On December 17, 2021, Gov. Inslee announced a delay of the payroll tax that will fund the state's new long-term care (LTC) program - the Washington Cares Fund. Before the governor's announcement, employers were required to report their Washington employees' wages and hours and collect the premiums from employees' wages beginning on January 1, 2022.
Citing the desire to allow lawmakers to improve the law, Gov. Inslee directed the state Employment Security Department not to collect the premiums for this program before they come due in April. He also encouraged employers not to deduct the premiums from employees' paychecks. The hope is that this gives the government time to pass legislation extending the implementation dates until next year.
Employers with Washington employees should be mindful of the governor's announcement and consult with legal counsel about their obligations given this development.
Statement on Delaying WA Cares Fund Premium Assessment »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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