect! I have that number saved. Thanks for the heads up.
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Yara Sabbagh
•Also make sure you know your SIC code if they ask - it's the industry classification code for your business type
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Keisha Johnson
Update: I just filed using the information from this thread and the process was actually pretty straightforward. Used Claimyr to get through to ESD and they confirmed my eligibility right away. Thanks everyone!
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CosmicCrusader
•That's awesome! Gives me confidence to move forward with my own claim. How long did it take you to get through with Claimyr?
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Keisha Johnson
•About 10 minutes to get connected, then maybe 15 minutes on the phone with the ESD agent. So much better than trying to call on my own.
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Paolo Rizzo
•Definitely going to try that service myself. Thanks for the update!
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