Washington ESD unemployment tax rate 2025 - employer questions

So if I'm paying Washington ESD unemployment taxes on time, I only pay 0.6% federal? That's way better than I thought.

Exactly! Washington state is not a credit reduction state, so you get the full 5.4% credit as long as you pay your state unemployment taxes on time.

Right, I knew there was a state component too. Do you know what the Washington ESD rate is for new employers?

New employers in Washington typically start at 2.7% for the first few years until they build up an experience rating. The exact rate depends on your industry classification.

Wait, you can actually get through to Washington ESD without waiting forever? How does that work?

Yeah it was crazy, I thought it was too good to be true but it actually worked. They handle the calling and waiting for you so you don't have to sit on hold.

Sounds like a scam to me... why would you pay someone to make a phone call?

That's helpful to know for budgeting purposes. Is the Washington state wage base the same amount?

No, Washington state has a much higher wage base - I believe it's around $68,500 for 2025, but you should verify that with Washington ESD directly.

Tell me about it! I thought starting a business would be the hard part, but the paperwork is killing me.

It gets easier once you get into a routine with it. Just make sure you set aside money for all these taxes throughout the year.

Good point! I'm planning to hire someone next month so I better get started on that registration.

Yeah definitely don't wait. I made that mistake and had to scramble to get everything sorted out.

That's actually reassuring that it's stable. Makes planning easier.

Yeah the federal side is pretty predictable. It's the state rates that tend to fluctuate more.

I used it last month to get help with an unemployment claim issue. Worked exactly like they said it would. Worth checking out if you're stuck.

I still think it's weird to pay someone to make phone calls for you, but if it works...

Sometimes you gotta do what you gotta do. Washington ESD phone lines are impossible otherwise.

Oh great, another thing to research. Is that separate from unemployment insurance?

Yes, Washington has paid family and medical leave that's separate from unemployment insurance. You'll need to register for that too.

Yikes, I definitely don't want to deal with penalties. What kind of deadlines are we talking about?

Quarterly reports are due by the last day of the month following the end of each quarter. So April 30, July 31, October 31, and January 31.

That's why I ended up hiring a payroll service. It's worth the cost to not have to worry about screwing up tax calculations.

I'm starting to think that might be the way to go. This is more complicated than I expected.

When you put it that way, it doesn't sound too terrible. I was worried it would be way more expensive.

Yeah the federal part is pretty reasonable. It's all the other payroll taxes that add up quickly.

Good advice. I'm trying to set up a good bookkeeping system from the start.

Smart move. It's much harder to go back and organize everything later.

I'll try that if I can't figure things out online. Thanks for the tip!

Or use that Claimyr service people keep mentioning. Might be worth it to avoid the headache.

That's reassuring to hear. I'm hoping it gets easier once I'm in a routine.

It definitely does. After a while it becomes just another part of your quarterly tasks.

Thankfully all my employees will be in Washington, so I don't have to worry about that complexity.

Yeah that's definitely the easier scenario. Multi-state payroll is a nightmare.

I'll check those out. Online resources are usually easier than trying to reach someone by phone.

Agreed, their employer portal is actually not bad once you get used to it.

Good luck with your new business! The tax stuff is intimidating at first but you'll get the hang of it.

Yeah, and don't hesitate to ask for help when you need it. Better to get it right the first time.