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

Your friend is partially right - employers do pay unemployment taxes to fund the system. But it's not a direct payment from your specific employer when you file a claim. Washington ESD collects these taxes from all employers throughout the year and uses that money to pay benefits to eligible claimants.

dont worry about your employer - they knew this was part of the deal when they hired you. just file your claim and get what you deserve

The funding comes from State Unemployment Tax Act (SUTA) contributions that employers pay quarterly. It's calculated based on their payroll and their experience rating - companies with more layoffs pay higher rates. There's also a small Federal Unemployment Tax Act (FUTA) component but that's mainly for administrative costs.

I was in the same position last year and felt terrible about filing. Turns out I had been calling Washington ESD for weeks trying to get through to ask about this exact thing. Ended up using claimyr.com to actually reach an agent who explained the whole system to me. Check out their demo video at https://youtu.be/7DieNd3C7zQ - it really helped me understand how to navigate the system.

washington state has one of the better unemployment systems in the country. your employer isnt paying out of pocket when you file - its already been paid into the state fund

Just to clarify - employees don't pay into unemployment insurance in Washington. That's different from some other states where workers contribute a small amount from their paychecks. Here it's 100% employer-funded through those quarterly tax payments.

I'm dealing with this right now too and it's SO confusing! I keep reading about trust funds and federal extensions and I don't understand any of it. Why can't they just explain this stuff in simple terms?

the system is designed so you dont have to worry about this stuff. just file your weekly claims and focus on finding work

My dad owns a small business and he explained it to me like this - every quarter he pays unemployment taxes based on how many employees he has and what his payroll is. That money goes into a big pot that pays everyone's benefits. He doesn't get a bill when someone files a claim.

I work in HR and deal with this stuff all the time. The employer tax rate can range from like 0.2% to over 5% of payroll depending on the company's history. But once that money is paid to Washington ESD, individual claims don't directly impact the employer's cash flow.

THANK YOU for asking this! I've been wondering the same thing. I got laid off last month and felt so guilty about filing that I waited two weeks. Wish I had known it was already funded by employer taxes.

Just want to add - if you're having trouble reaching Washington ESD to ask questions like this, that Claimyr service I mentioned earlier really does help. I used it twice when I had questions about my claim status and it saved me hours of trying to get through on the phone.

the unemployment system is basically insurance for workers. employers pay the premiums, workers get the benefits when they need them. its that simple

One more thing to keep in mind - there are both state and federal components to unemployment funding. The state portion (which is the bulk of your benefits) comes from those employer taxes I mentioned. The federal portion mainly covers administrative costs and extended benefits during economic downturns.

I've been collecting unemployment for 8 weeks now and I still didn't really understand how it was funded until reading this thread. Makes me feel way less guilty about needing the help.

For what it's worth, I've been an employer in Washington for 15 years and I've never minded paying unemployment taxes. It's part of the cost of doing business and it helps people get back on their feet. Don't feel bad about using benefits you've earned!

wait so if I file for unemployment it doesnt hurt my old employer at all? like they dont get a bill or anything?

The way I understand it, employers basically pre-pay for unemployment benefits through their quarterly tax payments. So when you file a claim, the money was already set aside for that purpose. It's not like they're getting an unexpected expense.

Update on the Claimyr thing - I used it again last week to check on a question about my weekly claim and got through to Washington ESD in like 10 minutes. Definitely recommend if you need to actually talk to someone there instead of just guessing about how things work.

This has been really helpful! I'm in the same boat - just got laid off and was hesitant to file because I didn't understand the funding. Sounds like I should just go ahead and submit my application.