As we previously shared, the Washington State Legislature passed the Long-Term Services and Supports (LTSS) Trust Act in 2019, mandating a payroll tax for ALL Washington-based employees in order to fund long-term care benefits.
Payroll tax collection starts January 2022
Starting in January 2022, employers must collect a 0.58% payroll tax from all employees (with no income limit)—unless the employee applies and is approved for an exemption.
Up to $36,500 in benefits available
Employees must purchase private insurance to avoid the tax
To qualify for the exemption, an employee must purchase a private long-term care insurance plan by Nov. 1, 2021 and apply for an exemption between Oct. 1, 2021 and Dec. 31, 2022.
The tax is paid entirely by the employee, although an employer has the option to pay it for employees.
The WA Cares team will be hosting webinars in the fall to help employers learn how to use the state’s existing Paid Leave reporting process to report once for both the Paid Leave and the Long-Term Care programs.