Feb 2, 2022 Washington State Long Term Care Tax on Pause
The Washington State Long Term Care Tax of 0.58% that was poised to start on January 1, 2022 has been paused until July 2023. Governor Inslee signed two bills relating to the tax, also referred to as the WA Cares Tax. Many questions and criticisms lead to the pause. Additional bills were introduced as well.
Previously, workers nearing retirement were not eligible for benefits, but they would be eligible for a pro-rated benefit under the new bill. The bill also allows more people to opt-out, including people who live out of state and work in Washington, military spouses, workers with non-immigrant visas, and certain veterans. Approximately 450,000 Washington residents have already opted out of the WA Cares tax by obtaining their own long-term care insurance through private or employer programs (1).
If employers have already collected premiums, they have 120 days to refund them to their employees. To read additional information on the WA Care Tax visit the website: https://wacaresfund.wa.gov/
If you have any questions, please feel free to schedule a meeting with an advisor.
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