What you need to know about the WA Cares Act and Long Term Care Insurance
1/19/2022: We are noting that the Washington State Legislature extended the deadline for Long Term Care Law until July 2023. Read this announcement as reported by KUOW: https://www.kuow.org/stories/washington-house-democrats-vote-to-delay-long-term-care-tax-for-18-months
In Washington State, a new law is going into effect on January 1st that will require long-term care insurance for all. This mandatory benefit can help protect individuals and families from the financial burden of long-term care. The WA Cares Fund is a required long-term care insurance benefit for workers in Washington state and is meant to contribute to eligible long-term care-related expenses. The program is funded by a payroll tax by workers in Washington State beginning in January 2022. This program is not optional and is required by state law.
If you purchase your own private long-term care insurance, you can apply for an exemption. You must purchase your private policy before November 1, 2021, to qualify and must apply for an exemption to ESD between Oct. 1, 2021 – Dec. 31, 2022
To apply for an exemption: http://www.wacaresfund.wa.gov/private-insurance/
Self-employed persons are exempt from the WA Cares Act but may choose to opt-in. Under the WA Cares Act, a self-employed individual must elect coverage by January 1, 2025, or within three years of becoming self-employed for the first time.
Self-employed opt-in link: http://www.wacaresfund.wa.gov/self-employed-opt-in/
Here are some more important links to learn more:
Cares Fund website: http://www.wacaresfund.wa.gov/
Washington State Employment Security Department (ESD): http://www.wacaresfund.wa.gov/
FAQ Download: https://kingcounty.gov/~/media/employees/benefits/documents/wa-cares-fund-faq.ashx?la=en
Are you worried about making the right choices regarding the WA Cares Act as a small business owner? Halsey Resources is here to help our clients make the right choice. Just reach out!
