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.

This is such a helpful thread! I had no idea that employers pay all the UI taxes and employees don't contribute anything directly. I've been working in WA for about 8 years and always assumed that little deduction on my paystub was for unemployment insurance. Now I realize it's the PFML contribution instead. It's actually kind of reassuring to know that when I had to file for unemployment two years ago after my company downsized, I wasn't "using up" money I had personally paid in - I was accessing benefits from a system my employer had been funding all along. Thanks everyone for breaking this down so clearly!

This whole thread has been incredibly eye-opening! I've been working in Washington for about 3 years and just like everyone else, I thought that PFML deduction was for unemployment insurance. It's honestly a bit shocking that employees don't contribute anything to UI - I feel like this should be way more clearly communicated. What really gets me is how some employers try to make you feel bad about filing when they're the ones who have been paying into the system specifically for this purpose. Like, isn't that literally what unemployment insurance is FOR? If they didn't want to deal with potential rate increases, maybe they shouldn't lay people off! Thanks to everyone who shared their knowledge here - especially the HR person who explained how the quarterly payments and experience ratings work. This is the kind of practical information that should be taught in employee orientation but never is.

This thread has been so helpful! I just got hired at my first job in Washington and was completely confused about all the deductions on my paystub. Reading through everyone's explanations about how UI is entirely employer-funded while PFML comes from both employer and employee contributions really cleared things up for me. What bothers me is that this information isn't made clear upfront - like during new hire paperwork or orientation. I can see how so many people would assume they're paying into unemployment insurance when they see deductions coming out of their check. It seems like basic worker education that should be provided by employers or maybe even ESD itself. I'm definitely bookmarking this conversation for future reference, and I'll make sure to share this knowledge with other new workers I meet. Thanks everyone for taking the time to explain such an important but confusing system!

This has been such an educational thread! I'm fairly new to Washington (moved here about 6 months ago from Oregon) and I've been totally confused about this whole system. In Oregon, employees DO contribute to unemployment insurance, so when I saw the PFML deduction on my Washington paystub, I just assumed it was the same thing with a different name. Now I understand that Washington's UI system is completely employer-funded, which actually makes me feel better about having filed for benefits when my previous job ended due to company restructuring. My former supervisor made some comment about "hoping I wouldn't stay on unemployment too long" and I thought she was just being supportive, but now I realize she was probably worried about their experience rating! It's honestly kind of frustrating that this basic information about how our unemployment system works isn't more readily available or clearly explained. I had to stumble across this community discussion to finally understand something that directly affects my rights as a worker. Thanks to everyone who shared their knowledge here - especially those with HR experience who broke down the technical details about tax rates and experience ratings.