< Back to Washington Unemployment

Mei Chen

Washington ESD unemployment - is unemployment paid by the employer or state?

I'm confused about who actually pays for unemployment benefits in Washington. My former boss keeps saying the company doesn't pay unemployment and it all comes from the state, but I thought employers had to pay into some kind of fund? I just filed my claim with Washington ESD last week and I'm trying to understand how this all works. Does the money come directly from my old employer or does Washington ESD pay it from taxes they collect? Sorry if this is a dumb question but I want to make sure I understand the system.

Your employer pays unemployment taxes to Washington ESD throughout the year based on their payroll. When you file a claim, Washington ESD pays your benefits from this fund, not directly from your employer. So technically both are involved - employers fund it, state administers it.

0 coins

That makes sense! So my old boss was partially right but also wrong?

0 coins

Exactly. The employer doesn't write you a check directly, but they definitely pay into the system that funds your benefits.

0 coins

i think its called SUTA tax or something like that? my paycheck stub shows it sometimes

0 coins

Close - SUTA is State Unemployment Tax Act. In Washington, employers pay this tax quarterly to fund the unemployment insurance program. Employees don't pay into it directly.

0 coins

oh ok so only employers pay it not us?

0 coins

Correct. In Washington state, only employers pay unemployment insurance taxes, not employees.

0 coins

I had the same question when I filed! Washington ESD has a whole fund built up from employer contributions. Your specific employer's tax rate can actually go up if they have a lot of former employees filing claims. It's called an 'experience rating' system.

0 coins

Interesting! So if a company lays off a bunch of people, they pay higher taxes later?

0 coins

Exactly. Companies with more claims against them pay higher rates. It's supposed to incentivize keeping workers employed.

0 coins

Been dealing with Washington ESD for months trying to get through to someone about my claim status. If you need to actually talk to an agent, I discovered this service called Claimyr that helps you get through their phone system. Check out claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Way better than spending hours on hold.

0 coins

How does that work exactly? Do they just call for you?

0 coins

They handle the calling and waiting part, then connect you when an agent picks up. Saved me so much time and frustration.

0 coins

sounds too good to be true but ill check it out i guess, been trying to reach them for weeks

0 coins

The Washington ESD website actually has a good explanation of how employer taxes work. Each employer gets assigned a tax rate based on their claims history. New employers start at a standard rate and it adjusts over time based on how many former employees file for benefits.

0 coins

Thanks! I'll look that up on their site.

0 coins

good luck finding anything useful on that website lol

0 coins

To be completely accurate: Washington state operates an unemployment insurance program funded entirely by employer taxes. There are different tax rates for different industries and individual employer experience ratings. When you file a claim, you're drawing from this pooled fund, not from your specific employer's account.

0 coins

This is really helpful, thank you for the clear explanation!

0 coins

wish someone had explained this to me when i first filed, would have saved a lot of confusion

0 coins

my employer tried to tell me they were paying my unemployment directly and i should be grateful... turns out they were just trying to make me feel bad for filing a legitimate claim

0 coins

Unfortunately some employers do try to discourage legitimate claims. You earned those benefits through your work history.

0 coins

That's awful! I'm glad I asked this question, my boss was acting weird about it too.

0 coins

The funding comes from employer payroll taxes, but the actual benefit payments come from Washington ESD. Think of it like insurance - employers pay premiums, and the insurance company (Washington ESD) pays claims when needed.

0 coins

That's a great analogy, makes it much clearer!

0 coins

exactly, and just like with insurance, you're entitled to benefits if you meet the requirements

0 coins

Been through this whole process twice now. Your employer pays into the system all year long, but they don't get a say in whether your claim gets approved or not. That's all handled by Washington ESD based on your work history and the reason you separated from employment.

0 coins

Good to know they can't interfere with the decision!

0 coins

Right, they can provide information if Washington ESD asks, but the final decision is always with the state.

0 coins

if you're having trouble reaching washington esd about any of this stuff, that claimyr thing mentioned earlier actually works. used it last month when i needed to ask about my weekly claim requirements

0 coins

Seems like a few people have had success with that service

0 coins

yeah i was skeptical at first but it beat sitting on hold for 3 hours

0 coins

The short answer is: employers fund it through taxes, Washington ESD administers and pays it. Your employer doesn't write your unemployment checks, but they did pay the taxes that fund your benefits.

0 coins

Perfect summary, thank you!

0 coins

Washington has one of the more generous unemployment systems in the country, funded entirely by employer contributions. The maximum weekly benefit is pretty decent compared to other states.

0 coins

That's reassuring to hear!

0 coins

yeah the benefits here are definitely better than where i moved from

0 coins

I work in HR and deal with this all the time. We pay quarterly unemployment taxes to Washington ESD based on our payroll and claims history. When former employees file for benefits, we get notified but Washington ESD handles all the payments and determinations.

0 coins

Thanks for the insider perspective!

0 coins

do you know if there's a limit to how much employers have to pay in taxes?

0 coins

There's a wage base limit each year - in 2025 it's on the first $68,500 of each employee's wages. Tax rates vary by industry and experience rating.

0 coins

just wanted to add that if you do need to call washington esd for any reason, claimyr.com has been a lifesaver. they have that demo video that shows exactly how it works - https://youtu.be/7DieNd3C7zQ

0 coins

I'll definitely keep that in mind if I run into issues with my claim

0 coins

third person to mention this service, might be worth checking out

0 coins

Washington ESD also has different programs funded the same way - regular unemployment, standby benefits for union workers, and various training programs. All funded by employer taxes.

0 coins

I didn't know about standby benefits, interesting!

0 coins

Yeah, if you're in a union with a collective bargaining agreement, you might qualify for standby instead of regular UI in certain situations.

0 coins

Bottom line: your employer pays into the system through payroll taxes, Washington ESD pays your benefits from that fund. You're not taking money directly from your former employer's pocket.

0 coins

This whole thread has been super educational, thanks everyone!

0 coins

The system is designed so that employers who lay off workers frequently pay higher tax rates over time. It's meant to stabilize employment and discourage unnecessary layoffs.

0 coins

Makes sense from a policy perspective

0 coins

wish more employers understood this instead of trying to discourage legitimate claims

0 coins

One thing to remember is that this is insurance you earned through your work history. Even though employers pay the premiums, you earned the right to benefits by working in covered employment.

0 coins

That's a good way to think about it - earned benefits, not charity

0 coins

exactly, dont let anyone make you feel bad for filing a claim you're entitled to

0 coins

if you end up needing to contact washington esd directly for anything, that claimyr service really does work. saved me hours of frustration when i had questions about my job search requirements

0 coins

Good to know, I'll bookmark that site just in case

0 coins

Great question OP! Understanding how the system works helps you navigate it better. Washington ESD has come a long way in recent years with their online systems too.

0 coins

Agreed, this has been really helpful. Feeling much more confident about the whole process now.

0 coins

Washington Unemployment AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today