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Lucas Parker

Who pays for unemployment benefits in Washington - employer or state?

I'm trying to understand how unemployment insurance actually works in Washington state. When I get my weekly UI payments, where does that money actually come from? Is it my former employer paying for it, or does it come from the state? My coworker said employers pay into some kind of fund but I'm not sure if that's right. Also wondering if this affects whether my old boss can contest my claim or not.

Unemployment benefits in Washington are paid from the Unemployment Insurance Trust Fund, which is funded by employer payroll taxes. Your employer doesn't pay your benefits directly - they pay into the state fund through quarterly UI taxes based on their payroll and experience rating.

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So my employer isn't writing checks directly to Washington ESD for my benefits? That's a relief, I was worried they'd be less likely to give me a good reference.

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Correct, but your claim can affect their experience rating which impacts their future tax rates. However, most employers understand this is part of doing business.

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Your employer pays unemployment taxes to fund the system. It's called SUTA (State Unemployment Tax Act) in Washington. They pay quarterly based on their payroll and experience rating.

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So my boss is basically paying for my unemployment? That's awkward...

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Not directly - they pay into the system whether employees collect or not. It's like insurance.

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Unemployment insurance in Washington is funded through payroll taxes paid by employers, not employees. Your former employer doesn't directly pay your benefits - they pay quarterly taxes to Washington ESD based on their payroll and experience rating. The state manages the trust fund that actually pays out benefits.

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So my employer can't just decide to stop paying my benefits if they're mad about me filing?

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Correct, they can't stop payments once you're approved. However, they can contest your initial claim if they believe you weren't eligible (like if they fired you for misconduct).

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Your unemployment benefits are funded through employer payroll taxes, not your personal taxes or state general funds. Every employer in Washington pays into the unemployment insurance trust fund based on their payroll and their experience rating. Don't feel bad about filing - you earned this protection through your work.

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So my boss was right that it affects them? Should I feel guilty about filing?

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No guilt needed! Employers pay these taxes specifically to cover unemployment claims. It's like insurance - they pay premiums whether claims happen or not.

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Your employer doesn't pay your benefits directly. Washington ESD unemployment benefits are funded through payroll taxes that employers pay quarterly. It's called the State Unemployment Tax Act (SUTA) tax. Employers pay into a fund based on their payroll and their experience rating - companies with more layoffs pay higher rates.

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So my employer already paid into the system? They can't refuse to let me collect benefits?

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Exactly. They already paid the taxes. They can contest your claim if they think you were fired for misconduct, but they can't just refuse to let you collect.

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employers pay unemployment taxes every quarter to Washington ESD, its not like they get a surprise bill when you file. The rate they pay depends on how many former employees have filed claims but they budget for this stuff

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exactly, and if they're a decent sized company the impact of one claim is pretty minimal on their overall rate

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That makes me feel better. I was picturing them getting some huge unexpected bill because of me.

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employers definitely pay for it through taxes but the amount they pay depends on how many former employees file claims. companies with more layoffs pay higher rates

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This is why some employers fight unemployment claims even when they know the person deserves it - they're trying to keep their tax rates low.

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Your employer pays unemployment taxes to fund the system, but they don't pay your specific claim directly. Washington ESD collects taxes from all employers and uses that pool to pay benefits. Your boss is just being dramatic.

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That makes me feel better. He was acting like each payment was coming straight from his bank account.

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some employers get higher tax rates if they have lots of claims though so maybe thats why hes upset

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employers definitely pay for it through payroll taxes but dont worry about it affecting them personally

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Good to know, I was worried my manager would be mad about me filing

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I had a similar question when I was trying to reach Washington ESD about my claim status. Spent hours on hold trying to get through to someone who could explain the funding process. Finally found this service called Claimyr (claimyr.com) that helps you actually connect with ESD agents. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Made it way easier to get my questions answered directly.

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How much does something like that cost? I'm already struggling financially.

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They focus on getting you connected rather than charging crazy fees. Worth checking out their site for the details since it saved me so much time and frustration.

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Employers in Washington pay unemployment insurance taxes based on their experience rating. Higher turnover and more claims can increase their tax rate over time, but they're not paying your benefits directly. The Washington ESD manages the trust fund that pays all benefits.

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So there is some connection between my claim and what he pays? I don't want to screw him over.

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There's a long-term connection but it's indirect. Don't worry about it - you paid into this system through your work and deserve the benefits.

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exactly, you earned those benefits by working and having taxes withheld

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Employers pay unemployment taxes to fund the system. Washington ESD collects these taxes from all employers based on their payroll and claim history. The state then pays out benefits from this fund.

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So my old boss wasn't wrong about it costing them? That's awkward.

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Their unemployment tax rate might go up if they have a lot of claims, but they're not paying your benefits directly. It's spread across all employers in Washington.

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It's funded through employer payroll taxes, not directly from your former employer's pocket. Washington ESD collects unemployment insurance taxes from all employers based on their payroll. Your individual claim doesn't come directly from your old boss, but it can affect their future tax rates.

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So my boss was being dramatic? He made it sound like he was personally writing me a check every week lol

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Pretty much! The money comes from a pooled fund that all employers pay into. Your boss might see higher rates next year if they have lots of claims, but that's the cost of doing business.

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Your employer pays unemployment taxes to Washington ESD throughout the year based on their payroll. These taxes fund the unemployment insurance program. When you file a claim, it doesn't come directly out of your employer's bank account - it comes from the unemployment insurance fund that all employers pay into. Your employer's tax rate might go up in future years if they have a lot of claims, but that's how the system is designed to work.

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I had the same worry when I got laid off last year! Turns out employers in Washington pay SUTA tax (State Unemployment Tax Act) on every payroll. The money goes into a big fund that pays everyone's claims. Your individual claim doesn't directly hit your old employer's bank account or anything like that.

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SUTA tax - is that different from the federal unemployment tax?

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Yes, there's federal FUTA tax too but that's separate. Washington ESD benefits come from the state SUTA contributions.

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There are actually two parts to unemployment funding in Washington. Employers pay the SUTA tax to the state, and there's also a federal unemployment tax (FUTA) that helps fund the system. The money goes into a trust fund that Washington ESD uses to pay benefits.

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Do employees pay anything into unemployment insurance?

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In Washington state, employees don't pay into unemployment insurance. It's 100% employer-funded through payroll taxes.

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Your employer is probably being difficult because their unemployment tax rate can go up if they have a lot of claims. Companies with higher turnover pay more into the system. But that doesn't mean they can stop you from filing - you earned those benefits.

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That makes sense why they're being weird about it. I was worried they could somehow block my claim.

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If you're having trouble getting through to Washington ESD to file your claim, I actually found this service called Claimyr that helps you get through their phone lines. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Had trouble getting through to Washington ESD to verify my claim details but found this service called Claimyr (claimyr.com) that actually got me connected to a real person. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Super helpful when you need to talk to someone about your benefits funding or any other questions!

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I'll check that out if I need to call Washington ESD. The phone lines seem impossible to get through on.

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yeah the wait times are brutal, anything that helps get through faster is worth it

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The whole system is designed so individual employers can't control whether you get benefits or not. Washington ESD makes the final determination based on state law, not what your boss wants. Your employer's taxes go into a big pool that pays everyone's benefits.

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But what happens if the trust fund runs out of money? Does that ever happen?

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During major recessions states sometimes have to borrow from the federal government, but Washington's trust fund is generally pretty stable.

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wait so if my company pays unemployment taxes that means they're basically paying for my benefits right? seems weird that they would pay me to not work

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Think of it more like insurance. Your employer pays premiums (taxes) into a system that provides benefits when needed. They're not directly paying you - they're paying into a shared insurance pool.

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ok that makes more sense when you put it that way

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It's actually a really smart system when you think about it. Employers have an incentive to avoid unnecessary layoffs because it keeps their tax rates lower. But they can't just refuse to pay if they do have legitimate layoffs. The state acts as the middleman to keep things fair.

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Except when employers try to claim you quit when you were actually laid off, just to avoid the hit to their experience rating.

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That's when the appeals process comes in. Washington ESD investigates these disputes and makes a determination based on the evidence.

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wait so employers dont pay anything when you file unemployment?? that doesnt sound right

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Employers pay unemployment insurance taxes regularly to Washington ESD, but they don't pay your specific benefits directly. Think of it like car insurance - you pay premiums, but the insurance company pays claims.

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oh ok that makes more sense. so its like a pool of money from all employers

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Washington ESD collects unemployment insurance taxes from employers based on their payroll and claims history. Higher claims = higher tax rates for that employer over time. But you earned those benefits through your work, so don't feel guilty about collecting.

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Wait so if lots of people get laid off from a company, their unemployment tax rate goes up?

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Exactly. It's called an experience rating. Companies with more layoffs pay higher rates to discourage unnecessary terminations.

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That makes sense from a policy perspective but seems harsh for companies going through tough times

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The system is funded entirely by employer contributions - employees don't pay into unemployment insurance in Washington state. Employers pay both state UI taxes and federal FUTA taxes. The state fund pays your weekly benefits while federal funds help with administration costs.

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I had no idea employees don't contribute to UI in Washington! In some states workers pay a small percentage too. Good to know Washington ESD benefits are 100% employer-funded.

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Exactly - Washington is one of the states where only employers contribute. Makes the system simpler for workers since there's no payroll deduction to worry about.

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I had so much trouble getting through to Washington ESD to ask questions like this. Spent hours on hold trying to understand how my claim would affect my old job. Finally found this service called Claimyr at claimyr.com that helped me get connected to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.

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Is that legit? I've been trying to call Washington ESD all week with no luck

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Yeah it worked for me. They basically get you past the busy signals and connect you to a real person at Washington ESD.

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Interesting, might have to check that out if I can't get through today

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I had a similar situation with my old manager trying to make me feel guilty about filing. If you're having trouble getting through to Washington ESD to ask questions about this, I found this service called Claimyr that helps you actually reach a real person at unemployment offices. Check out claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Thanks! I might need that if I have more questions about my claim.

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wait is that some kind of paid service? why would you pay to call unemployment?

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Yeah there's a fee but honestly worth it when you can't get through otherwise. I was calling for weeks before I found them.

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ya employers pay into the unemployment insurance fund through payroll taxes but its not like they write you a check directly lol

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Good to know it's not direct! I was worried they might try to interfere with my claim somehow.

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employers pay quarterly taxes to washington esd based on their experience rating. if they lay people off frequently their rates go up, if they have stable employment their rates are lower. your claim gets charged back to their account which affects future rates

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That makes sense why he seemed annoyed. Does this mean he might try to contest my claim?

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he could try but if you were laid off for lack of work he doesn't have grounds. only if you were fired for misconduct or quit without good cause

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Even if he contests it, Washington ESD will investigate and make the determination. Document everything about your layoff just in case.

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Oh that makes sense! So it's like insurance that they're already paying for. I was worried I'd be taking money directly from them.

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exactly, and you paid into it too through your work. you earned those benefits

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I work in HR and can confirm that employers pay unemployment taxes every quarter. The rate depends on the company's history of layoffs and claims. New businesses pay a standard rate until they build up experience.

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What happens if a company goes out of business? Are their former employees still eligible for benefits?

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Yes, the benefits are paid from the state trust fund, not directly from the employer. Even if the company closes, you can still collect unemployment benefits.

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just to clarify the funding structure - Washington employers pay unemployment insurance taxes quarterly based on their total wages paid and their experience rating. Higher turnover companies pay more, stable companies pay less. The fund is managed by Washington ESD and thats what pays your weekly benefits

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So companies that lay people off more often end up paying higher rates?

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Exactly right. It creates an incentive for employers to maintain stable workforces since frequent layoffs increase their tax rate.

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That seems fair actually. Companies should pay more if they're constantly letting people go.

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Ava Kim

Your employer is being ridiculous! Unemployment insurance is exactly that - INSURANCE. They pay premiums just like any other insurance and claims get paid from the pool. You filing doesn't take money directly from their pocket.

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That's a good way to think about it. Makes total sense when you put it like that.

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Right, and if they didn't want to pay unemployment taxes they shouldn't have hired employees in the first place.

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Been through this whole process twice now. Your employer pays quarterly taxes to Washington ESD based on their total wages paid and their 'experience rating' which goes up if they have more unemployment claims. The money goes into the state unemployment trust fund, and that's what pays your weekly benefits.

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How do you find out what your employer's experience rating is? Is that public information?

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I don't think individual company rates are public, but you can see general information about how the rating system works on the Washington ESD website.

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The funding comes from employer taxes, but trying to get through to Washington ESD to understand the details can be impossible. I spent weeks calling about my claim status. Finally used Claimyr.com to get connected - they have this system that actually gets you through to an agent. There's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Wait, there's actually a way to reach Washington ESD by phone that works? I've been trying for days.

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Yeah, Claimyr handles the calling process for you. Saved me hours of redialing busy signals.

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That might be helpful if I run into issues with my claim. Good to know there are options.

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the whole system is designed so workers don't have to worry about the cost when they legitimately need unemployment. You paid into this through your work just like any other insurance

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I never thought of it as insurance I earned through working. That perspective helps a lot.

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Honestly trying to get through to Washington ESD to ask questions like this used to be impossible. I spent weeks trying to call them about my benefit calculations. Finally found this service called Claimyr that actually got me connected to a real person at claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.

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Really? I've been trying to get through for days about my adjudication. How does that work exactly?

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They basically handle the calling process for you and get you connected to an actual Washington ESD agent. Way better than sitting on hold for hours and getting disconnected.

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THE WHOLE SYSTEM IS MESSED UP!!! Why should employers have to pay when the government is shutting down businesses left and right?

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The system has been around since the 1930s and helps stabilize the economy during downturns

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Still doesn't seem fair to small business owners who are struggling too

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