The Washington Employment Security Department will recalculate employer Unemployment Insurance tax rates for 2022 in response to Senate Bill 5873. The bill, sponsored by Sen. Karen Keiser, D-Des Moines, and signed into law on March 11, reduces social tax rates for employers in 2022 and 2023. It also reduces the 2023 social tax rates for employers who report 10 or fewer employees for fourth quarter 2021.

AWB supported this bill as part of ongoing work to provide relief to employers, who bear the cost of replenishing the Unemployment Insurance Trust Fund after it was drained to support families and the economy during the pandemic.

“Recognizing the continued need for relief from UI rate increases, the Legislature has reduced the socialization tax that affects everyone’s rates,” said AWB Government Affairs Director Bob Battles. “We’ve all suffered and as we come out the other end of this pandemic we continue to need assistance and help employers grow and recover. This is going to be a good step toward that.”

Most employers will see a reduction in their tax rates in 2022 and 2023.
 

• For 2022, most employers will see a reduction in their social cost factor rate from 0.75% to 0.5%. An employer’s social tax rate could vary based on the rate class.
• For 2023, the flat social cost factor rate will cap at 0.7% rather than 0.8%.

The social cost factor rate is the baseline social tax rate for all employers. This rate will go up or down depending on an employer’s rate class. Contact AWB’s Bob Battles to learn more and get involved.