Washington ESD unemployment tax rate 2024 - employer contributions?
I'm trying to figure out what the unemployment tax rate is for 2024 in Washington state. My small business just hired our 3rd employee and I think we need to start paying into the unemployment system but I'm confused about the rates. Does anyone know what employers are supposed to pay to Washington ESD this year? I've been looking all over their website but it's not super clear.
54 comments


Emma Davis
Washington state unemployment tax rates vary by employer experience rating. For 2024, new employers typically start at around 2.7% of wages up to the wage base. Established employers can range from 0.17% to 6.0% depending on their claims history with Washington ESD.
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Javier Hernandez
•Thanks! What's the wage base amount for this year? Is it still around $68,000 per employee?
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Emma Davis
•For 2024, the taxable wage base in Washington is $71,000 per employee. So you'd pay the tax rate on the first $71K of each employee's wages.
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LunarLegend
don't forget about the social cost factor too - thats an additional charge on top of the experience rate
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Javier Hernandez
•What's the social cost factor? I've never heard of that before.
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Malik Jackson
•The social cost factor helps fund benefits for workers whose former employers are no longer in business. For 2024 it's 0.05% for most employers. Gets added to your base rate.
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Isabella Oliveira
If you're having trouble getting through to Washington ESD for employer questions, I used claimyr.com recently to connect with an actual agent. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helped me get my employer account questions answered without sitting on hold forever.
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Javier Hernandez
•How much does that service cost? I'm already stressed about the tax costs.
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Isabella Oliveira
•It's definitely worth it when you need to actually talk to someone at Washington ESD. Way better than trying to call directly and getting busy signals all day.
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Ravi Patel
You'll also need to register for a UBI account number with Washington ESD before you can start paying. Make sure you do this before your first quarter deadline or you might face penalties.
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Javier Hernandez
•How do I register for the UBI number? Is that through their website?
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Ravi Patel
•Yes, go to esd.wa.gov and look for employer services. You can register online but it takes a few weeks to process.
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Freya Andersen
ugh the washington esd employer system is such a pain to navigate. took me forever to figure out quarterly reporting when i started my business
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Javier Hernandez
•What was the hardest part about the quarterly reporting?
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Freya Andersen
•just understanding what wages to report and when. the deadlines are confusing and the penalties are harsh if you mess up
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Emma Davis
One important thing - Washington state also has paid family and medical leave (PFML) taxes that are separate from unemployment insurance. For 2024, the PFML rate is 0.8% total, with employers paying 73.06% of that premium.
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Javier Hernandez
•So that's another tax on top of the unemployment tax? This is getting expensive quickly.
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Emma Davis
•Yes, it's separate. The good news is employees pay part of the PFML premium through payroll deduction, unlike unemployment tax which is entirely employer-paid.
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Omar Zaki
Make sure you understand the difference between state unemployment tax (SUTA) and federal unemployment tax (FUTA). Washington doesn't have state income tax but the unemployment taxes can add up quick.
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Javier Hernandez
•What's the federal rate?
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Omar Zaki
•FUTA is 6.0% but you get a credit for paying state unemployment tax, so it usually ends up being 0.6% on the first $7,000 of wages per employee.
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CosmicCrusader
been running a business in wa for 15 years and the rates definitely fluctuate based on how many former employees file claims against your account
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Javier Hernandez
•How much can the rate change year to year?
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CosmicCrusader
•i've seen it swing from under 1% to over 4% depending on layoffs and claims. thats why they call it experience rating
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Malik Jackson
If you're just starting out with 3 employees, your quarterly payments won't be huge at first. The 2.7% new employer rate on $71K wage base means maximum $1,917 per employee per year, plus the social cost factor.
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Javier Hernandez
•That's actually not as bad as I was expecting. Thanks for breaking down the math!
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Malik Jackson
•Just remember to pay quarterly and file your reports on time. Late penalties can be steep with Washington ESD.
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LunarLegend
also check if any of your employees work in multiple states - that can complicate which state gets the unemployment tax
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Javier Hernandez
•All my employees work in Washington, so I think I'm good there.
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Isabella Oliveira
Just to follow up on the Claimyr thing - I know it sounds sketchy but it really does work for getting through to Washington ESD when you have urgent employer questions. Saved me hours of calling and redialing.
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Ravi Patel
•I might try that next time I have to deal with a complicated employer issue. The phone system at ESD is brutal.
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Chloe Robinson
dont forget you might also need workers comp insurance which is separate from unemployment but also required
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Javier Hernandez
•Oh great, another thing to research. Is that through Washington ESD too?
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Chloe Robinson
•no thats through the department of labor and industries (L&I). different agency, different requirements
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Freya Andersen
honestly just hire a payroll company if you can afford it. they handle all this tax stuff automatically and you dont have to worry about missing deadlines
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Javier Hernandez
•Any recommendations for payroll companies that are good with Washington state requirements?
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Freya Andersen
•i use paychex but there are lots of options. just make sure they know washington esd requirements
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Emma Davis
One more tip - keep detailed records of all wages paid and unemployment taxes paid. Washington ESD can audit employer accounts and you'll need documentation going back several years.
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Javier Hernandez
•How far back do they typically audit?
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Emma Davis
•Usually 3-4 years, but they can go back further if they suspect fraud or significant underreporting.
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Diego Flores
the rate notices usually come out in december for the following year so keep an eye out for your 2025 rate notice toward the end of this year
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Javier Hernandez
•Good to know! I'll watch for that.
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Omar Zaki
Also remember that if you have seasonal employees or irregular hours, you still need to report all wages and pay unemployment tax on them. Can't just ignore temporary workers.
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Javier Hernandez
•We don't have seasonal workers yet but good to keep in mind for the future.
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Anastasia Kozlov
been through a few unemployment audits over the years - definitely keep good records and respond quickly if esd contacts you
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Javier Hernandez
•What triggered the audits? Just random selection?
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Anastasia Kozlov
•mix of random and targeted. one time it was because our rate seemed low compared to similar businesses in our industry
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Isabella Oliveira
If anyone needs to contact Washington ESD about employer account setup or tax rate questions, seriously consider using claimyr.com. The regular phone lines are impossible and this actually gets you through to someone who can help.
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Malik Jackson
•I've heard good things about that service from other business owners. Sometimes you just need to talk to a real person at ESD.
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Javier Hernandez
Thanks everyone for all the helpful info! Sounds like I need to get registered for a UBI number ASAP and start planning for quarterly payments. This thread has been super helpful.
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Emma Davis
•Good luck with your business! The unemployment tax process gets easier once you're in the system and understand the routine.
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Freya Andersen
•yeah once you get through the first year its pretty straightforward. just dont miss any deadlines!
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Sean Flanagan
one last thing - if you ever need to protest your unemployment tax rate or dispute a claim against your account, you have appeal rights. dont just accept whatever esd says
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Javier Hernandez
•Good to know I have options if something goes wrong. Hopefully won't need that anytime soon.
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