The Employment Security Department has issued 2019 tax rate notices to employers and updated its website with all the new information.
Tax rates in all 40 rate classes remained the same as in 2018, ranging from 0.10 to 5.7 percent (not counting delinquency taxes). About 83 percent of employers will move into a lower rate class or stay the same in 2019.
- 24 percent of Washington employers will have a lower tax rate in 2019, 59 percent will remain the same, and 17 percent will move to a higher rate class.
- The average tax rate will decrease from an estimated 1.11 percent in 2018 to an estimated 1.03 percent in 2019. The average total tax paid per employee will decline by $17 to $199 per year.
- About 29 percent of all taxable employers are in rate class 1, taxed at 0.10 percent. Ninety percent of employers in rate class 1 have five or fewer employees.
- The experience rated portion of the 2019 unemployment tax (paid by rate classes 2 and higher) will be based on benefit payouts from July 2014 through June 2018.
- Unemployment tax collections are estimated to decrease from $1.03 billion in 2018 to about $906 million in 2019.
Employers will pay unemployment taxes on the first $49,800 of each employee’s earnings in 2019. For an employee earning $49,800 or more, the total tax for the year will range from $64 (employers in rate class 1) to $2,849 (rate class 40).