Many Washington employers to pay lower unemployment tax rates in 2014

Posted on December 10, 2013 

Here's a news release from the state Employment Security Department on estimates about next year's unemployment rates for employers:

OLYMPIA – More than 80 percent of Washington employers will have lower or stable unemployment tax rates in 2014 compared to 2013, according to the state’s Employment Security Department.

Of the roughly 170,000 taxable employers, 29 percent will move into lower rate classes and 53 percent will remain in the same rate class as 2013. Another 18 percent will enter a higher rate class due to their layoff history over the past four years.

By comparison, in 2013, 14 percent of employers moved into lower rate classes, 61 percent stayed the same and 25 percent paid higher rates.

“The tide is turning, and we’re seeing a larger number of companies moving back down the rate ladder,” said Employment Security Commissioner Dale Peinecke. “That’s a very positive sign.”

There are 40 rate classes altogether, ranging from 0.14 percent to 5.82 percent for most employers. The total tax rate for each rate class will remain the same as in 2013.

Unemployment taxes will be assessed on the first $41,300 of each employee’s earnings in 2014. These taxes are paid entirely by employers; workers do not pay into the unemployment trust fund.

The average tax paid for each employee will decrease by $6, to $467 for the year. Each employer’s actual tax bill depends on its total payroll and rate class.

In 2013, Washington’s average unemployment tax rate ranked 26th-highest in the nation, down from 4th-highest in 2008.

Unemployment tax rates are established in state law. The Employment Security Department does not set the rates.

Bellingham Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service