As a reminder, after an 18-month delay, WA Cares Fund premium collections from employee wages are set to begin on July 1, 2023. The WA Cares Fund is the state's new long-term care (LTC) program that will be funded through a payroll tax on employees. The premium amount for 2023 is 0.58% of gross wages with no maximum limit.
Employers do not contribute to the program but are responsible for reporting employee wages and hours and paying the premiums to the Employment Security Department on a quarterly basis using the same process they use to report Paid Family and Medical Leave premiums.
In addition to the delay of the premium tax collection start date, the benefits' availability for the LTC program has been delayed until July 1, 2026, from January 1, 2025.
Employers with employees working in Washington should be aware of the imminent implementation of the WA Cares Fund on July 1, 2023, communicate with employees, and coordinate with their payroll vendors as necessary to report and collect required premiums.
(See the articles on the background of this subject in the December 21, 2021, January 4, 2022, and February 1, 2022, editions of Compliance Corner.)
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