Washington state’s Employment Security Department (ESD) announced the new premium increases for next year.
As of Jan. 1, 2025, the premium rate will be 0.92%, up from 0.74% in 2024.
Employers will contribute 28.48% of the total premium, while employees will pay 71.52%.
Businesses classified by the ESD as having fewer than 50 employees for the 2025 calendar year are not required to pay the employer portion of the premium. However, employers must still collect the employee premium or pay employees’ premiums on their behalf.
This new rate applies to wages paid starting Jan. 1, 2025 and you should start collecting the new premium rate each pay period from your employees’ total gross wages, not including tips. • First quarter premiums using the new rate are due by the end of April 2025. Remember: You cannot retroactively withhold premiums from employees.
Under state law, ESD adjusts the premium rate every year based on premiums contributed and benefits paid the previous year.
Learn more about employer roles and responsibilities here.
