Starting July 1, Washington state will deduct a new tax from paychecks.
Washington State Implements First-in-the-Nation Long-Term Care Payroll Tax
Get ready, Washington workers! In just two days, a groundbreaking long-term care payroll tax will kick in, revolutionizing the way we support our residents in need. Starting July 1, a 0.58% deduction will be made from your paycheck to fund the innovative WA Cares program.
WA Cares is a game-changing initiative that aims to provide long-term care benefits to eligible Washington residents who are facing challenging care stages. By contributing to this program, you’ll be making a direct impact on the lives of those in need.
Exemptions and Contributions
But wait, there’s more! Some taxpayers may be exempt from the WA Cares Fund deduction if they have already purchased an eligible private long-term care insurance plan before November 1, 2021. To apply for an exemption, make sure to submit your request by December 31, 2022, as per the Washington government.
Curious about how much you’ll be contributing? Let’s break it down. For example, if you’re an Evergreen State employee earning $50,000 annually, you can expect to contribute $290 per year. To calculate your own contribution and understand how your taxes will support the WA Cares program, visit the Washington GOP information page.
Benefits and Future Plans
So, what exactly will the WA Cares program cover? Starting July 2026, eligible Washingtonians will receive care services and support costs up to $36,500 (adjusted for inflation) over their lifetime. This includes a wide range of benefits, such as in-home caregivers, meal deliveries, caregiver training, and more. Excitingly, starting in 2026, you’ll be able to easily apply for WA Cares benefits through the convenient online portal.
Leading the Way
Washington State is proud to be at the forefront of this groundbreaking initiative. In fact, other states like California, New York, and Pennsylvania are closely watching our progress. California has even established a task force to explore the possibility of implementing a similar program, while New York and Pennsylvania have their own proposals in the works.
So, let’s come together and make a difference. Starting July 1, let’s support our fellow Washingtonians and ensure that everyone has access to the long-term care they deserve.
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