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UNEMPLOYMENT INSURANCE All Washington State employers are required to contribute to the state’s unemployment insurance account. In 1985, Washington State adopted an experience rating system that replaced an older flat-rate system under which all businesses paid the same rate. New employers enrolling in the state’s unemployment insurance program are assigned the average experience rating for their industry. For 2003, premiums varied from .57% to 5.40% of the first $29,700 paid to each employee. INDUSTRIAL INSURANCE Employers are categorized by the Department of Labor and Industries into risk classes according to the degree of hazard involved in the job. Each year new industrial insurance rates are established for the various risk categories based upon experience. Industrial insurance coverage may be provided in two ways:
2) self-insurance, whereby the employer sets up his or her own industrial insurance and safety program. Employers who meet specific requirements may qualify for self-insurance coverage. Self-insurance coverage requires proof of financial responsibility and the posting of a bond with the State Department of Labor and Industry. The minimum bond is $250,000 and the company must have net assets of at least $3.5 million and a net worth of at least $1 million. While the employer can administer and pay claims out of his or her own account, the claims are monitored by the state. For specific questions on industrial insurance, contact the Washington State Department of Labor and Industries at: 1-800-547-8367. |