Starting January, 2022, Washington State will begin collecting funding for the new Long Term Care Act. This is administered by the Employment Security Department. The employee paid premium will be a percentage of wages starting in January 1, 2022. This Long Term Care deduction is to start on the first January payroll regardless of when the hours were worked.
The percentage is 0.58%. Currently, we do not have any information if there is a maximum withholding amount per year.
There is no employer contribution, but employers are required to collect premiums through employee payroll deductions and remit proceeds to the Employment Security Department (EDS). This agency will deposit funds in a trust for the individual until they qualify for the benefit.
All qualifying employees are subject to the premium assessment, with the following exceptions:
- Individuals who have private long-term care insurance may opt-out: Any employee who attests that they have comparable long-term care insurance purchased before November 1, 2021, may apply to ESD for an exemption from the premium assessment. The employee must provide proof of their ESD exemption to their employer before the employer can waive collecting the premium assessment from the employee’s wages. The employee must apply for the opt-out exemption to ESD between October 1, 2021, through December 31, 2022.
- There may be additional employees who are exempted.
As of 12/23/2021, the WA state Governor said the deduction needs to be withheld from employee's paychecks even though the governor issued a statement that the collection by the state of the LTC benefit will be delayed.
For more information visit the Employment Security Department website.
The latest information from Employment Security Department is the Long Term Care will be reported with PFLMA at the same time. The same vendor for PFMLA should be used for the Long Term Care vendor.
Go to: Advanced Payroll >Payroll Control Panel: Click the Cog Wheel near the upper right hand corner and choose Setup
In the program's Classic View, Go to: Advanced Payroll>Payroll Setup
It is recommended to wait to add Long Term Care or change Long Term Care rates for the new year until after the last payroll of the current year is complete.
Click the Benefits & Deductions Tab
Click Add New
- Enter Plan Number- This is the sequence they appear on the screen. If left blank, the program will add the number automatically
- Enter Plan Description - Long Term Care or Wa State Long Term Care
- Double click on Vendor - select the same vendor used for PFML or PFMLA
- Select Group - Other
- Make sure the Employee: Soc Sec Med FWT and W2 match what's shown below
- Click Add New in the lower section, under the Settings Tab.
- Enter a description for the Plan Category
- Enter .0058 in the EE Decimal Field. This represents 0.58%.
- There is no EE Maximum and no EE Cap.
- Click Save
- In the image above, click Save
- Please see the following site for additional information https://www.governor.wa.gov/news-media/inslee-statement-payments-collected-long-term-care-program before clicking the Apply to Employees button. Click Apply to Employees to apply this deduction to employee accounts to be used on the next payroll cycle,
- In the Setting drop down, choose LTC or the Description used in
- For the Group, choose either All or select the individual group to apply the deduction to.
- The checkbox Select for All Positions will apply this deduction to the Default Deductions under the Positions tab in Payroll Setup for All Positions. Checking this box ensures that the deduction or benefit will be added to their payroll record when the employee is added and a current position is chosen. Check this box if needed.
- Click Apply
- If you checked the Select For All Positions check box, Click Yes to Apply Plan To All Employees
The deduction is now added to all employees. If there are employee's who are exempt from the deduction, go to their employee record and remove the deduction. If there is an open payroll period, the deduction will need to be added to each employee in that payroll period if needed.
The Long Term Care deduction will be reported quarterly with PFMLA. When running the benefit reports for regular payroll, uncheck Long Term Care from the list. See How Do I Create Long Term Care Reports? (The Create Long Term Care Reports help information will be available when information becomes available from the WA State Employment Security Department on how to report the Long Term Care deduction.