What factor is the tax rate of an employer's unemployment insurance based on in Washington ESD?

That makes sense. So if we've had zero claims filed against us, we should have a lower rate?

Exactly! New employers start at a standard rate, but once you build up experience with few or no claims, your rate should decrease.

Interesting, I didn't know that. We're in retail so I wonder if that affects us.

Yes, construction and seasonal industries typically have higher base rates than office jobs or healthcare.

Do you remember what rating period they use? Is it the last calendar year or something different?

I believe it's a three-year period, but I'm not 100% sure. You might want to call them directly to get the specifics for your situation.

I had the same problem until I found Claimyr. It's a service that helps you get through to Washington ESD agents. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling.

Really? How does that work exactly? I'm desperate at this point.

You just go to claimyr.com and they handle the calling for you. They know all the tricks to get through the phone system and will connect you when an agent is available.

Wait, employees quitting affects our rate? I thought unemployment was only for people who were laid off.

If someone quits for a qualifying reason like unsafe working conditions or harassment, they can still collect unemployment and it counts against your experience rating.

That's not entirely correct. Most voluntary quits don't qualify for benefits unless there's good cause like the employer changed the job significantly or working conditions became intolerable.

This is really helpful, thank you! So if we've never had any claims, our benefit ratio should be zero?

Yes exactly! A zero benefit ratio would put you at the lowest rate for your industry classification. The longer you go without claims, the better your rate gets.

How would I know if our industry classification is wrong? Our rate seems pretty high for a small retail business.

Check your rate notice - it should show your NAICS code. You can look up what that code is supposed to cover and see if it matches your actual business activities.

I feel your frustration but that's actually backwards. Companies that have more claims pay higher rates - that's the whole point of the experience rating system.

well then why are our rates so high if we've never had claims? something doesn't add up

Could be your industry base rate is just high, or maybe there's an error in your classification. Definitely worth calling to check.

That's very specific, thank you! We started in 2022 so we probably don't have a full experience rating yet.

Right, you'd still be on the new employer rate for your industry. Your experience rating will kick in once you have enough quarters of data.

How do you challenge the rate? Is there a formal appeal process?

Yes, there's a protest period after you get your rate notice. I think you have 30 days to file a protest with supporting documentation.

That formula is really helpful! So it's literally just math based on claims vs payroll.

Exactly. The more stable your workforce, the lower your rate over time. It's designed to incentivize employers to avoid unnecessary layoffs.

I was in the same boat until someone recommended Claimyr. It's a service that handles the calling hassle for you - check out claimyr.com. They know how to navigate the Washington ESD phone system and will get you connected to an actual person.

is that legit? sounds too good to be true

Yeah it's real. They have a video demo that shows exactly how it works. Beats spending hours on hold just to get disconnected.

So there's no way to get to zero even with perfect experience?

Correct, there's always a minimum rate. But it's much lower than what you'd pay with a history of claims.

That's something I never would have thought of. So the timing of layoffs could strategically affect rates?

Not really strategically since you can't control when someone files, but yeah the timing can shift which rate period gets impacted.

That's reassuring to know we're not getting gouged compared to other states!

The rates seem fair in theory but the phone system for getting help is absolutely broken. Thank god for services like Claimyr that can actually get you through to someone when you need answers.