How Do I Create Long Term Care in Advanced Payroll
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.