December 2024 | Issue 56
Important snail mail headed your way: Watch for your annual unemployment tax rate notice
Each December, we send employers an annual unemployment tax rate notice. We send the printed notice via the U.S. Postal Service. Go to the Employment Security Department website to learn more about how we determine tax rates.
Please remember to update your unemployment tax filing software. Or provide a copy of your tax rate notice to your bookkeeper, CPA or third-party representative so your business uses the correct rate for filing 2025 quarterly reports.
Paid Family & Medical Leave premium rates change starting Jan. 1, 2025
Premiums, collected from employees and employers through quarterly reporting, fund the Paid Leave program. By law, the Employment Security Department (ESD) recalculates the Paid Leave premium rate annually in October. We adjust the premium rate based on premiums contributed and benefits paid during the previous year.
Starting Jan. 1, 2025:
- The premium rate will increase to 0.92%.
- Employers will pay 28.48% of the total premium and employees will pay 71.52%.
- Businesses classified by ESD as having fewer than 50 employees for the 2025 calendar year are not required to pay the employer portion of the premium. However, you must still collect the employee premium or pay employees’ premiums on their behalf.
Next steps for employers
- Notify your employees the new rate applies to wages paid on or after Jan. 1, 2025. We have updated the Employer Toolkit and will update more, including the mandatory poster and paystub insert, by the end of the year. These resources are available on the employer roles and responsibilities page on the Paid Leave website.
- On Jan. 1, 2025, start collecting the new premium rate each pay period from your employees’ total gross wages, not including tips. Once an employee meets the Social Security cap, you need to stop collecting premiums but continue to report their wages. The Social Security cap for the 2025 calendar year will increase to $176,100.
- First quarter premiums using the new rate are due by the end of April 2025. Remember: You cannot retroactively withhold premiums from employees.
Learn more on our website
By the end of the year, visit the updates page on the Paid Leave website to find updated resources for you and your employees.
You’re invited: Sign up to use the simplified EAMS for 4Q 2024 unemployment tax reports
We invite you to be an early adopter to the updated, simplified and more accessible Employer Account Management Services (EAMS) system. Thanks to those who have already signed up!
If you’re interested, now is the time to let us know. Please send an email to esdgptaxreportingfeedback@esd.wa.gov by Dec. 10.
Primarily, employers use EAMS to pay unemployment taxes and submit quarterly tax and wage reports.
The redesigned EAMS features easier navigation and an updated look. If you sign up to be an early adopter, you can:
- Begin using the new EAMS to file your 4Q 2024 tax reports starting in mid-December.
- Give us feedback that will influence our final product.
- Get prompt help if you encounter any problems. Just send an email to esdgptaxreportingfeedback@esd.wa.gov.
- Have the option of defaulting to the existing EAMS if you need more time to adjust to the changes.
We will notify all employers before we completely convert to the redesigned EAMS.
Spell it out! Let your employees know who is paying their wages
Please ensure that your employees know both your legal business name and your Doing Business As (DBA) name, if you have one. This is important year-round, but it’s particularly important now, when demand for unemployment benefits spikes.
You likely never think about it, but a common problem for workers applying for unemployment benefits is not knowing the full legal name of your business. Some don’t realize that a common brand name or DBA name you might use is not the name we have in our system. We have your legal name — the name of the organization tracking hours and paying wages.
When workers enter the DBA name on their unemployment application, we must contact the claimant to clarify. That can cause delays in processing unemployment claims and can result in us paying incorrect benefits.
Please tell your employees both your legal business name and your DBA name!
Watch a recording of recent Career Connect Washington webinar
If you missed the recent webinar about how industry associations are developing innovative hiring strategies, you can now watch the recording.
The Career Connect Washington (CCW) team hosted this insightful virtual event featuring two of Washington’s leading industry associations shaping the future workforce with career connected learning: the Washington Bankers Association (WBA) and the AGC Education Foundation. A Washington State Labor Council representative also shared valuable information about registered apprenticeship.
In the recording, you'll learn:
- How industry organizations like WBA and AGC Education Foundation are using work-based learning to fill high-demand jobs.
- Why the decades-old, registered apprenticeship model is such a successful labor/employer collaboration.
- Practical strategies for creating diverse, sustainable talent pools.
Watch the recording to explore innovative workforce solutions!
The CCW is a statewide initiative that creates talent solutions for employers and work-based learning for students. It brings together business, labor, education and community members to meet Washington's workforce needs.
Workforce Board collects worker input on job quality
The Washington Workforce Board has launched a Job Quality Survey to gather input from job seekers and workers across all industries. The survey focuses on what matters most to Washingtonians in their jobs — pay, work/life balance, career growth, security and more. Please encourage your workers to take the survey!
This information will help us develop a job quality framework, designed to guide workforce development professionals, state agencies, policymakers and employers in creating more quality jobs across the state.
By collecting data directly from workers, the Workforce Board aims to identify key areas for improvement, such as wages, benefits and career advancement opportunities. The Board will share results with employers and other partners.
This collaborative effort aims to build a more resilient and inclusive labor market that benefits both workers and employers. Responses are confidential, and the survey is open through Feb. 14, 2025.
Email Paulette Beadling with questions.
Check out our new website!
In November, the Employment Security Department launched a major website refresh for esd.wa.gov. Website visitors have welcomed the improvements.
Please check out hire new employees and employer requirements sections to find information tailored to employers.
We would welcome your feedback. Simply leave a comment at the bottom of any page.
Share and subscribe
This monthly “Employer Newsletter” contains information important to Washington employers. Please stay on our mailing list!
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You also can share this email with others who might be interested.
Find links to past issues on the Employment Security Department website.
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