What do employees pay into unemployment - Washington ESD contribution questions

Oh okay, so it's not just employers funding it. Do you know what the actual rate is? My paystub isn't super clear on the breakdown.

The employee contribution rate changes annually but it's typically around 0.4% to 0.6% of your gross wages up to a certain wage cap. The exact rate for 2025 should be on the Washington ESD website.

Interesting, I didn't know it varied by state. At least it's not a huge amount I guess.

That makes sense. So when I potentially file for unemployment, I'm basically getting back some of what I paid in plus employer contributions?

Exactly. Your benefit amount is calculated based on your earnings history, but you're drawing from a fund that both you and your employers have contributed to over time.

Wait I thought unemployment was just free money from the government lol. Had no idea we were actually paying into it ourselves

Thanks for the tip! I've heard calling Washington ESD can be a nightmare. How does that service work exactly?

Basically they handle the calling and waiting for you, then connect you when they get an agent on the line. Saved me probably 6 hours of calling myself.

15 years! That's a long time contributing. Did you have any issues when you filed your claim?

Had some adjudication issues at first because my employer contested it, but it got sorted out eventually. The waiting was stressful though.

adjudication is the worst part of the whole process. sitting there wondering if youre gonna get approved while bills pile up

Wow, that's actually pretty reasonable when you break it down like that. Thanks for doing the math!

Is that rate the same for everyone or does it vary by industry or something?

Employee rate is the same across all industries. Employer rates vary based on their experience rating and industry type, but employees pay the same percentage regardless of where they work.

That's exactly how unemployment insurance works - it's a social safety net funded by workers and employers to help during temporary job loss.

You might also see Family Medical Leave (PFML) deductions, which are separate from unemployment insurance. That's for paid family and medical leave benefits.

ah okay that explains the other one I was seeing. thanks

Really? So in Oregon only employers pay into unemployment?

yeah exactly. each state does it differently. some have employee contributions, some dont

Correct. Once your wages for the year exceed the taxable wage base ($68,500 for 2025), you stop paying the unemployment insurance tax for the remainder of that calendar year.

Good to know. I was wondering why my deduction stopped showing up in December last year.

It's only for W2 employees. Independent contractors (1099) don't pay into unemployment insurance and typically aren't eligible for regular unemployment benefits.

That makes sense. I do both W2 and contract work so good to understand the difference.

That's reassuring to hear. I'm hoping I won't need to use it but it's good to know it's there.

Same here. Filed for benefits after my company closed and the process wasn't too bad once I got through to Washington ESD.

Employees only pay state unemployment tax. Federal Unemployment Tax Act (FUTA) is paid only by employers, not employees.

Got it, thanks for clarifying that!

I'm definitely going to keep that in mind if I need to call Washington ESD. The phone system sounds brutal.

Its really that bad? I havent had to call them yet but hearing all these horror stories

Yeah the wait times are insane and you often get disconnected. Having a service handle the waiting for you is worth it.

Glad it helped you too! It's definitely confusing when you first see all these deductions.

The rate is set annually and doesn't change mid-year. Washington ESD announces the rates for the upcoming year usually in late fall.

Makes sense for planning purposes. Thanks!

Which state did you come from? Just curious about the differences.

Texas. The benefits there are much lower and don't last as long. Washington's system is definitely more robust.

That's exactly the right way to think about it - it's insurance. You hope you never need it, but you're glad it's there if you do.

Agreed. This whole discussion really helped me understand how the system works. Thanks everyone for all the detailed explanations!

Good point. I'll keep that in mind if I end up in that situation. Better to know the requirements ahead of time.

yeah the job search thing caught me off guard when i first filed. you have to apply to like 3 jobs a week and keep track of it all

Exactly. And they can audit your job search activities, so it's important to keep good records of your applications and networking efforts.