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.
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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.