The Washington Employment Security Department’s (ESD) Leave and Care Division has adopted rules to implement revisions to the Washington Long-Term Services and Supports Trust Program (also known as “WA Cares”). The new rules will become effective October 29, 2022.

WA Cares imposes a payroll tax on employees to pay for state-provided long-term care benefits. Employers are not required to pay any portion of the tax. Certain employees are either permanently or conditionally exempt from the long-term care tax. In response to an outcry from Washington companies and workers, the governor postponed implementation of the program until July 1, 2023, to give the legislature time to address some of its obvious shortcomings. The legislature passed Substitute House Bill 1732 and Engrossed Substitute House Bill 1733 to address some of these issues and the bills were signed into law by the governor on January 27, 2022.

The new rules include the following key aspects:

• Exemption for Disabled Veterans. The rules address the exemption for U.S. military veterans who have a service-connected disability rating of at least 70 percent. The ESD will begin accepting applications from qualifying disabled veterans on January 1, 2023.

• New Deadline for “Covered” Employees to Apply for Exemption. WA Cares exempts employees who purchased other long-term care insurance before November 1, 2021. The new rules reflect the extended deadline (December 31, 2022) to apply for a permanent exemption.

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