Most WA Employers Will See Tax Relief This Year

Seattle WA

14 March, 2022

6:57 PM

Description

WASHINGTON — Washington's Employment Security Department is recalculating unemployment tax rates for employers across the state, which will reduce the amount owed for most business owners in 2022 and 2023. The tax relief follows the passage of legislation sponsored by Sen. Karen Keiser (D-Des Moines), which received unanimous approval in the state House. Keiser, who successfully moved similar tax cuts through the legislature in 2021, said unemployment premiums spiked with surging demand during the pandemic, impacting businesses large and small. "The layoffs due to COVID-19 hit small businesses especially hard," Keiser said. "This bill will keep unemployment insurance premiums for all employers, and especially for small businesses, from going up as much as they would have." ESD officials said the change would reduce employers' portion of the tax owed in 2022 and 2023, with extra relief in the second year for businesses with 10 or fewer employees. Generally, employers' unemployment tax burdens are sorted into rate tiers, which are calculated based on each company's layoff history and payroll size. Keiser said no state money was needed to cover the cost of the reduction, thanks to strong growth and a favorable forecast for Washington's unemployment insurance trust fund.