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New Payroll Tax Coming in Washington State for Long-Term Care

BY: APA Staff | 05/24/19

Beginning January 1, 2022, Washington employers will be required to withhold an employee-paid contribution of 0.58% of a covered employee’s wages to fund a new state-run long-term care program [H.B. 1087, L. 2019]. Gov. Jay Inslee signed the bill creating the new program on May 13, 2019 [Office of the Governor, News Release, 5-13-19].

Contributions for the long-term care program will be remitted to the Washington Employment Security Department (ESD). All wages will be subject to the premium assessment. While there is currently no maximum limit for wages, this could change with regulations.

To the extent feasible, the ESD will use the Paid Family and Medical Leave (PFML) program premium assessment, collection, and reporting procedures. For purposes of the new long-term care program, employees and employers covered under the PFML program will also be covered. The definition of “employment” will also be the same. Note that there is a maximum limit for wages subject to the premium assessment under the PFML program.

The ESD is expected to issue proposed regulations and additional guidance in the coming months.

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