Washington ESD unemployment eligibility for small business owners - how does this work?

Business owners can qualify for Washington ESD unemployment benefits, but there are specific requirements. You need to have paid unemployment taxes on your own wages as an owner-employee, and you have to meet the same eligibility criteria as regular employees - like being able and available for work and actively seeking employment.

I went through this exact situation two years ago when my restaurant failed. The tricky part is proving you're not still operating any part of your business. Washington ESD will want documentation showing you completely ceased business operations.

Just a heads up - if you're having trouble reaching Washington ESD to ask about your specific situation, I recently discovered this service called Claimyr (claimyr.com) that helps you get through to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me hours of calling and getting busy signals.

wait so if i had an LLC but never paid myself unemployment taxes i cant get benefits?? this is so confusing

The Washington ESD system is so backwards when it comes to business owners. They make it nearly impossible to qualify and then when you do qualify, they question everything you do. I had to go through three different adjudication reviews just to prove I wasn't secretly still running my business.

One thing to remember is that your benefit amount will be calculated based on the wages you paid yourself, not your business revenue. So if you paid yourself a low salary but had good business profits, your weekly benefit will be based on that low salary.

Are you sure you want to go through with filing? Once you file for Washington ESD unemployment as a business owner, they're going to scrutinize everything. Every bank transaction, every business contact, every potential opportunity.

I tried filing after my business closed and they denied me initially because they said I was still 'available for self-employment opportunities.' Had to appeal and explain that I was specifically seeking traditional employment only.

make sure you dont have any employees still on payroll or they'll say your business isnt really closed

The job search requirement is going to be interesting for you. Since you were self-employed, Washington ESD might want to see that you're specifically targeting employee positions and not just networking for potential freelance work.

I've been through this process and honestly the hardest part is getting someone at Washington ESD on the phone to explain your specific situation. The automated system doesn't handle business owner scenarios very well.

Don't forget about the waiting week! Even if you qualify, you won't get paid for your first week of unemployment. And if there are any issues with your claim, the whole process gets delayed.

my cousin went through this last year and washington esd made her prove she wasnt getting any money from the business anymore. they wanted bank statements going back 6 months

One thing that helped me was getting a letter from my accountant explaining the business closure and confirming that all operations had ceased. Washington ESD seemed to take that more seriously than just my own documentation.

Just remember that if you do any freelance or consulting work while on unemployment, you have to report every penny. They're especially strict about this with former business owners.

The whole process took about 3 weeks for my claim to get approved after I filed. There was some back and forth about documentation but once I provided everything they needed, it went through without issues.

Whatever you do, don't try to restart any kind of business activity while you're collecting benefits. I know someone who got caught doing some 'small' freelance projects and Washington ESD hit them with a huge overpayment bill.

Has anyone here had success using claimyr to get through to washington esd about business owner questions? seems like it could save a lot of time

The bottom line is that business owners can qualify for Washington ESD unemployment, but you need to have paid into the system and be able to prove complete cessation of business operations. It's more complicated than regular employee claims but definitely possible.

One last tip - when you file your weekly claims, make sure you understand the difference between 'able and available' and actively seeking work. As a former business owner, they might question your availability for traditional employment.

I went through a similar situation when I had to close my marketing agency in 2023. One thing I wish I had known earlier is to keep detailed records of your business closure date and all the steps you took to wind down operations. Washington ESD will want to see evidence like your final client communications, office lease termination, business license cancellation, etc. Also, be prepared for them to ask about any business assets you might have sold or transferred - they want to make sure you're not just restructuring to collect benefits. The process can be lengthy but if you legitimately closed your business and paid unemployment taxes on your wages, you should qualify. Just be patient and have all your paperwork organized from the start.