Washington ESD unemployment tax rate 2024 - confused about federal rate

The federal unemployment tax rate (FUTA) for 2024 is 6.0% on the first $7,000 of each employee's wages, but employers get a credit that reduces it to 0.6% if they pay state unemployment taxes. This doesn't affect your Washington ESD claim amount at all - it's what employers pay into the system.

yeah the federal rate is separate from what you get paid. your washington esd benefits come from state taxes not federal. but good luck actually getting through to anyone at esd to ask questions lol

The FUTA rate has been 6% forever but most states get that credit so it's really 0.6%. Washington state unemployment tax is separate and that's what funds your actual benefits. Don't worry about the federal rate affecting your claim.

I'm confused about this too. My HR department mentioned SUTA and FUTA when I got my layoff paperwork. Is SUTA the Washington ESD tax?

Just to clarify - the 0.6% federal rate applies to the first $7,000 of wages per employee. Washington state has its own rate and wage base that's much higher. That's why your benefits are based on state wages, not federal.

The whole tax system is so confusing! I just want to know if my benefits will be affected by these rates.

I work in payroll and can confirm the federal rate is 6.0% but with the credit it's 0.6% for most employers. This is completely separate from what claimants receive. Your Washington ESD benefits are calculated using a different formula based on your quarterly wages.

Does anyone know if the federal rate ever changes? I heard it was higher during the pandemic.

I got laid off in December and had to figure all this out too. The federal stuff doesn't matter for your claim - just focus on getting your Washington ESD weekly claims filed on time.

If you're still having trouble reaching Washington ESD with questions, I second the Claimyr recommendation. Used it last week and got connected to an agent in under an hour instead of the usual all-day calling marathon.

The 2024 rate is definitely 0.6% effective rate for most employers. Some states that borrowed federal money have higher rates but Washington isn't one of them.

I think I was overthinking this whole thing. Sounds like as long as I keep filing my weekly claims and do my job searches, the federal rate stuff doesn't matter.

This thread helped me understand too. I was worried about all the different rates but now I know it's just employer taxes that don't affect my benefits.