Washington Long-Term Care Tax Information

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Beginning January 2022, a .58% payroll tax will be collected from all state employees to fund the Long-Term Care Trust Fund.

WA Cares Fund Overview

The WA Cares Fund is a mandatory long-term care insurance benefit established by Washington state law. Starting January 2025, benefits can be used to purchase long-term care services. The plan is administered through the Employment Security Department (ESD).

Mandatory employee payroll deductions begin January 2022.

The WA Cares Fund will be supported by a premium paid by employees at 58 cents per $100 of gross wages. For example, if a 12-month employee earns $50,000 annually, the total annual premium is $290 or $12.08 per paycheck. Employees will see the first payroll deduction on the Jan. 10, 2022 paycheck.

Limited exemption opportunity

State law allows you to apply for an exemption to the program between Oct. 1, 2021-Dec. 31, 2022. The exemption is only available if you have purchased long-term care insurance by Nov. 1, 2021.

Applications for an exemption must be submitted to the Employment Security Department (ESD). An employee exempted from the Washington Cares Fund premium by ESD is permanently ineligible from receiving benefits under the program and cannot rejoin. The exemption application will be posted on the ESD website when it is available.

Employees considering purchasing long-term care insurance can find a list of companies approved to sell in Washington state at Washington State Office of the Insurance Commissioner’s Long-Term Care Insurance.

If approved for a premium exemption by ESD, employees are required to notify Payroll with a copy of the exemption letter to ensure no payroll deduction is taken. ESD does not notify EWU of the premium exemption. It is your responsibility to notify EWU of any exemption. If notification is not received, deductions will be taken automatically.

More information is available at WA Cares Fund.

Please Note: The information regarding this plan is provided as a courtesy by EWU, as this tax is not administered by EWU. The plan is administered through the Employment Security Department (ESD).

For More Information: http://www.wacaresfund.wa.gov/

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