Washington ESD unemployment tax - what wages are subject to unemployment tax?

Thanks! So if I make $75,000 this year, only $68,500 of it would be subject to the unemployment tax?

Exactly right. Once you hit that wage base, no more unemployment tax is taken out for the rest of the year.

Tips are included in taxable wages for unemployment purposes. Your manager might be confused about different tax rules.

ugh great, another thing they're doing wrong. thanks for the info

Really? How does that work exactly? I've been trying to call Washington ESD for days about my wage base question.

It basically handles the calling for you and gets you connected to an actual person. Saved me hours of calling and getting busy signals.

What about stock options? My company gives RSUs as part of compensation.

Stock options and RSUs are generally subject to unemployment tax when they vest, but the timing can be complex. You'd want to check with Washington ESD directly.

I understand the frustration. The good news is that Washington ESD has your wage records from all employers, so you can check your account online to see what's been reported.

Where do I check that? I can't find it on the Washington ESD website

Log into your SecureAccess Washington account and look for wage information under your unemployment services section.

Do you know what it was for 2024? I'm trying to figure out if my benefits calculation is right.

I think it was around $64,000 for 2024, but don't quote me on that exact number.

Both employers should be taking it out, but only up to the combined wage base limit. So if you make $40k at each job, you'd only pay unemployment tax on $68,500 total.

Oh that makes sense. So I might get some back at tax time if they over-withheld?

Exactly, though unemployment tax refunds work differently than regular tax refunds. You'd need to file for a refund with Washington ESD specifically.

Yes, SUI stands for State Unemployment Insurance. That's the unemployment tax deduction.

ok cool, at least they're taking it out then

That's a good point. A lot of people get confused about 1099 vs W2 status and how it affects unemployment eligibility.

Yeah, definitely something to keep in mind when taking contract work.

I might try that. I've been calling for a week and keep getting the 'high call volume' message.

That's exactly why I started using it. Way less frustrating than the endless busy signals.

That's reassuring. I was worried that if my employer messed up, I'd be stuck without benefits.

The system is designed to protect workers from employer mistakes. Your benefits are based on what ESD has on file, not just what your employer reports.

Federal (FUTA) and state unemployment taxes are separate. Employers pay both, but employees only pay into the state system in Washington.

So the deduction I see on my paystub is just the state portion?

Correct. The federal portion is paid entirely by your employer, not deducted from your wages.

What kind of issues were you having? I'm worried about similar problems.

employer wasn't reporting all my overtime correctly. took forever to get washington esd to fix their records

Washington doesn't currently have a voluntary unemployment insurance program for self-employed individuals, unlike some other states.

Darn, that would have been nice to have as a safety net.

If your total wages including the bonus exceed $68,500, then yes, you'd stop paying unemployment tax once you hit that limit.

Good to know. My bonus usually comes in December so I'll keep an eye on that.

The wage base is adjusted annually based on average wages in Washington, so it does increase over time.

I guess that's something at least. Still feels low for Seattle area wages.

Same here! This has been really helpful.

Glad we could help clear things up. Unemployment tax rules can definitely be confusing at first.

That sounds like it could get really complicated.

It definitely can be. That's when you really need to talk to someone at ESD to sort it out.

I think I'm going to try that service. My situation is getting too complicated for online research.

Good call. Some things really do need to be discussed with an actual ESD representative.

You're welcome! Understanding how the system works definitely helps when you need to use it.

Agreed. I feel much more confident about my wage reporting now.