The simple answer right now is that if you want to remain exempt from the WA Cares Payroll tax, whenever it becomes effective, you should not terminate coverage. This could change at some point in the future but will require legislation from the House and Senate. 

Last week, the Senate Democratic Caucus to Governor Inslee, asked for a delay in the WA Cares Premium Assessment until 1/1/2023.  The “ask” was to delay the payroll tax assessment for one year in order to “fix” some of the many problems with the program. It was not to eliminate the program or payroll taxes required to fund it.  Rather, the requested “fixes” to the program, such as shorter vesting periods and benefits for out of state residents would dramatically increase the cost of the program, which already appears underfunded.

If your approved exemption letter is dated 12/31/2021 or earlier, you will be exempt from the WA Cares Fund (LTC) starting January 2022.

If your approved exemption letter is dated in January, your exemption will not be effective until April 1, 2022. You will pay the WA Cares Fund (LTC) tax for the first quarter of 2022.

According to the WA Cares Fund website, the Employment Security Department is working on exemption applications on a first come first serve basis. They are working as quickly as they can, but can only guarantee they'll process your application before the end of the year if you submitted your request on or before December 1, 2021. You can check the status of your request online through Secure Access Washington Paid family and Medical Leave services (the same portal you used to apply for your exemption). Unfortunately, the Employment Security Department is not able to quote timelines for individual applications outside of that.

Once you receive your WA Care Fund letter of exemption from the Employment Security Department, please send a copy to benefits@ohsd.net for processing. Keep a copy for your records.

If you purchased a private long-term-care insurance policy that was in effect prior to 11/1/2021 (i.e. AllState), please remember to apply for your Washington Cares Fund payroll tax exemption through Washington State's Employment Security Department. See WA Cares Fund - Instructions to Apply for Exemption. Employees can apply for their exemption prior to receiving their policy certificate from AllState. The Employment Security Department exemption application process does not ask for any policy-specific details.

In order to qualify for benefits under the new LTCA program, you must be vested in the program.

To qualify for benefits under the new LTCA program, you must vest by working and contributing to the fund for:

• At least 10 years at any point in your life without a break of five or more years within those ten years, or
• Three of the last six years at the time you apply for the benefit, and
• At least 500 hours per year during those years.

If you do not work and pay taxes into the LTCA program long enough to be vested, you will not be able to access program benefits after leaving the workforce.

The money deducted from your paycheck each month under the LTCA program is a state tax (similiar to unemployment tax) and will not be refunded to those unable to access the program benefits.

All employees in Washington State are required to pay the new LTCA tax beginning January 2022, unless they have opted out. This includes temporary, substitute, or seasonal employees.

To opt out, you must:

• Apply and be approved for an exemption.
• Be at least 18 years of age.
• And purchase a private long-term care insurance plan before November 1, 2021. Long-term care insurance is defined in RCW 48.83.020.

The State of Washington Employment Security Department is developing the process to opt out of the new LTCA program. Workers can apply between October 1, 2021 and December 31, 2022. More information will follow on how to opt out once it becomes available.

Washington State has recently signed into law the Long-Term Care Trust Act, which creates a publicly funded long-term care benefit for Washingtonians that provides a basic level of long-term care protection for working residents. You may need to take action if you want to opt out of this program and tax.

The Long-Term Care Trust Act requires individuals to have a long-term care insurance policy in place in one of two ways:

1. Automatic enrollment through the State of Washington with a new payroll tax of .58%, paid by the employee. Deductions will begin with the first paycheck of 2022.
2. Enrollment in a privately purchased policy prior to 11/1/2021 with approval from the State of Washington to opt out of the State LTCA program.

While this is new information, the school district will keep you updated if there are new developments in this law.

For more information, visit http://www.wacaresfund.wa.gov/.

This benefit is a variety of services that help meet the medical and non-medical needs of people with a chronic illness or disability who cannot care for themselves for long periods of time. Such services typcially include assistance with normal daily tasks like dressing, bathing, and using the restroom. Long-term care can be provided at home, in the community, in assisted living facilities, or in nursing homes.

• Benefits are only payable to facilities in Washington State
• $36,500 lifetime benefit cap
• No income cap on the 0.58% payroll tax
• 10-year vesting schedule to receive benefits
• No future opportunity to opt out of the plan if an individual does not have their own LTC plan prior to 11/1/2021
• No guarantee that the current payroll tax percentage of 0.58% will not increase in the future

Example cost(s) to employees:

• Cost to employee is $5.80 per one thousand dollars earnings
• Employee earning $50,000 per year will have their income reduced by $24.17 per month

Individuals have the one time ability to opt-out of this tax permanently. Any individual who has a long-term care policy in place prior to 11/1/2021 may apply for a lifetime excemption from the new payroll tax. The period of time the State will accept applications for exemption will begin October 1, 2021 and will end December 31, 2022.

You may consider purchasing a private long-term care policy if you do not already own one. To help you decide if opting out of the LTCA is the right choice for you and your family, follow this link to calculate the cost of the new tax and compare the cost to a new, privately-purchased policy: Conduct Your Anonymous Assessment Now. Please be aware that the site is a solicitation for insurance care and is not connected with the state or the school district. If you decide to purchase a new long-term care policy, the website will connect you with a long-term care specialist who will help you through the enrollment process.

You can also visit the Office of the Insurance Commisioner's website for a list of insurers approved to sell long-term care insurance policies in Washington state: https://www.insurance.wa.gov/long-term-care-insurance-companies-approved-sell-washington-state.

WA Cares Fund and WA Cares are programs of the Washington State Department of Social and Health Services. WA Cares Fund was developed by the passing of the Long-Term Care Trust Act, which creates a new fund all Washington workers contribute to while we are working so we can access long-term care when we need it.

Need more help?

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The Washington State Office of the Insurance Commissioner protects insurance consumers and oversees the insurance industry. They answer questions, investigate problems, and maintain a statewide network of volunteers who advise consumers on health-coverage issues.

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