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New Long Term Care Program

Posted by Admin Posted on Oct 11 2021

New Long Term Care Program – the State of WA will become the first state in the nation to implement a publicly managed long-term care plan, effective in 2022.  The program otherwise known as the “Washington Cares Fund” is based on an employee assessed payroll tax, at a rate of .58% of wages paid.  There are exemptions from the upcoming payroll tax, including the “self-employed”, Federal employees and recognized tribal members, as well as individuals who currently have or plan on obtaining a qualifying privately issued long term care plan, by no later than 10/31/21. While this deadline is critical for those who intend to purchase a privately issued plan, thus opting out of the public plan, the employee must also submit an exemption application to the Employment Security Department to request a life-time exemption from the program.  It’s critical to remember that signing up for an eligible long term care plan, by 10/31/21, and then applying for exemption out of the public plan by 12/31/22 is up to employees, whereas collecting the new payroll tax and remitting it to the State of WA is required of all employers. Please contact us if you have any questions, either as an employee or an employer relative to the implementation this new program. Mike & Staff