setting up payroll in WA with no ESD number

Providing the best experience with the product is what we aim for, mtiemeye.

The Employment Security Number (ES Number) is the account number you use to file your quarterly unemployment taxes. It also is printed on the top right corner of your annual tax-rate notice and the statement of benefit charges. I know how beneficial it is to your business not to set up the Washington Employment Security Department (ESD) number/identifier on the payroll set-up interview process. However, this option is unavailable in QuickBooks Online (QBO).

With this said, I'd recommend sending this request straight to our product engineers through feedback. Sharing features and options that you would like implemented is how our engineers look for new product updates. Here's how: 

1. Go to the Gear icon at the top.
2. Select Feedback.
3. Enter your comments or product suggestions.
4. Then select Next to submit feedback.

In this case, it would be best to consult your accountant or tax advisor on how to best handle this one in QBO. I've added this article to guide you through accessing some payroll reports in QuickBooks Online. You might want to run a Tax liability report to check your numbers quarterly. To learn about the unemployment insurance tax rate updates in WA, click here. This will provide the details of the changes according to your location.

To ensure the accuracy of your payroll records, we recommend reaching out to our Payroll Support Team. They can help you recalculate the taxes to ensure they are reported correctly. Please make sure to review their Support hours to know when agents are available.

I'm just one reply away if you have follow-up questions about managing your taxes or your account. I’m only a few clicks away from you. Keep safe!

Actually, I don't pay quarterly unemployment taxes, nor do I receive tax rate notices or statements of benefit charges. The reason is that I am a one-person company. For this reason, they will not issue me an ESD number. I have asked for one. I can attach their email reply if you would like to see it. There will be no ESD number for me.

So I'm not trying to avoid setting it up to get an advantage. I'm not setting it up because I don't have a number to put in there. This is an oversight in QB Online, which asks for a number which does not exist. What happens next?

I appreciate your quick response to sort out this matter, @mtiemeye.

Getting this fixed is also essential to me to help you set up your QuickBooks Online (QBO) Payroll.

Since you have me, I will share a workaround to complete your setup and enable you to utilize the program. This way, you can use the available features that will benefit or lessen the workload you will need. 

Based on your statement, I can see that there's no way you can get an Employment Security Number (ES Number) as the state of Washington won't provide one. This could be because some states will give only if the employer has submitted any employee's wages.

In your case, you can add zeros on the field to proceed with the setup. Please refer to the format number, which is: 000000000000

Additionally, I added this article for further reference with pulling up payroll reports: Run payroll reports in QuickBooks Online Payroll.

Moreover, you can utilize the memorize report feature in QBO. This way, you can use your previous customization.

Let me know if you have more concerns about setting up payroll. The Community always has your back. Have a good one!

I will note that Online Payroll does not accept a field full of all zeros for the ESD number. It does accept three leading zeros followed by, for example, my federal tax ID number. 

It also does not accept all zeros for the state tax ID number. This is another field that I'm not sure exists in WA. The previous field asks for my UBI number, which I have and works fine. I am unaware of a separate state tax ID for WA. The field wants an 8-digit number with format 000000-00. I input the first eight digits of my UBI number, and it went ahead and accepted it.

Finally, what does Online Payroll do when it attempts to collect unemployment insurance tax (the minimum rate I can use is 0.2%) and pay it when there's no account with the state? Where does that money go and how can I get it back? 

Thanks for sharing more details, @mtiemeye.

I'll hop in this thread to help you update the State Unemployment Insurance (SUI) rate in QuickBooks Online Payroll.

Once you pay taxes, your payment will be named under your business name and goes directly to your state agency. You will need to apply for it to get an update to our software. 

Furthermore, since you mentioned that you have an available rate, I'll show you how to set this up on your account.

Here’s how to update your SUI rate:

1. Sign in to QuickBooks Online.

2. Go to Settings ⚙, then select Payroll settings.

3. Next to the state you want to update, select the Edit ✎ icon.

4. In the State Unemployment Insurance (SUI) Setup section, select Change or add a new rate.

5. Fill in your new rate and its effective date. 

• If you have already created paychecks with the wrong rate, or need to correct a prior quarter rate, contact us.

6. If you have a surcharge or assessment tax rate, enter it here.

7. Set your new rate and its effective date.

8. Select OK to save your changes.

I'd be adding this page if you need to set up WA worker's compensation: Manage Washington (WA) workers' compensation. You can also set up your classes and rates to calculate the premiums on your employee's paychecks.

Feel free to discover about the unemployment insurance tax rate updates in WA. QuickBooks Online Payroll helps you compute your state taxes based on where you live: Important updates to state tax rates in DC, MA and MN.

I appreciate your time, but please do not hesitate to contact me if you have any further questions about managing your taxes. I'm only few mouse clicks away. Keep yourself safe!

We are having the same problem.  Numerous attempts to speak to QB have not gone well.  

Hello there, @Christi11.

It isn't the experience I'd like you to have. I'm here to help you fix your issue with using QuickBooks Online.

I would appreciate it if you share more information about your concern. What are you trying to do with your account?

If you did the suggested resolutions above for other users' concerns and still have the same issue, I recommend reaching out to our Customer Care team. This way, they can investigate further and help you resolve the issue.

Here's how:

1. Click the Help icon located in the upper right-hand corner.
2. In the Help window, click the Contact Us button at the bottom.
3. Then, enter your concern and click Let's talk.
4. Choose either Start a chat or Call us.

If you have the new QuickBooks Assistant help update, you can follow these steps:

1. In your QuickBooks Online account, go to Help > Assistant.
2. Type Talk to a human and click the Contact a human button.
3. Select Live Chat / Call me back.

You can also get the contact information at this link: Contact QuickBooks products and services Support.

For reference in updating the state account number, please check out this article: Changing a state account number.

You can read this guide when you're ready to use our E-Services function in the future and have everything set up: Payroll taxes and forms can be paid and filed online.

Let me know if you need additional assistance managing your state account number. I'll be right here to help you out some more. Take care!

Ethel - I am having the exact same problem.

We are single employee corporations. We are exempt from contributing to workers comp, unemployment.

WA state will not give us an EDS number, which is required when setting up QB to do payroll taxes. 

Can Quickbooks make the ESD number OPTIONAL for WA state business users? it appears that your product is not compliant with WA state rules.

Julie

mtiemeye - I called ESD and they said they would not give me a number even if I asked. They do not process single-employee corps (I too am an S-corp and the only employee).

Did you make any progress? I have to submit my fed taxes via EFTPS because I can't via Quickbooks. I also cannot submit taxes via Quickbooks. Am considering going to a different software since the functionality I needed is not here. They have also taken functionality away from contractor set-up.

Hi @Ethel_A  @RoseJillB 

Ethel - I am having the exact same problem.

We are single employee corporations. We are exempt from contributing to workers comp, unemployment.

WA state will not give us an EDS number, which is required when setting up QB to do payroll taxes. 

Can Quickbooks make the ESD number OPTIONAL for WA state business users? it appears that your product is not compliant with WA state rules.

Julie

This isn't the experience we want you to have, @jules33.

I recognize how relevant it is to you and your business to make the ESD number as optional for WA state business users. Currently, we need this number in setting up your QuickBooks account. 

At times, we roll out enhancements based on our customer's requests. That being said, I suggest sending a recommendation to our product developers. They'll review this idea and might consider updating it in the future.

Here's how:

1. Go to the Gear located at the top.
2. Under Profile, click Feedback.
3. Enter your recommendation and select Submit.
   
   

You can also utilize this link to check the status and keep you in the loop on our progress of your request: Customer Feedback for QuickBooks Online.

In the meantime, you'll want to use a dummy ESD number to setup payroll, but before doing so, check first with your accountant if it is advisable.

I also encourage you to visit this resource that will guide you in setting up, changing, paying and filing WA workers' compensation: Manage Washington (WA) workers' compensation.

As always, add a comment below if you have any other questions about setting up QuickBooks to do payroll taxes. I'm here to help always. Take care!

Has this issue been addressed?  Is there a way to set up payroll without an ESD number?

Commenting as well because I'm having the same problem.

 I'm having this same problem. Is there a solution from Quickbooks yet? 

I understand you want to know and update this option,@kmayer. I can provide general information about the Employment Security Department in Washington state in QuickBooks Online Payroll.

The Washington Employment Security Department (ESD) administers unemployment benefits, provides job search assistance, and offers various employment-related services. Furthermore, we can set up the state to Washington and enter the Employment Security Department number.

In your case, we can set a sample number for the meantime. Please note that this field will not accept alphanumeric and zeros thus, we'll enter number like 123456789.

1. Sign in to QuickBooks Online.  

2. Go to Settings ⚙, then select Payroll settings.

3. Select the Edit icon Next to the state you want to update.

4. In the State Unemployment Insurance (SUI) Setup section, select Change or Add a new rate.

5. Fill in your new rate and its effective date. 

7. Set your new rate and its effective date.

8. Select OK to save your changes.

I'm adding this page if you need to set up WA worker's compensation: Manage Washington (WA) workers' compensation. You can also set up your classes and rates to calculate the premiums on your employee's paychecks.

I'm more than happy to help you with your payroll-related concerns. Feel free to add them below.

I don't think you understand the problem. In Washington State, a single employee (me) S Corp does not need to file workers comp reports and therefore does not need an ESD number. In fact,  I called the Employment Security Department and they refuse to give me one because I don't need one. I can beg until I'm blue in the face, but that won't change the reality of me not needing and not being able to get an ESD number. This would apply to all single employee S Corps in the State of Washington. I am not alone. Yet, Quickbooks does not provide a setting for me to tell it I don't need or have an ESD number. 

So, in many places throughout Quickbooks, I'm not able to progress through setup or other things I need to do. At one point, someone at quickbooks added a dummy number so I could at least pay myself, but I’m now trying to setup 'automated taxes' in the payroll overview page, and one of the screens again asks for an ESD number. It defaults to the dummy ESD number that Quickbooks Support added, but when I click next I get a red exclamation point and it says 'Enter a 12-character valid ESD Number'.

Please help.

Thanks for getting back with the Community, kmayerkmayer. I appreciate your detailed information.

To obtain an Employment Security (ES) number, I'd recommend continuing to get in touch with the Washington State Employment Security Department who issues them. Let them know your books show that you're required to have one for setting up your automated taxes.

If they continue to advise you don't need one, I'd recommend continuing to request more information about why that is, since QuickBooks displays that you indeed need it for setting up taxes properly.

I've also included a detailed resource about working with taxes which may come in handy moving forward: Set up Washington Cares Fund payroll tax

Please don't hesitate to send a reply if there's any questions. Have a wonderful day!

Thanks. Please reread what i said:

"In Washington State, a single employee (me) S Corp does not need to file workers comp reports and therefore does not need an ESD number. In fact,  I called the Employment Security Department and they refuse to give me one because I don't need one. I can beg until I'm blue in the face, but that won't change the reality of me not needing and not being able to get an ESD number. "

Can this be escalated to someone within at QBO that can fix? 

Thanks for the prompt reply, @kmayerkmayer. I understand the urgency to get this resolved and obtain the ESD number to continue setting up your taxes in QuickBooks.

Since Community is a public space and this requires pulling your account. I'd like to redirect you to our specialist, so this gets addressed securely. This may require confidential information, and they're the ones who can help us check on what we can do about it and help you escalate this matter within QuickBooks.

Here's how to reach them:

1. Sign in to your QuickBooks Online company.
2. Go to Help (?).
3. Select Contact Us.
4. Enter your concern, then select Let's Talk.
5. Choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

For complete details including support hours, see this article: Contact Payroll Support. 

On the other hand, you can continue to request more information about the ESD number to Washington State. They can provide more insights about this and remove the ESD number since you don't need one or provide 12 digit number.

Additionally, once you’ve filed your taxes, you might want to run your payroll reports to ensure your book is well accounted for.

I’m always around whenever you have other questions or queries about your payroll preferences in QBO. Leave a reply and I'll get back to you as soon as I can. Take care and stay safe.

I've tried calling, and i've tried this forum, and no one seems to care. Can you please, please, please forward this to someone that understands the problem and can fix. I've called in 10 times to get this corrected and it has yet to be fixed even though I'm told it will be. I'm given new case numbers, and nothing happens. Let me also say once again the problem is not that i don't have an ESD number, the problem is that Quickbooks incorrectly thinks i need one. I called the Washington State Employment Security department minutes ago and was again told I can't get one because i don't need one. 

I am in the same boat however I just ignore Quickbooks.  Their customer service is horrible and they obviously don't have any experts or else this would have been resolve months ago.  They keep telling you to call the State, but the State clearly states you don't need this so I am not sure where the discount between QB product and State Regulations is.  For now, I don't file anything with the state and just ignore all the messages about missing information.

This problem persists in 2023.   Nothing has been done.  Is it correct to state that I can still run online payroll w/o an ESD #?

Miserable Tech Support.  No communication.  No response to an open ticket.