washington state long-term care payroll tax opt out

Lawmakers also approved a second bill to allow certain individuals who wouldnt benefit from the program to opt out of paying the premium. The legislation provided that individuals could opt out by purchasing private long-term care insurance before November 1 2021 and applying for an exemption by the end of 2021.

The Washington State Long Term Care Trust Act Opt Out Is Now Available Online Parker Smith Feek Business Insurance Employee Benefits Surety

Following widespread criticisms and voter pushback the Washington state House on Wednesday voted to delay the collection of a new payroll tax to fund a state-run long-term care insurance program called WA Cares.

. Workers will begin contributing to the fund in July 2023. Any employee who attests that they have comparable long-term care insurance purchased before November 1 2021 may apply to ESD for an exemption from the premium assessment. The employee must provide proof of their ESD exemption to their employer before the employer can waive.

Individuals who have private long-term care insurance may opt-out. Under an update to the law passed by the Legislature last year people who wanted to opt out of the state-managed program had to have a private long-term care insurance plan in place before Nov. Workers who live out of state and work in Washington military spouses workers on non-immigrant visas and certain veterans with disabilities will be able to opt out of the program if they choose.

Employers will refund any premiums collected in 2022 so far. State Democratic lawmakers have filed bills to delay the payroll tax that funds WA Cares until July 2023 and allow more people to opt-out.

Washington Long Term Care Tax How To Opt Out To Avoid Taxes