Who has to pay unemployment tax in Washington - confused about employer vs employee requirements

That makes sense! I was getting worried I was missing something important. So my employer handles all the unemployment tax payments?

Exactly. Your employer pays based on their payroll and experience rating with Washington ESD. You don't need to worry about paying anything directly.

Good to know about the federal part too. Thanks for clarifying!

This is helpful info. I had no idea the tax rate changed based on how many people filed claims against a company.

Yes, it's called an experience rating system. Companies with more claims pay higher rates, which is supposed to incentivize good employment practices.

Interesting, I've never heard of that service. Does it actually work for getting through to Washington ESD?

Yeah it worked for me. I was trying to get clarification on my adjudication status and couldn't get through the normal way. Saved me hours of redialing.

That's correct. The tax rates are set annually and can range from around 0.2% to over 5% of wages depending on the employer's experience rating and industry classification.

Wow, that's a big range. I work in retail so I wonder where that falls.

Good question! Just because taxes were paid doesn't mean every separation qualifies for benefits. You still need to meet eligibility requirements like being laid off through no fault of your own, being able and available for work, and meeting the wage requirements.

Ah ok, so the taxes create the fund but you still have to qualify to access it. That makes sense.

Exactly. The taxes fund the system, but Washington ESD still has to verify each claim meets the legal requirements for benefits.

So there's a cap? I didn't know that. Thanks for the insider info!

Yep, the wage base changes annually. It's been going up pretty steadily over the years.

How would you even know if your employer wasn't paying? Is there a way to check?

You can contact Washington ESD to verify your wage and tax information is being reported correctly. They maintain records of all employer payments and wage reports.

That sounds like a nightmare! How did she eventually get it resolved?

She had to provide pay stubs and tax documents to prove her wages. Washington ESD eventually approved her claim but it took months instead of weeks.

This is exactly why services like Claimyr are so helpful. When you need to reach Washington ESD about complex issues like missing wage reports, getting through to an actual agent is crucial.

That's a pretty fair system actually. Companies that create more unemployment claims pay more into the system.

Right, it's designed to make the cost of unemployment insurance reflect the actual risk each employer presents to the system.

Generally correct - independent contractors aren't covered by traditional unemployment insurance because no employer is paying taxes on their behalf. However, Washington has been expanding coverage to some gig workers in recent years.

Good to know I should look into that. I wasn't sure if I'd be eligible if work dried up.

There are federal tax credits like the Work Opportunity Tax Credit, but those are separate from unemployment insurance taxes. The WOTC affects income tax liability, not SUTA rates.

Thanks for clarifying that distinction!

Washington did maintain a relatively healthy trust fund balance, which helped during the unprecedented claims volume in 2020-2021. The state's approach to maintaining adequate reserves paid off.

that's actually pretty impressive considering how many people were out of work during covid

You're welcome! Just remember to keep your pay stubs and tax documents in case you ever need to file a claim. Having that documentation makes the process much smoother.

Will do! Thanks everyone for all the helpful information.

Yes, each employer pays unemployment tax on the wages they pay you, up to the annual wage base limit. So if you work multiple jobs, all your employers contribute to your potential benefit eligibility.

That's good to know. I work two part-time jobs so it's nice that both are contributing.

Exactly! Though like I mentioned earlier, it's worth checking occasionally that your wage information is being reported correctly to Washington ESD.

Good point. Better to catch any issues early than when you actually need to file a claim.

Seems like a lot of people have had good experiences with that service. I'll keep it in mind if I ever need to reach Washington ESD.

Yeah, their system at claimyr.com really works. Much better than trying to call during regular business hours and getting a busy signal.

Glad it helped! Understanding how the system works makes it less intimidating if you ever need to use it.

Definitely! Knowledge is power when it comes to navigating government programs.

That's an important point. Employers who don't pay their taxes properly create problems for employees and strain the system for everyone else.

Exactly. The system only works when everyone participates properly.

You've got it! The system is designed so employees don't have to manage the tax side of things. Just focus on your work and keep good records.

Perfect. One less thing to stress about in an already complicated world!