Toolkit — Employers begin collecting WA Cares premiums in January 2022

Toolkit — Employers begin collecting WA Cares premiums in January 2022 https://wahospitality.org/wp-content/uploads/2021/07/LTC_website800x500.jpg

Starting in January 2022, employers must collect funds from their employees for long-term care. 

WA Cares was enacted by the state Legislature in 2019 so employees could contribute funds to services they may need in the future. Each employee will contribute $0.58 for every $100 they earn to this fund in 2022. This amount is subject to change. Employees can start drawing on this fund starting January 2025. 

What this means for employers 

As an employer in Washington, you are required to report your employees’ hours and wages every quarter and pay the premiums, the same way you do for Paid Family & Medical Leave. The premiums come from your employees and employers do not pay any share of this contribution. You can learn more about your responsibilities as an employer here. 

Employers do not start collecting these premiums until January 2022 and you can expect to see more news about WA Cares from the Washington Hospitality Association in the coming months. 

Recipients of this benefit can access benefits of up to $36,500 (lifetime maximum) including, but not limited to: 

  • Professional and personal services in their home, an assisted living facility, adult family home or nursing home 
  • Adaptive equipment and technology such as hearing devices and medication reminder devices 
  • Home safety consultations 

Employees qualify to receive this benefit if they have worked and contributed to the fund for: 

  • At least 10 years at any point in their life without a break of five or more years  

— OR — 

  • Three of the last six years at the time they apply for benefits  

 — AND — 

  • work at least 500 hours a year. 

Read more about eligibility here. 

Other options

Employees can apply for a permanent exemption to this fund. Read more about exemptions here. 

Your employees have a choice if they act soon to purchase their own private long-term care insurance policy that may qualify them to opt out of the payroll tax. Their policy must be purchased before Nov. 1.

BuddyIns

BuddyIns offers options to purchase long-term care insurance policies. The company held a webinar for those with questions: Watch the replay here.

Association Resources Contact Information

LTC Specialist, Planning and Insurance: BuddyIns, Inc Marc Glickman C: 818-264-5464  marc@buddyins.com

Group or Individual Plans:

HIHIT: CLG Employer Resources Holly Hahn C: 425-941-7603 hollyh@clger.com

The Partners Group Todd Miller- tmiller@tpgrp.com

Individual Plans:

Nicholson & Associates Insurance Drake Nicholson P: (360) 352-8444 E drake@nichinsure.com

New York Life: Jeanette Fiore P: (509) 528-7097 jfiore@ft.newyorklife.com

Villano Insurance & Financial Services:  Vince Villano  P: (253) 503-3573  vvillano@farmersagent.com

Anyone who is self-employed can opt in to the program. Click here to read more.