Washington ESD unemployment tax question - which payments not taxable for federal unemployment?

There are several types of payments that aren't subject to federal unemployment tax (FUTA). The main ones include payments to independent contractors, certain fringe benefits like health insurance premiums, payments to partners in a partnership, and payments to employees after they've earned over the annual wage base limit ($7,000 for FUTA). Also things like reimbursed business expenses, workers comp payments, and some retirement contributions.

Wait why is your employer asking you about this? That seems weird for an unemployment claim...

I had issues getting through to Washington ESD about wage verification last month. Spent hours on hold and kept getting disconnected. Finally found this service called Claimyr (claimyr.com) that helped me reach an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Really saved me a lot of frustration trying to get answers about my wage base.

Other non-taxable payments include tips under $20 per month per employee, certain educational assistance, adoption assistance, and moving expense reimbursements. Also payments for services performed outside the US if the employee is a nonresident alien.

don't forget about payments to statutory employees like certain real estate agents and insurance salespeople. those are usually subject to different rules

This is all really helpful! I think I understand better now. It sounds like most regular wages would be taxable for unemployment purposes, but things like benefits and reimbursements might not be.

Also worth mentioning - payments made after employment ends, like accrued vacation pay, might be treated differently depending on when they're paid out. Some count toward the base period, some don't.

I'm dealing with something similar right now and can't get through to Washington ESD to clarify my wages. The automated system just keeps hanging up on me. Might try that Claimyr thing someone mentioned earlier.

One more thing to add - severance payments are generally subject to FUTA tax, but the timing of when they're paid can affect which quarter they're reported in. This can sometimes impact unemployment benefit calculations if it changes your base period wages.

Just to clarify - are we talking about what's taxable for the employer's unemployment tax liability, or what counts as wages for determining unemployment benefits? Because those aren't always the same thing.

The wage base limit is important too. Once an employee earns over $7,000 in a calendar year, additional wages aren't subject to FUTA tax. But for unemployment benefits, all wages in your base period typically count.

Group term life insurance over $50,000 is another one that's not subject to FUTA but might show up on your pay stub as taxable income for other purposes.

If you're still having trouble getting answers from Washington ESD about your specific wage situation, I'd recommend trying to reach them through Claimyr. I used them a few weeks ago when I couldn't get through about an adjudication issue. Check out claimyr.com - they have a demo video that explains how it works.

This whole thread has been really informative! I was confused about this stuff too when I filed my claim last year.

One last thing - if your employer made an error in their wage reporting to Washington ESD, they can usually file a correction. Just make sure you keep records of what you actually earned in case there are discrepancies.

Hope this all works out for you OP! Wage issues can be confusing but usually get resolved pretty quickly once you get the right person at Washington ESD.

For anyone else reading this - if you run into wage verification issues with Washington ESD, don't wait too long to get it sorted out. It can affect your benefit calculations if there are errors in the reported wages.

This has been a great discussion. Unemployment wage rules are so complicated but everyone here explained it really clearly.