Who funds unemployment benefits in Washington - confused about where the money comes from

That makes me feel better actually. So it's like insurance that employers have been paying into?

Exactly! It's called unemployment insurance for a reason. Employers pay premiums just like any other insurance policy.

So during COVID when benefits were extended, that was federal money?

yeah programs like PEUC and PUA were federally funded. regular UI is mostly employer-funded though

Never heard of that service. How does it work exactly?

It helps you get through to Washington ESD agents when the phone lines are jammed. Way better than spending hours trying to call.

Interesting, might have to check that out. I've been trying to reach someone about my job search requirements for days.

That seems fair. So companies that cause more unemployment claims pay more?

Right, it incentivizes employers to maintain stable employment. The rates can vary significantly between employers.

In Washington state, employees don't pay into regular unemployment insurance. You might be thinking of other deductions like disability insurance.

oh maybe that's what I'm thinking of then. good to know!

Tell me about it. I spent forever trying to figure out my weekly benefit amount calculation.

The benefit calculation is based on your highest earning quarter in your base year. It's actually pretty straightforward once you understand the formula.

Makes sense. Someone has to pay for all those systems and workers processing claims.

Yes, that's correct. States can take federal loans when their trust funds are depleted. During the 2008 recession and COVID pandemic, many states had to borrow.

Interesting. Do states have to pay that back?

They do, usually through higher federal unemployment taxes on employers until the loan is repaid.

Yeah it worked great for me. Finally got through after weeks of trying the regular number.

I was skeptical at first but tried it last week. Actually got connected to an agent who cleared up my adjudication issues.

Good to know. So in Washington it's 100% employer-funded for regular UI?

correct, employees don't contribute to the UI fund in washington state

That explains why the system was so overwhelmed in 2020!

Exactly. The volume of claims was unlike anything the system was designed to handle.

Most people don't think about unemployment insurance until they need it. It's just part of the cost of doing business for employers.

still would have been nice to know. makes me feel less guilty about collecting benefits

Are those the WorkSource services that Washington ESD keeps telling me about?

Yes, WorkSource Washington is partially funded through those federal programs.

Same here! This thread has been really educational.

That must be what I was thinking of earlier. Thanks for clearing that up!

Washington has been working on self-employment coverage but it's not fully implemented yet. You'd need to check with Washington ESD for current options.

I'll look into that. Probably another thing I'd need to call about if I can ever get through.

That's where Claimyr really helps - getting through those impossible phone lines to ask specific questions like that.

Exactly! And it makes me feel better about using it knowing employers have been paying in all along.

Government websites are notoriously bad at explaining things in plain language. They assume everyone already knows the basics.

Agreed! This has been super helpful. Makes me feel more confident about navigating the whole unemployment system.

Knowledge is power, especially when dealing with bureaucracy like Washington ESD.