A new piece of legislation enacted in Washington will impact both employers and employees and, in some cases, require timely action. SB 1323 creates a new payroll tax designed to finance state long-term care benefits for Washington residents. A recent article from the National Law Review offers helpful details, including:
- As of January 1, 2022, all Washington employees will pay the new 0.58 percent payroll tax, with some exceptions (the federal government, federal tribes, the self-employed, and employees subject to collective bargaining agreements within a certain window).
- Benefits of the program become available starting January 1, 2025 and equal up to $100 per day for qualified employees (with a lifetime cap of $36,500).
- Qualified employees must contact the state Department of Social and Health Services to obtain a determination allowing them to receive benefits.
- You can be exempted from this IF you purchase and have in place private LTC insurance by 10/31/2021 and file for an exemption.
For more details, including how covered employees can receive an exemption from paying the tax, what factors are required for an employee to qualify for benefits, and what long-term care services are approved for the program, click here to read the article in full.
VSH CPAs will continue to monitor any changes. We encourage you to contact us with any questions.