Who actually pays for UI benefits when I collect? Employer or my insurance payments?

You actually have a common misunderstanding here. In Washington state, employees do NOT pay into the unemployment insurance system - only employers do. The deduction you're seeing on your paystub is probably for Paid Family and Medical Leave (PFML), which is different from unemployment insurance. Employers pay unemployment taxes based on their history of layoffs (called an "experience rating"). When you collect benefits, it doesn't come from money you personally contributed, but from the employer-funded pool. And yes, when former employees collect benefits, it can potentially increase an employer's UI tax rate in future years.

ya i thought the same thing for like 3 years lol. its confusing af because they both have similiar names. but ya UI is paid by companies not us. thats why some bosses get all weird when u file for it

Just to add some clarity: Washington employers pay UI taxes on the first $56,500 of each employee's wages (for 2025). Their tax rate varies between 0.10% and 5.4% depending on their "experience rating" - how many former employees have claimed benefits. So yes, when you file a claim, you're not drawing from your own contributions, but from the employer-funded UI trust fund. This is why some employers contest claims - approved claims may increase their future tax rates. As others mentioned, the PFML deduction is separate and does come out of your paycheck (with employers also contributing a portion).

If you're having trouble getting through to ESD to ask these kinds of questions (which can be really confusing!), I recently used a service called Claimyr that helped me get through to an actual ESD agent without waiting for hours. You can check them out at claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 that shows how it works. I was skeptical but it actually got me connected to ESD when I needed to ask specific questions about my claim. The agent I spoke with explained the whole employer contribution system to me in detail.

I HAD THE EXACT SAME QUESTION!!! I was paying into the system for 7 YEARS thinking it was for unemployment and then found out it wasn't!!! The whole system is designed to CONFUSE people on purpose if you ask me. And then your employer has the NERVE to fight your claim even though THEY'RE the ones who laid you off!!! My last employer tried to claim I quit when they reduced my hours to basically nothing. THE SYSTEM IS RIGGED AGAINST WORKERS!!!

I've worked in HR for 15 years and want to clarify something important: employers DON'T pay unemployment insurance "when you collect." They pay unemployment taxes quarterly based on their payroll and experience rating. The money goes into the state's UI trust fund, which then pays out benefits to eligible claimants. So when you file a claim, you're not directly costing your employer money at that moment. However, approved claims can impact their experience rating, potentially increasing their tax rate in future years. That's why some employers contest claims they believe are invalid - not because they're paying for your specific benefits out of pocket right now. And yes, as others have said, in Washington, employees don't contribute to UI funding at all. The PFML program is separate and does include employee contributions.

When I was laid off last month my manager said something like "try not to stay on unemployment too long because it costs the company money" and I honestly thought she was lying to pressure me into taking the first job I could find!! Now I understand what she meant - she was worried about their tax rate going up. I wish companies would just be transparent about how this all works instead of making us feel guilty for using a benefit we're entitled to.