Washington ESD unemployment tax rate - how much do employers pay?

So it's not a flat rate for everyone? That's more complicated than I thought.

Right, it's experience-rated. Companies with fewer claims pay lower rates, those with more claims pay higher rates. It's designed to make employers who use the system more pay more into it.

What are social costs? Is that separate from the unemployment tax?

Social costs are an additional tax that funds job training and other workforce programs. It's collected along with your unemployment tax but it's a separate rate.

That sounds helpful, I've been dreading having to call them. How does that service work exactly?

They basically help you get through to Washington ESD agents when the phone lines are swamped. Way better than sitting on hold for 3+ hours like I was doing.

I might try that too, I've been trying to call about my rate notice for weeks.

What if you never have anyone file for unemployment? Do you get the lowest rate?

You can qualify for lower rates if you have a good experience rating, but there's still a minimum rate you have to pay. The rate schedule is published annually by Washington ESD.

The experience rating system is supposed to be fair - companies that rarely have claims shouldn't subsidize companies that have lots of turnover and claims.

i guess that makes sense but its still a pain to figure out what youll actually pay

Yes, that's right for your first year as a new employer. But remember there's also the social costs rate on top of that.

What's the social costs rate typically?

Social costs rate for 2025 is around 0.02% to 0.03% depending on your industry class. It's much smaller than the unemployment tax rate.

How long does it take for your rate to go back down after you have claims?

It takes a few years of no claims to get your rate back down. They look at your experience over multiple years, not just the current year.

Do they email the rate notices or send them by mail?

They mail them but you can also check your rate online through the Washington ESD employer portal if you're registered.

That's true, the overall rate schedule gets adjusted based on the health of the unemployment trust fund. During recessions or high unemployment periods, rates tend to go up across the board.

How often do you have to pay? Is it monthly or quarterly?

It's quarterly. Due dates are the last day of April, July, October, and January for the previous quarter's wages.

I couldn't find that tool when I was looking. Do you have a link?

It's buried in the employer section of the Washington ESD website. Search for 'tax rate calculator' or 'rate lookup' and you should find it.

That's good to know. I've been trying to understand why my rate went up this year and haven't been able to get anyone on the phone.

Yeah, getting through to them during normal business hours is nearly impossible. The claimyr service really helped me skip the endless hold times.

UBI number? What's that for?

Unified Business Identifier. It's Washington state's business registration number. You need it for unemployment taxes, workers comp, and other state requirements.

How much does that typically cost? I'm trying to decide if I should handle it myself or hire someone.

depends on your payroll size but probably a few hundred a year for quarterly filings. way less stressful than trying to figure it out yourself

That's concerning. I'm in retail so I might have some seasonal workers. Is there any way to minimize the impact?

Try to avoid layoffs if possible, and make sure you contest any questionable unemployment claims. Every approved claim affects your experience rating.

The wage base is tied to average wages in the state, so it typically increases annually. It's been going up faster in recent years due to wage inflation.

Yeah, I tried reading through it and got completely lost in all the jargon.

The key thing to understand is that it's based on your 'benefit ratio' - how much your former employees collected divided by your total taxable wages over a specific period.

How do you prove someone quit voluntarily vs. being laid off?

Documentation is key. Resignation letters, emails, witness statements if needed. Washington ESD will contact you if a former employee files a claim and you can provide your side of the story.

How far back do they look when calculating rates?

The agent said they typically look at 3-4 years of experience, but it depends on how long you've been in business and your specific industry class.

Thanks, that gives me a good starting point for budgeting. This thread has been really helpful.

You're welcome! Just remember to file your quarterly reports on time and keep good records. It'll save you headaches down the road.

That's really good advice about getting the UBI number early! I was just about to ask about timing for all this paperwork. How long did the processing take when you applied? I'm planning to hire in about 6 weeks so I want to make sure I get everything done in time.