Which tax provides federal funding for unemployment insurance - Washington ESD question

So employers pay this, not employees? I don't see FUTA deductions on my paystub.

Correct - FUTA is paid entirely by employers. You won't see it on your paystub because it's not deducted from your wages.

I've been trying to get through to Washington ESD for weeks to ask about my claim status. Anyone know if there's a better way to reach them than the main phone line?

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 video demo at https://youtu.be/7DieNd3C7zQ and the site is claimyr.com. Saved me hours of calling.

That sounds too good to be true. How does it actually work?

Are we still in an extended benefits period? My claim ran out at 26 weeks.

Extended benefits trigger on and off based on state unemployment rates. You'd need to check with Washington ESD for current status.

The requirements exist to prevent fraud and ensure benefits go to people who lost jobs through no fault of their own. It's frustrating but there are legitimate reasons for the process.

still doesnt explain why it takes 3 weeks to process a simple claim

Thanks for the clear explanation! So when I'm getting Washington ESD benefits, part of that money comes from federal FUTA taxes?

Yes, but most of your regular benefits come from state taxes. Federal FUTA mainly funds administrative costs and provides loans to states when their funds run low.

That explains why some companies are so reluctant to lay people off. Higher unemployment taxes if they do it too much.

Exactly. It's designed to incentivize stable employment. Companies with low turnover pay lower rates.

Seriously try Claimyr - I was skeptical too but it actually worked. Got through to an agent same day and got my adjudication resolved. The service connects you directly instead of waiting in the phone queue.

How much does it cost? I'm already struggling financially.

I can't remember the exact cost but it was worth it to get my benefits flowing again. Check their site claimyr.com for current pricing.

Generally no - self-employed people don't pay unemployment taxes and aren't eligible for regular UI benefits. However, pandemic programs like PUA temporarily changed that.

So if I go freelance I won't be able to get unemployment benefits if work dries up?

Correct for regular benefits, though some states are exploring programs for gig workers. You'd need to check Washington state's specific rules.

This is way more complicated than I thought. I just wanted to know where my benefits come from!

The simple answer is: employers pay taxes (both federal FUTA and state SUTA) that fund your benefits. Everything else is just details about how the system works.

Different programs have different funding models. Unemployment is meant to be a cost of doing business for employers, while Social Security and Medicare are earned benefits for workers.

still seems weird to me but whatever

I tried that but kept getting disconnected. Maybe I'll try that Claimyr thing someone mentioned earlier.

Worth a shot. I've heard good things about services that help you get through to government agencies.

So part of my benefits could be coming from job training program funding?

Not exactly - the training programs are separate. But they're all part of the same federal workforce system funded by FUTA taxes.

That seems like a tiny amount to fund unemployment benefits for everyone.

The state taxes are much higher - that's where most of the funding comes from. Federal FUTA is more about administrative costs and emergency funding.

Perfect summary, thanks! This thread has been really helpful in understanding how the system works.

Agreed - I never realized how the funding structure worked before this discussion.

How does that work exactly? Do they just call for you?

They have a system that gets you connected to an actual agent instead of waiting in the regular phone queue. Check out their demo video at https://youtu.be/7DieNd3C7zQ to see how it works.

Same here - I thought it was like Social Security where we both contribute.

Nope, it's all employer-funded. Makes sense when you think about it as insurance against layoffs.

Still 6% gross rate with credits bringing it to 0.6% effective rate in most cases. That hasn't changed in several years.

Thanks! I'll use 0.6% for the calculations then.

Glad this helped! Always nice when a forum thread actually provides useful information.

Definitely! I learned way more than I expected about how unemployment benefits are funded.