On December 17, 2021, Gov. Inslee and the legislature issued statements to delay the payroll premium collections that will fund the state’s new long-term care (LTC) program — the Washington Cares Fund.
On December 23, 2021, Gov. Inslee issued a statement clarifying that if the legislature fails to change the law, “employers will still be legally obligated to pay the full amount owed to state Employment Security Department (ESD) to begin the long-term care program” since “only the legislature has the authority to eliminate the requirement that employers pay a premium based on withholding from an employee’s wages.” Further, the governor stated that the state of Washington would withhold WA Cares Fund premiums from state employee wages effective January 1, 2022.
Employers with Washington employees should consult with legal counsel and tax advisors to determine their actions given the governor’s most recent comments. Further, if employers choose to delay the premium collections, then they should communicate such change with their payroll division and the vendor as soon as possible.
Statements on Delaying WA Cares Fund Premium Assessment »
Inslee letter to ESD on long-term care premiums collection »
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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