In March 2020, the state of Washington passed HB2965, which provided funding of $25 million to the state’s Covid-19 unemployment account. This legislation allows employers (who are currently paying Washington unemployment contributions) the ability to request a Covid-19 UI benefits offset from these funds, rather than have the benefits impact their experience rating (possibly creating a higher tax rate in 2021).

The offset available is for unemployment benefits charged from March 1 to June 30, 2020. Eligible employers interested in this opportunity will need to submit their application no later than September 30, 2020.

The application and filing instructions can be found at the state website. Please contact our State & Local Tax experts to navigate the application process.