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Eli Butler

When does a company have to pay unemployment benefits in Washington state?

I got laid off from my job last month and I'm wondering about the unemployment process. My former employer is saying they might contest my claim because they think I quit voluntarily, but I was definitely laid off due to budget cuts. When exactly is a company required to pay into unemployment benefits for their employees? I want to understand my rights here because I'm worried they're going to try to block my Washington ESD claim. The whole situation is stressing me out and I need to know what to expect.

Companies in Washington are required to pay unemployment taxes (SUTA) for all eligible employees as long as they meet certain payroll thresholds. This funding goes into the state unemployment insurance fund that pays out benefits. However, the company paying into the system doesn't automatically mean they can't contest individual claims.

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So they've been paying into the system but can still fight my claim? That doesn't seem fair.

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Unfortunately yes, they can contest claims if they believe the separation wasn't qualifying. But if you were truly laid off due to budget cuts, you should have a strong case.

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I went through something similar last year with my employer trying to contest my claim. The key thing is having documentation about your layoff. Do you have anything in writing from HR or your supervisor about the budget cuts?

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I have an email from my manager mentioning the department restructuring, but nothing specifically saying I was laid off.

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That email could be helpful! Save everything you have related to the layoff situation.

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If you're having trouble getting through to Washington ESD to discuss your claim status, I found this service called Claimyr that helped me connect with an actual agent. You can check them out at claimyr.com and they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helped when I needed to clarify some issues with my claim.

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Thanks for the suggestion! I've been trying to call Washington ESD for days with no luck.

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I've heard mixed things about these third-party services. How much did it cost you?

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It was worth it for me to avoid the endless hold times. The value was in actually getting to talk to someone at Washington ESD about my specific situation.

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To answer your original question more directly - employers in Washington must pay unemployment taxes on wages up to a certain annual limit for each employee. The rate depends on their experience rating (how many former employees have claimed benefits). Companies with more claims pay higher rates.

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So that's why some employers try to contest legitimate claims? To keep their rates down?

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Exactly. Higher claim rates mean higher tax rates for the employer, so some will contest claims even when they shouldn't.

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That makes sense why they're being difficult about this. It's all about money for them.

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ugh this happened to me too!! my old job tried to say i quit when they clearly eliminated my position. it took FOREVER to get it sorted out but washington esd eventually approved my claim. just be patient and keep all your documentation.

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How long did the whole process take for you?

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like 6 weeks total because of the back and forth with adjudication. was super stressful but worth fighting for

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One important thing to note - even if your employer contests the claim, you should continue filing your weekly claims while the adjudication process is happening. If you're ultimately approved, you'll get back pay for those weeks.

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I wasn't sure about that! Should I keep doing job searches too during this time?

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Yes, definitely keep doing your job searches and logging them. The work search requirements still apply even during adjudication.

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This is crucial advice. I made the mistake of not filing weekly claims during my contest period and lost out on some benefits.

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The Washington ESD website has a good section explaining employer responsibilities for unemployment insurance. Basically any business paying wages of $1,000 or more in a quarter has to participate in the system.

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My company definitely meets that threshold, so they've been paying in all along.

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Right, so the money for your benefits is already there in the system. It's just a matter of proving you're eligible to receive it.

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I'm dealing with something similar right now. My employer is claiming I was fired for cause but it was really just a personality conflict with my supervisor. The whole system seems stacked against workers sometimes.

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Misconduct has a very specific definition under Washington unemployment law. Simple personality conflicts usually don't qualify as misconduct unless there were policy violations.

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That's what I'm hoping. I never received any written warnings or anything like that.

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Keep records of everything! Any emails, performance reviews, anything that shows you weren't committing misconduct.

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For what it's worth, I used Claimyr too when I needed to get through to Washington ESD about an overpayment issue. The regular phone lines were impossible but their service got me connected pretty quickly. Might be worth trying if you need to speak with someone about your contested claim.

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I'm definitely going to look into that. I feel like I need to talk to someone directly about my situation.

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Make sure you have all your claim details ready before you call. They'll want your Social Security number and claim confirmation number.

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The bottom line is that employers pay into unemployment insurance as a cost of doing business, but they can still challenge individual claims. It's frustrating but that's how the system works in Washington.

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At least I know it's not unusual for employers to contest claims. Makes me feel less like I did something wrong.

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You didn't do anything wrong! Companies contest claims all the time, even legitimate ones. Stand your ground.

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just want to say good luck with your claim! i know how stressful it is when you're already dealing with job loss and then have to fight for benefits you're entitled to. hang in there!

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Thank you! It really helps to know other people have been through this and come out okay.

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One more technical point - employer unemployment tax rates in Washington range from about 0.2% to over 5% of wages, depending on their claims history. New employers start at a standard rate until they build up experience ratings.

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So newer companies might be more likely to contest claims since they're still building their rating?

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Possibly, though the standard new employer rate is usually somewhere in the middle range, so it could go either way.

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I work in HR and can tell you that most legitimate layoffs don't get contested. If your employer is fighting a clear layoff due to budget cuts, they're probably just being difficult. Document everything and be prepared to explain the circumstances to Washington ESD.

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That's reassuring to hear from someone who works in HR. I was starting to doubt myself.

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Don't doubt yourself. Layoffs for economic reasons are exactly what unemployment insurance is designed for.

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Agreed. Companies that contest obvious layoffs are just trying to save money on their tax rates at employees' expense.

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Has anyone dealt with the appeals process if the initial claim gets denied? I'm worried about what happens if my employer's contest is successful.

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Yes, you can appeal any negative determination. You'll get information about the appeals process if your claim is initially denied. There are deadlines to meet though.

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I went through the appeals process last year. It's more formal but if you have good documentation, you can often win on appeal even if the initial decision went against you.

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The whole unemployment system can be confusing but remember that it exists to help workers who lose their jobs through no fault of their own. Your situation sounds exactly like what the system is meant to cover.

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Thanks everyone for all the advice and support. I feel much more confident about handling this situation now.

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You've got this! Keep us updated on how it goes.

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One last tip - if you do end up needing to reach Washington ESD directly about your claim status or the contest, that Claimyr service mentioned earlier really does work. I was skeptical at first but it saved me hours of trying to get through on my own.

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I'm definitely going to try that if I can't get through the regular way. Thanks for the recommendation!

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Same here, I used it last month when I had questions about my job search requirements. Much easier than the regular phone system.

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Good luck with everything! Remember to keep filing those weekly claims no matter what happens with the contest. You don't want to miss out on benefits you're entitled to.

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Will do! I really appreciate everyone taking the time to help me understand all this.

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