Washington state’s Employment Security Department has issued 2018 unemployment tax rate notices to employers, with about 81 percent of employers either staying in the same rate class or moving into a lower one.
Specifically, some 25 percent of Washington employers will have a lower tax rate in 2018, while 56 percent will remain the same. Nineteen percent will move to a higher rate class.
Tax rates in all 40 rate classes remained the same as in 2017, ranging from 0.10 to 5.7 percent (not counting delinquency taxes). Employers will pay unemployment taxes on the first $47,300 of each employee’s earnings in 2018. For an employee earning $47,300 or more, the total tax for the year will range from $61 (employers in rate class 1) to $2,706 (rate class 40).
The average tax rate will decrease from an estimated 1.21 percent in 2017 to an estimated 1.10 percent in 2018. The average total tax paid per employee will decline by $15 to $215 per year.
Unemployment tax collections are estimated to decrease from $1.06 billion in 2017 to about $952 million in 2018.
All the new information is available on the ESD’s website at https://www.esd.wa.gov/employer-taxes/determining-your-tax-rates.