Which of the following is responsible for paying unemployment tax - Washington ESD question

Thanks! So it's just employers then? I was thinking maybe we both paid into it like Social Security.

Exactly - unemployment tax is 100% employer-funded in Washington. The rate varies based on the employer's experience rating and industry.

That explains why some employers get so upset about unemployment claims - it directly affects their tax rates.

exactly, higher claims = higher rates for them next year

I had no idea it was all employer funded. Makes sense why they fight claims sometimes.

Right, and that's why Washington ESD has such strict eligibility requirements - they want to make sure benefits only go to those who qualify.

What's the difference between SUTA and FUTA? Do they both go to Washington ESD?

SUTA goes to Washington ESD for regular unemployment benefits. FUTA goes to the federal government for administrative costs and extended benefits during recessions.

This is getting confusing. I just want to know who pays for my weekly unemployment benefits when I file my claims.

How does that work? I can never get through to Washington ESD on the phone.

You go to claimyr.com and they basically handle the calling for you. Way better than sitting on hold for hours.

So if a company lays off a bunch of people, their tax rate goes up the next year?

Exactly. That's why some employers will fight legitimate claims or try to claim the employee quit instead of was laid off.

I feel you. My employer contested my claim even though they clearly laid me off. Took 6 weeks to get approved.

6 weeks?? That's insane. Did you end up getting backpay for those weeks?

Yeah I got backpay but it was a nightmare. Had to call Washington ESD constantly to check on my adjudication status.

What industries have the highest rates? Construction?

yeah construction, seasonal work, restaurants - anything with high turnover

Do you see the actual tax rates? What's typical for a new business?

New employers in Washington start at around 2.7% but it can range from 0.21% to 6.02% depending on experience rating.

Wow that's a huge range. No wonder some employers get paranoid about claims.

Good for you for fighting it. Too many people just accept whatever the employer says.

yeah i had to do a phone interview with washington esd to explain what really happened

Simple and clear answer. Thanks for not overcomplicating it.

No problem. Sometimes these tax questions get confusing with all the different acronyms.

What kind of issue did you have? I'm stuck in adjudication hell right now.

My employer contested my claim saying I was fired for cause. Took forever to get a hearing scheduled through normal channels.

Right? Their website is confusing and you can never get anyone on the phone.

Exactly. The whole system needs an overhaul.

Makes sense why they sometimes fight claims then. It's a financial incentive for them.

Unfortunately yes. That's why Washington ESD has to investigate contested claims so thoroughly.

Is it expensive? I'm unemployed so money's tight right now.

worth it when you consider how much time you save not calling all day. plus if your claim is stuck you're losing money every week anyway

Good explanation. I always wondered where the money actually comes from.

Thanks everyone! This really cleared up my confusion about who pays unemployment tax.

That happened to me! They made my job impossible hoping I'd quit. Glad I stuck it out and made them lay me off properly.

smart move. always better to be laid off than quit if you might need unemployment benefits

Perfect summary. This thread was really helpful for understanding how the system works.

Thanks for the tip. I've been trying to call Washington ESD for days about my adjudication status.

That's exactly what Claimyr helps with. Way better than the endless hold music.