For our business clients - On January 27, Governor Inslee signed two bills passed by the Legislature making key improvements to the WA Cares Fund. These reforms will address coverage gaps and delay program implementation by 18 months. Changes include:
* Workers near retirement (born before 1968) will be able to qualify for partial benefits on a pro-rated basis.
* Workers who live out of state and work in Washington, military spouses, workers on non-immigrant visas, and certain veterans with disabilities will be able to opt out of the program if they choose.
* Workers will begin contributing to the fund in July 2023. Employers will refund any premiums collected in 2022 so far.
Most immediately, premium collection for WA Cares won’t begin until July 2023. The Employment Security Department (ESD) won’t accept any WA Cares premium payments for the first quarter of 2022.
Newly updated information and guidance is available on the WA Cares website. For now, employers should:
* Stop withholding WA Cares premiums from employee earnings.
* Reimburse employees for WA Cares premiums within 120 days of the date premiums were collected.
* Continue to maintain copies of exemption approval letters for workers who’ve provided them.
If you're a small business owner with employees and have questions about these recent changes to the Washington Long-Term Care Trust Act, give us a call at 253.858.5434.