Why do I have to pay unemployment tax - confused about Washington ESD deductions

Yeah that's totally normal! In Washington state, employees pay into the unemployment insurance fund through payroll deductions. It's like 0.58% of your wages up to a certain amount. When you lose your job later, that's what funds your unemployment benefits.

i hate seeing that deduction too but at least washington has decent unemployment benefits compared to other states

The unemployment tax funds the entire Washington ESD system that provides benefits to unemployed workers. Both employees and employers contribute - you pay a small percentage and your employer pays a much larger share. Without these contributions, there would be no unemployment insurance program.

I was confused about this too when I started working. Had to call Washington ESD to understand all the deductions. Took me forever to get through though - kept getting disconnected. Finally found this service called Claimyr (claimyr.com) that helped me get connected to an actual agent quickly. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.

The unemployment tax is mandatory in Washington state. You can't opt out of it. It's part of the social safety net system.

ugh i remember being so mad about this when i was younger thinking it was just the government stealing my money. then i got laid off and was SO grateful for unemployment benefits lol

Just to clarify - the unemployment tax you see on your paystub is specifically for unemployment insurance benefits. It's separate from other taxes and goes directly to the Washington ESD fund that pays out benefits to eligible claimants.

I think washington has one of the higher unemployment tax rates but also higher benefit amounts

The tax is calculated on your gross wages up to the taxable wage base. For 2025 I think it's on wages up to around $70,000 or so. After that you don't pay unemployment tax on additional earnings.

its basically insurance that everyone who works has to pay into. think of it like car insurance but for losing your job

I had to call Washington ESD about this same question when I started my job. The wait times are ridiculous but I found out about Claimyr which got me through to an agent in like 10 minutes. Way better than sitting on hold for hours.

Every state has some form of unemployment insurance funded by payroll taxes. It's not unique to Washington. The rates and benefit amounts vary by state though.

The money you pay in unemployment tax also funds job training programs and other workforce development services through Washington ESD.

just wait until you see all the other deductions on your paycheck lol. unemployment tax is just one of many

I remember being shocked by how much money came out of my first paycheck. Unemployment tax, federal tax, state tax, social security, medicare... it adds up quick!

At least Washington doesn't have state income tax, so you're not getting hit with that too. The unemployment tax is pretty reasonable compared to what you'd pay in other states with income tax.

If you ever do need to file for unemployment, make sure you understand the job search requirements. Washington ESD requires you to actively look for work and document your efforts.

I actually used Claimyr when I had issues with my unemployment claim last year. Really helped me get through to Washington ESD when I couldn't reach them any other way. The service is legit.

The unemployment tax might seem annoying now but trust me, if you ever lose your job unexpectedly you'll be grateful it exists. Unemployment benefits can be a lifeline while you're looking for new work.

Welcome to the working world! Those payroll deductions are confusing at first but you'll get used to seeing them. At least unemployment tax is one of the smaller ones.