With the start date of the Washington payroll tax to fund long-term care benefits for workers looming, state lawmakers are considering changes to the law even while lawsuits have been filed to modify or undo it.
Most companies with Washington workers have been preparing to comply with the 2019 Washington State Long-Term Services and Supports Trust Act. The Act, a first-of-its-kind law, provides Washington workers with long-term care benefits (called the Washington Cares Fund) and is funded by a payroll tax (beginning January 1, 2022) on Washington workers.
Background
The Act imposes a payroll tax on Washington workers of $0.58 for every $100 (0.58 percent) of their gross wages. Employers are required to withhold the tax and contribute the funds to a trust to fund long-term care benefits.
Eligible Washington residents who require long-term care will be eligible for up to $100 per day ($36,500 maximum lifetime benefit) to pay for certain items. To be eligible for the benefit, Washington workers must pay into the trust for 10 years (with no more than a five-year interruption) or for three of the last six years before they apply for benefits.
Workers who secured qualifying long-term care coverage, through an individual policy or a group policy before November 1, 2021, can apply for an exemption. The deadline to apply for an exemption is December 31, 2022. If approved, the exemption would be effective beginning the quarter after it is approved and submitted to the employer....
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https://www.natlawreview.com/article/future-washington-s-long-term-care-tax-f...