New payroll deduction coming for long-term care insurance trust
WA Cares long-term care insurance program premiums will be deducted from paychecks beginning July 1, 2023.
In 2019, the legislature created the state’s Long-Term Services and Support Trust, called Washington Cares, to address a growing need for long term care supports. The program is funded by a payroll deduction of $0.58 per $100 starting July 1, 2023 and will provide benefits to workers who have paid in for ten years or for those have paid into the system in 3 of the last 6 years before needing the benefit. The state benefits will be paid beginning July 1, 2026 to qualifying individuals who reside in Washington when they need to rely on that benefit. There is a lifetime maximum benefit of $36,500 which will increase annually to keep pace with inflation.
Can we bargain over this?
Unfortunately, since it’s a state law directing employers to collect these premiums, we cannot bargain over the collection of premiums.
Can I apply for an exemption now?
Most likely, no. Only workers living outside of WA, spouses/partners of active servicemembers, non-immigrant work visa holders, and disabled veterans qualify for an exemption at this time. More info here.
If you were approved for an exepmtion during the 2021-2022 window, is the your responsibility to provide employers with the notice of approval of exemption. Exemptions will take effect the quarter after the application is approved.