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Effective January 1, 2022, there is a new payroll tax coming to all employees who perform work in the State of Washington.  This new tax will fund the Washington Long Term Services and Support Trust Program (LTSS).
LTSS Program
This is the first long-term care program in the nation and will be exclusively funded with mandatory wage withholdings.  The LTSS Trust Program will provide a long-term care lifetime benefit of up to $36,500 to eligible beneficiaries as early as January 1, 2025 (provided eligibility criteria are met).
Your Cost
$.58 for every $100 will be withheld from your paycheck beginning January 1, 2022.  At this time, there is no income cap on the tax.
Any individual working in WA state, over the age of 18, who secures a long-term care policy before November 1, 2021 (that meets the minimum coverage requirements established by the state of WA), and files for and receives an exemption notice from the Employment Security Department (ESD) within the specified timeframes may receive a lifetime exemption from the tax.
Employee Information & Education
Due to the impact of this new tax, and its long-term implications, we are in the process of securing an employee webinar that will review the LTSS Program, its benefits, costs, and potential options for securing an exemption and locating an alternate policy.
Watch your email for more information on the upcoming webinar.
For additional information you may also visit Washington State’s WACaresFund website.
Thank you,
Connie Majors, SHRP
Personnel/Benefits Specialist