Can I opt out of WA Cares fund next year?

Can Employees Opt-Out Of The WA Cares Fund? Yes, an employee may opt-out of the Washington Long-Term Care Program and its taxes and benefits if: The employee is 18 years old or older on the date they apply for the exemption. The employee attests that they have other long-term care insurance.

How do you opt out of the Washington Long-Term Care Tax?

Opting Out of The Washington State Long-Term Care Tax After an employee’s application for exemption is processed and approved, he or she will receive an approval letter from ESD. The employee must provide this approval letter to his or her employer. Employers must maintain copies of any approval letters received.

Is the Washington State long-term care tax legal?

Washington’s new long-term care payroll tax is only on employee wages and income; it is not an employer-matched tax. Employers are required to collect the tax and pay it as with other state payroll taxes in Washington state. The tax rate is 0.58\% or 0.0058 on each employee’s wages and income.

What qualifies as long-term care insurance?

Long-term care (LTC) insurance is coverage that provides nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision.

What is Washington’s long-term care benefit?

The plan, signed into law in 2019 through the Long Term Care Trust Act, will use a 0.58\% payroll tax to pay up to a $36,500 benefit for individuals to pay for home health care and an array of services related to long-term health care including equipment, transportation and meal assistance.

What is Washington long-term care tax?

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.