One of the less publicized but more troubling bills adopted into law this session was House Bill 1323, which is a follow-up to 2SHB 1087 that passed in 2019. This bill proposed a new tax on all employees in the State of Washington to fund a long-term care (LTC) insurance program called the WA Cares Fund. Effective January 1, 2022, nearly all working Washingtonians will be subject to a .58% payroll tax on all wages.

YOU HAVE THE OPTION

to purchase a private long-term care plan BEFORE November 1, 2021.
Talk to your local insurance agent. If you decide to purchase a private LTC insurance plan,

YOU CAN OPT OUT OF PAYING THE TAX

starting October 1, 2021 — December 31, 2022

HOW DO I OPT OUT? 

Fill out an application attesting to the Employment Security Department (ESD) that you have purchased private long-term care insurance. You will receive a letter from ESD showing that your exemption was approved. Show the ESD letter with their approval to your current and any future employers to ensure you’re permanently exempt from paying the payroll tax.

The WA Cares Fund program may meet the needs of some, while others may find private long-term care insurance to be a better option.

For more information, visit wacaresfund.wa.gov or call my legislative office at (360) 786-7626.