You may still be eligible to opt out of WA Cares payroll tax

Hundreds of thousands of people may be eligible to avoid a payroll deduction for Washington’s fledging long-term care insurance program, according to the state Employment Security Department.

But the June 1 deadline for those still able to opt out is quickly approaching.

Employers will start deducting a 0.58 percent payroll tax on nearly all Washington employees start July 1 to fund a first-in-the-nation long-term care insurance program. The implementation of the WA Cares Fund, intended to provide up to $36,500 to help older adults who need help with daily activities, has been delayed since 2022.

Lawmakers passed changes to the program that year to allow additional people, like out-of-state workers and those with temporary visas, to opt out. So far, only around 10,000 people falling into those categories have submitted exemptions to the Employment Security Department.

The median income earner making $50,100 will see a $24 monthly or $288 annual payroll deduction, unless they have already obtained an exemption approval letter by having private long-term care insurance.

People still eligible to opt-out include:

• Workers who are a spouse or domestic partner of an active-duty U.S. armed forces member
• Workers who work in Washington but live out of state
• Workers who have a temporary nonimmigrant visa like a H-2A or H-1B visa

Those who want to apply for an exemption should follow instructions on wacaresfund.wa.gov/exemptions.

Once an application is approved, worker should be able to access a copy of their approval letter and submit it to their current employer.

The Employment Security Department said it will review applications on an ongoing basis and applications approved on or after July may not be effective until Oct. 1 since premiums are collected on a quarterly basis.

The deadline for all other workers to opt out of the program by obtaining separate private long-term insurance passed at the end of 2022, and the option is no longer available. Around 490,000 people ultimately received an exemption.

People who are self-employed are not subject to the deduction but can opt in to the program.