Washington ESD what wages are subject to unemployment tax - confused about my employer's calculations
My employer just told me they've been calculating my unemployment tax contributions wrong for the past 6 months. They said something about certain wages being exempt from Washington ESD unemployment tax but I'm not sure what that means for my future claims. I work part-time and get some commission plus hourly wages. Does anyone know what wages are subject to unemployment tax in Washington? I'm worried this might affect my benefit calculation if I need to file a claim later.
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Isabella Costa
In Washington state, most wages are subject to unemployment tax up to the wage base limit. For 2025, that's $68,500 per year. Your employer pays this tax, not you directly, but it affects your benefit calculation later.
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Malik Jackson
•So my commission would be included in that calculation? My employer made it sound like some types of pay weren't counted.
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Isabella Costa
•Yes, commission is typically included as long as it's reported as wages on your W-2. The main exemptions are things like certain reimbursements or specific types of benefits.
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StarSurfer
ugh i had this same issue last year! my employer was being sketchy about what they reported to washington esd and it totally messed up my unemployment benefits when i got laid off
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Malik Jackson
•What happened with your benefits? Did you have to appeal or anything?
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StarSurfer
•yeah i had to go through this whole process to get my wages corrected. took forever to reach anyone at washington esd to explain the situation
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Ravi Malhotra
•If you're having trouble reaching Washington ESD directly, I used Claimyr recently and it was a game changer. They help you get through to actual agents instead of waiting on hold forever. Check out claimyr.com - they even have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.
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Freya Christensen
The Washington ESD has specific rules about taxable wages. Generally includes regular wages, overtime, bonuses, commissions, tips, and most other compensation. Main exemptions are reimbursements for business expenses, certain fringe benefits, and wages over the annual wage base.
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Omar Hassan
•What about severance pay? Is that subject to the unemployment tax too?
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Freya Christensen
•Severance pay is usually subject to unemployment tax when it's paid, but it might affect your eligibility for benefits depending on how it's structured and paid out.
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Chloe Robinson
wait so if my employer messed up the tax calculations does that mean my benefits will be wrong too?? this is making me panic
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Isabella Costa
•Don't panic! If there are errors in wage reporting, Washington ESD can correct them. You'll need documentation from your employer showing the correct wages.
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Chloe Robinson
•ok good to know... do i need to contact washington esd now or wait until i actually file a claim?
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Ravi Malhotra
For anyone struggling to get through to Washington ESD about wage reporting issues, I had success using Claimyr to connect with an actual agent. Much better than sitting on hold for hours. The service helps you navigate their phone system efficiently.
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Diego Chavez
•How much does something like that cost? Seems like it might be worth it if it actually works.
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Ravi Malhotra
•The value is definitely there when you consider how much time you save. Way better than losing hours of your day trying to reach them the regular way.
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NeonNebula
I'm an HR person and deal with this all the time. The wage base for 2025 is $68,500 as mentioned. Once an employee earns that much, no more unemployment tax is paid on their wages for that year. But ALL wages up to that point are subject to the tax.
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Malik Jackson
•That's really helpful! So if I'm making like $25,000 a year, all of my wages would be subject to the tax?
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NeonNebula
•Exactly! Since you're well under the wage base, all your regular wages, commission, overtime, etc. would be subject to unemployment tax.
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Anastasia Kozlov
•What about contractors? I do some 1099 work on the side - does that affect anything?
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NeonNebula
•1099 income isn't subject to unemployment tax and doesn't count toward your benefit calculation. Only W-2 wages from covered employment count.
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Sean Kelly
the whole system is so confusing honestly. why can't washington esd just make this stuff clearer on their website?
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Zara Mirza
•I know right? I spent like 2 hours on their site trying to figure out basic stuff about my claim.
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Sean Kelly
•same!! and good luck actually talking to a human being there
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Luca Russo
Just want to add that tips are definitely subject to unemployment tax if they're reported properly. I work in food service and this comes up a lot. Make sure your employer is reporting your tips correctly or it could hurt your benefit amount later.
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Nia Harris
•Oh wow, I never thought about that. How do you make sure they're reporting tips correctly?
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Luca Russo
•Check your pay stubs and W-2. The reported tips should match what you actually declared. If there's a big difference, you might need to talk to payroll.
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GalaxyGazer
This thread is super helpful! I had no idea about the wage base limit. Does that reset every year?
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Isabella Costa
•Yes, the wage base resets every January 1st. So even if you hit the limit in 2024, unemployment tax starts getting paid again on your 2025 wages.
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GalaxyGazer
•Got it, thanks! Learning so much here.
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Mateo Sanchez
Been dealing with Washington ESD for years and honestly the wage reporting stuff is one of the most misunderstood parts. Employers mess it up constantly and then workers suffer when they need benefits.
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Aisha Mahmood
•So true! My last employer didn't report my overtime correctly and it took months to get it fixed.
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Mateo Sanchez
•Exactly what I'm talking about. The system puts all the burden on workers to catch these mistakes.
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Ethan Moore
Quick question - what about holiday pay? Is that subject to unemployment tax too?
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Freya Christensen
•Yes, holiday pay is treated the same as regular wages for unemployment tax purposes.
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Ethan Moore
•Thanks! That makes sense.
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Yuki Kobayashi
I used Claimyr last month when I needed to verify my wage information with Washington ESD. Worked great - got connected to an agent in like 10 minutes instead of waiting hours. Really worth it when you need to resolve wage reporting issues quickly.
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Carmen Vega
•That's awesome! I've been putting off calling them because I know it'll take forever.
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Yuki Kobayashi
•Yeah, definitely check out their demo video if you're curious. Shows exactly how the process works.
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QuantumQuester
One thing to remember is that even if your employer messed up the tax calculations, Washington ESD can go back and correct the records. Just make sure you have documentation of your actual wages.
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Malik Jackson
•That's reassuring! I was worried I'd be stuck with whatever my employer reported.
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QuantumQuester
•Nope, they can definitely fix it. Just might take some time and documentation on your part.
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Andre Moreau
thanks everyone for all the info! this has been way more helpful than the washington esd website
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Zoe Stavros
•Agreed! Real people explaining this stuff is so much better than trying to decode government websites.
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Andre Moreau
•exactly!! wish i had found this thread sooner
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Jamal Harris
Just to summarize for anyone skimming - in Washington, unemployment tax applies to most wages up to $68,500 per year in 2025. This includes regular pay, overtime, bonuses, commissions, and tips. Main exemptions are business expense reimbursements and certain benefits. If your employer made mistakes, Washington ESD can correct the records.
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Mei Chen
•Perfect summary! Bookmarking this thread for future reference.
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Malik Jackson
•Yes, thank you all! I feel much better about the situation now and know what questions to ask my employer.
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Collins Angel
This is such an important topic! I went through something similar when I switched jobs last year. One thing I learned is that you should keep your own records of all your wages - pay stubs, direct deposit records, etc. Don't just rely on what your employer reports to Washington ESD. When I had to file a claim, having my own documentation made it much easier to spot discrepancies and get them corrected. Also, if you're part-time like the OP mentioned, make sure your employer is consistently reporting all your hours and wages, not just the regular ones.
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Chloe Taylor
•This is really solid advice! I learned this the hard way when my employer was inconsistent about reporting my commission payments. Having my own records saved me when I had to prove what I actually earned. For anyone dealing with variable income like tips or commission, definitely keep detailed records - it makes a huge difference if you need to file a claim later.
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