What is unemployment tax on my paystub - Washington ESD question

So this is different from the federal unemployment tax? I thought that was just something employers paid.

Right, federal unemployment tax (FUTA) is employer-only. Washington's SUI tax is split between employee and employer contributions.

What's the wage base limit? Does that mean there's a cap on how much gets deducted?

Yes, for 2025 it's $68,500. So once you earn that much in a year, you stop paying the SUI tax for the rest of the year.

That's good to know! I was wondering why my deduction stopped showing up on my December paystubs last year.

What's a base period? This is all new to me.

It's typically the first four of the last five completed calendar quarters before you file your claim. Washington ESD uses this to determine if you earned enough to qualify.

How long did it take to get approved? I'm just curious in case I ever need to file.

It took about 3 weeks for me, but I know some people wait longer if there are complications or if they need adjudication.

I was stuck in adjudication for 6 weeks! Couldn't get through to anyone at Washington ESD to find out what was happening with my claim.

Really? I spent hours trying to call them. How does this service work?

It basically handles the calling and waiting for you. When an agent becomes available, they connect you directly. Saved me so much time and frustration.

Good to know this exists in case I ever need to contact Washington ESD about anything.

What's the Shared Work program?

It allows employers to reduce employee hours instead of laying people off. Employees can get partial unemployment benefits to make up for the lost wages.

The rate can change annually based on the trust fund balance and other factors. Washington ESD announces the rates each year.

Makes sense. I guess they need to adjust based on how many people are claiming benefits.

Only employees pay SUI tax. Independent contractors don't have it deducted because they're not considered employees for unemployment purposes.

that explains why i didnt see it when i was freelancing. thanks

Same here! I figured it was just another tax but didn't realize it was specifically for unemployment insurance.

That's a good way to think about it. Better to pay a little now than have nothing if something happens.

Exactly! And unlike some insurance, you know you're definitely paying into a system that could help you if needed.

That's the employer portion. Their rate is experience-rated based on their history of layoffs. The employee rate is the same for everyone.

Ah, that makes sense. So companies have an incentive to avoid unnecessary layoffs.

I might have to try this. I've been calling for days trying to get someone to explain why my claim is pending.

It's worth it when you're stuck. Much better than spending hours on hold or getting disconnected.

Exactly right. The tax just means you're contributing to the fund. Eligibility depends on your work history, reason for separation, and other factors Washington ESD evaluates.

Got it. Thanks for clarifying that - I was confused about whether paying the tax meant I was automatically covered.

How many states require employees to pay into unemployment insurance?

Only a few - Washington, Alaska, New Jersey, and Pennsylvania I think. Most states fund it entirely through employer taxes.

That's a nice way to look at it. Community support through the tax system.

Right, and it's there for you if you ever need it. Better to have it and not need it than need it and not have it.

You're welcome! It's always good to understand your paystub deductions.

And hopefully you never need to use the benefits, but it's there if you do!

Good tip! I usually throw them away but I'll start keeping them organized.

Digital copies work too if your employer provides them. Just make sure you can access them if needed.

That's exactly the kind of thing I'd be confused about. Good to know there's a way to get real answers.

Yeah, trying to navigate Washington ESD's automated system for complex questions is nearly impossible. Sometimes you just need to talk to a human.