WA Cares Fund / Long Term Care

The WA Cares Fund is a new tax our members employed in Washington State will see deducted from their paychecks beginning January 1st, 2022. An overview of the WA Cares Fund can be found on their website at: http://www.wacaresfund.wa.gov/ . Please note that as a new law just starting to be implemented there may be changes over the next couple years as the implementation evolves.

This is a calculated tax and we estimate that most of our members will see an additional $9-$11 taken out of their weekly paychecks.

For any member that plans to retire or stop working in Washington State within the next 10 years, it is possible that you may not become vested or be eligible for any benefits. Additionally, for those members who will work for 10 or more years in Washington State, you will need to work at least 500 hours in each of your vesting years. Under certain conditions eligibility may start in as little as 3 years.

There is the option of being exempted from the tax. This requires that you 1) Purchase a qualifying Long-Term Care private insurance policy BEFORE November 1, 2021 and 2) Be at least 18 years of age and 3) Submit an exemption application to the Employment Security Department (available beginning October 1st, 2021).

If you do get an exemption from the WA Cares Fund it will be permanent and you will never be able to opt back into the plan. Also you will be responsible for providing your current and ALL future employers with your Exemption Approval Letter.

This article is not meant to provide any guidance, nor is it meant to be a comprehensive overview. The intent is to bring awareness to this tax that will be implemented at the beginning of next year, and answer some of the questions we have been getting. Please visit http://www.wacaresfund.wa.gov/ for the official overview and details.