Who pays for unemployment benefits in Washington state?

Washington unemployment benefits are funded through a combination of employer taxes and employee payroll deductions. Employers pay State Unemployment Tax Act (SUTA) taxes based on their payroll and experience rating. You also contribute through small payroll deductions while you're working. It's an insurance system that you've been paying into.

Oh so I was actually paying into this system while I was working? I never really noticed those deductions on my paystub.

Yes, Washington is one of the few states where employees contribute. It shows up as a small deduction labeled something like 'WA UI' or similar on your paystub.

your employer doesn't directly pay for your specific claim but their unemployment tax rate can go up if they have lots of former employees filing claims. thats why some companies fight legitimate claims unfortunately

That makes sense why my old boss seemed annoyed when I filed. I thought he was just being petty but maybe it affects their rates?

Exactly right. Companies with higher claim rates pay higher SUTA tax rates. It's called an 'experience rating' system designed to incentivize good employment practices.

I was confused about this too when I first filed. The Washington ESD website has some info about funding but it's pretty buried. What I learned is that it's basically an insurance fund that everyone pays into while working, then you can draw from it when you need it. Your individual benefits don't come directly from your former employer's pocket.

This is why I always tell people not to feel guilty about filing for unemployment. You literally paid for this insurance while you were working!

That definitely makes me feel better about using the benefits. I was worried I was somehow costing my old company money directly.

Been trying to get clarification on my claim status for weeks and can't get through to anyone at Washington ESD. The phone system is impossible. Anyone have tips for actually reaching a human there?

I had the same problem until I found Claimyr (claimyr.com). They help you get through to Washington ESD agents by phone. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling and getting hung up on.

Interesting, I'll check that out. Getting through to ESD has been my biggest frustration with this whole process.

I used Claimyr too when my claim was stuck in adjudication. Much easier than the endless busy signals and dropped calls.

To answer your original question more specifically: Washington unemployment benefits are funded through the Unemployment Insurance Trust Fund. This fund receives money from: 1) Employer SUTA taxes (varies by company based on their claim experience), 2) Employee payroll premiums (small amount deducted from your paycheck), and 3) Federal administrative grants. Your weekly benefit amount is calculated based on your earnings history, not on how much you personally contributed.

This is really helpful breakdown. So even though I paid into it, my benefits aren't limited to what I contributed?

Correct. It's insurance, not a savings account. Your benefit amount is based on your wage history during your base period, regardless of how much you contributed in premiums.

Wait so someone who made more money gets higher benefits even if they paid the same amount in premiums as someone who made less?

Yes, that's how unemployment insurance works. Higher earners get higher weekly benefit amounts, up to the state maximum. The premiums are a percentage of wages, so higher earners also pay more in premiums.

I always wondered about this too! My mom told me that unemployment comes from employer taxes but I wasn't sure if that was accurate for Washington state specifically.

Your mom was mostly right. Washington is a bit different because employees also contribute through payroll deductions, but the majority does come from employer taxes.

Does anyone know if the funding source affects how long you can collect benefits? I'm on week 15 and wondering if there's a limit based on how much money is in the fund.

Your individual benefit duration isn't affected by the trust fund balance. Regular UI benefits in Washington are available for up to 26 weeks, based on your individual work history and the reason for your job separation.

Good to know, thanks! I was worried the fund might run out or something.

The fund can affect things during economic downturns but for regular claims like yours, you're entitled to your full 26 weeks if you remain eligible.

this whole system is so confusing. why cant they just make it simple and tell you upfront where the money comes from when you file?

I agree the Washington ESD website could be clearer about the funding sources. Most people just want to know they're not directly taking money from their former employer.

Exactly! That was my main concern. I didn't want to create problems for my old coworkers or anything.

For what it's worth, employers do have some influence on claims through the protest process. If they think your claim is invalid, they can challenge it with Washington ESD. But that doesn't change who's paying for the benefits.

My employer didn't protest my claim, thankfully. I was laid off due to budget cuts so it was pretty straightforward.

Lucky you. My former employer protested mine even though I was clearly laid off. Took forever to resolve.

That's frustrating. If you need help reaching Washington ESD about protest issues, Claimyr really does work. I used it when my employer protested and I needed to provide additional documentation.

I think a lot of people don't realize they've been paying unemployment insurance premiums their whole working career. It's one of those deductions that's so small you don't notice it.

Yeah I looked back at old paystubs and found the WA UI deduction. It was like $15-20 per month for me.

That's about what mine was too. Not much individually but adds up across all workers I guess.

One thing to remember is that Washington's unemployment system is entirely state-funded. No federal money goes into regular UI benefits here, unlike some other programs.

That's interesting. So our benefits are totally separate from federal unemployment programs?

For regular UI benefits, yes. Federal extended benefits or special programs like pandemic assistance were different, but those are over now.

Thanks everyone for explaining this! I feel much better about collecting benefits knowing I actually paid into the system. I was starting to feel guilty about it.

Don't feel guilty at all! This is exactly what unemployment insurance is for. You paid your premiums, now you're using the benefit when you need it.

Same here. This thread really helped me understand how it all works. Thanks everyone!

Does the employer tax rate thing mean that companies try to avoid layoffs to keep their rates low?

In theory, yes. The experience rating system is designed to encourage stable employment. Companies with fewer layoffs and firings pay lower SUTA tax rates.

My company definitely considers the unemployment tax impact when making layoff decisions. It's one factor among many though.

Just want to add that if you're having trouble reaching Washington ESD for any reason, I second the recommendation for Claimyr. Used it last month when I needed to speak with someone about my job search requirements and it actually worked.

Good to hear another success story. The regular ESD phone system is brutal.

I'll definitely keep Claimyr in mind if I run into issues with my ongoing claim. The phone system does seem pretty overwhelmed.

Bottom line: you earned these benefits through your work history and premium contributions. Don't let anyone make you feel bad about using unemployment insurance when you need it!

Appreciate that reminder. This whole thread has been really educational and reassuring.

Absolutely agree. Too many people feel ashamed about unemployment when it's literally insurance they paid for.