Who pays unemployment tax - employer or employee in Washington ESD system?

That makes sense why I don't see it on my paystub then. So the employer is basically paying into the system for all their employees?

Exactly. Employers pay quarterly taxes to Washington ESD based on their total payroll. The rate varies depending on the employer's history with layoffs and claims.

Wow that's a pretty big range. What determines where an employer falls in that range?

It's based on their 'experience rating' - basically how many former employees have filed successful unemployment claims. More claims = higher tax rate.

Makes sense from a business perspective. Companies that lay people off more often should pay more into the system.

How much does that service cost? I'm always skeptical of these third-party calling services.

I was skeptical too but it actually worked. They don't charge anything upfront - you only pay if they successfully connect you to an agent. Saved me literally hours of frustration.

That's actually pretty cool. I might try that next time I need to reach Washington ESD about something.

Wait, so if I'm a 1099 contractor I can't get unemployment if I lose my contract?

Correct - 1099 contractors typically can't collect regular UI benefits because no employer has been paying unemployment taxes on their behalf.

That seems unfair. Contractors can lose work just like regular employees.

Good point. The whole system infrastructure has to be paid for somehow.

Although sometimes it feels like they could invest more in their phone system given how hard it is to get through!

Those are completely different systems. Social Security and Medicare taxes (FICA) are split between employer and employee. Unemployment insurance is employer-only in Washington.

Ah okay, that makes the distinction clear. Thanks for explaining!

Where can you find those published rates? I'm starting a small business and want to budget for this.

Check the Washington ESD website under the 'Employers' section. They have all the current rates and calculators to help you estimate your quarterly payments.

Exactly! It's insurance that you've essentially paid for through your work, even though it doesn't come directly out of your paycheck.

That's a really important distinction that I think gets lost sometimes in political discussions about unemployment benefits.

Yes, each employer pays unemployment taxes on the wages they pay you, up to the wage base limit. For 2025, that limit is around $62,500 per employer.

Interesting. So if I have two part-time jobs, both employers are contributing to the fund that would pay my benefits if I became unemployed.

Did you try that Claimyr service someone mentioned earlier? I'm curious if it works for employer-related calls too.

I didn't know about it at the time, but I'll definitely keep it in mind for future issues. Getting hung up on after 45 minutes on hold is incredibly frustrating.

Same here. I always assumed it was like Social Security where both employer and employee contribute.

It's one of those things they probably should teach in high school along with other basic financial literacy topics.

That's true from an economic perspective, but it's still important to understand that legally and practically, it's the employer's responsibility, not the employee's.

Right, and when you file for benefits, you're claiming something that was paid for on your behalf, not something you directly contributed to.

How exactly does it work? Do you have to give them your personal information?

You just tell them what you need to discuss with Washington ESD and they handle getting you connected. No need to share sensitive claim details with them.

No problem! It's always good to understand how these systems work, especially since they affect all of us as workers.