Schools should remind employees that this deduction will be affecting their paychecks after this June. For those with a private long-term care plan, the exemption application window to be excluded from the Cares Fund Payroll Tax closed on 12/31/2022.
The 2019 Legislature passed House Bill 1087, creating the WA Cares Fund, a state-operated long-term care insurance program funded through a payroll tax. That new tax and the program take effect July 1.
Washington workers, including part-time and temporary workers, will begin to pay $0.58 per $100 of their earnings for the program. The program will provide a lifetime maximum benefit of $36,500 for long-term care costs for those eligible.
Beginning January 1, 2023, Washington workers became eligible for exemptions from WA Cares if any of the following apply to them:
- Live outside of Washington.
- Are the spouse or registered domestic partner of an active-duty service member of the United States armed forces.
- Have a non-immigrant work visa.
- Are a veteran with a 70% service-connected disability rating or higher.