In 2019 the state enacted a long-term care (LTC) insurance benefit for all eligible Washingtonians, funded by worker contributions into a Trust Fund, now known as the WA Cares Fund. Under this law, individuals will have access to a lifetime long-term care benefit of $36,500 that will be adjusted annually for inflation. Owners of private long-term care insurance may "opt-out" of the WA Cares Fund permanently by applying for an exemption. Once an employee is exempt, they are permanently ineligible for benefits from the WA Cares Fund.
Special note: Union represented employees from IAM 751 and IUOE Welders will not be subject to the WA Cares Fund .58% payroll tax, which takes effect Jan. 1, 2022, until after the collective bargaining agreement has expired. After the agreement has expired, the .58% payroll tax is applicable. However, in order to opt-out of the payroll tax in the future, you must have long-term care coverage in place prior to Nov. 1, 2021. The chart below illustrates how the WA Cares Fund payroll tax will impact various salary ranges.
WA Cares Fund Tax Examples |
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Annual Salary | Estimated Monthly Payroll Contribution |
Calculate your estimated contribution using the following: |
$50,000 |
$24.17 |
|
$100,000 |
$48.33 |
|
$150,000 |
$72.50 |
|
$200,000 |
$96.67 |
|
$300,000 |
$145.00 |
|
$400,000 |
$193.33 |
Site references include:
https://www.dshs.wa.gov/altsa/stakeholders/long-term-services-and-supports-ltss.