Washington State Unemployment: What Companies Need to Know

The Washington State (WA) Employment Security Department, or WA State Unemployment Division, is in charge of regulating the Corporate Officer change that took effect back in December 2013.

WA State Unemployment

The old WA unemployment law automatically covered all corporate officers for unemployment benefits unless the corporation asked to be exempted. 

The new law states Washington corporations will no longer be required to pay state unemployment insurance taxes on their corporate officers unless the corporation requests voluntary coverage for all its officers.

It's important that employers understand Washington State unemployment requirements in order to comply with Washington State Payroll Laws.

WA State Corporate Officer Unemployment Requirements

Businesses that are looking for unemployment insurance coverage for their corporate officers must ensure that they cover all of their corporate officers. 

In addition to the update above, corporate officers who are covered for unemployment benefits may now be eligible for benefits under new circumstances, even when some wages used on the unemployment claim are from the corporation. 

Corporations that do not pay state unemployment insurance taxes on corporate officers must pay the full amount of federal unemployment (FUTA) taxes to the Internal Revenue Service.

For more help with WA State unemployment insurance, or other areas of state compliance such as Washington State Minimum Wage, contact us today.