Skip to content

How High are Your 2021 Unemployment Taxes?

How High are Your 2021 Unemployment Taxes?

January 4, 2021 Last Edit: March 4, 2025

How High are Your 2021 Unemployment Taxes?

Washington’s Employment Security Department has sent its unemployment insurance (UI) tax rate notices for 2021. Your feedback could help NFIB rollback this massive tax hike.

We have seen estimates that businesses with no layoffs or terminations during the pandemic could see unemployment insurance tax rates jump from about $44 per employee last year to $230 this year – a more than 500% increase. Tax rates for employers without previous UI claims that were forced to lay off or terminate workers during the COVID closures could have their taxes go from $44 to more than $1,000 per employee.

We need your help to determine whether these estimates are accurate, and how they could impact your ability to retain, re-hire, or add workers during 2021.

Members are already reporting skyrocketing rate increases.

  • A business with two, part-time employees hired midyear will see its rates increase more than 200%.
  • An employer who used a PPP loan to avoid layoffs during the pandemic will face a 400% unemployment tax increase.
  • Another reported their UI taxes increasing 500%, but no workforce details were provided.

A short survey on unemployment insurance rates is being emailed to members. If you haven’t received it, but would like to help, please click here for the survey.

 

 

 

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

Related
July 24, 2026
WATCH: What Happened for Small Businesses During the 2026 Arizona Legislative Session?
Learn what happened in Phoenix during the 2026 legislative session and how it affects your small business.
Read More
In Front of the Massachusetts State House in Boston
Related
July 23, 2026
 An Economic Development Bill Should Help Massachusetts Small Businesses, Not Hurt Them
How does adding new hurdles to a law that refunds taxpayers more of their hard-earned money make Massachusetts more affordable or competitive?
Read More
Open office scene with two workers at desks and large computer monitors, a man stands by a kitchen railing in the background.
Related
July 15, 2026
State Policies Impacting Small Businesses
States considered small business measures during the 2026 legislative sessions, including taxes, minimum wage, extreme heat standards, IRC conformity, and tort…
Read More
Related
July 15, 2026
Small Business PAC Announces Primary Election Endorsements
NFIB backing 3 candidates for Supreme Court, 7 for state Senate, and 40 for House
Read More

© 2001 - 2026 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility