Washington Long-Term Services and Supports (LTSS) Tax
Per the state of WA, the LTSS tax is currently paused until 2023; we are awaiting details from the agency regarding the timeline of when this tax will become effective.
In 2019, WA established a long-term care insurance benefit for all eligible Washington residents. This program is funded by worker contributions into a trust fund, the WA Cares Fund. This tax is effective January 1, 2022 under the Washington Cares Fund.
More detailed information about this tax can be found on the Washington State Department of Social and Health Services website, or visit the WA Cares Fund website regarding the pending legislation.
Setup and Calculation
- The WA LTSS tax will be managed via the Washington Employment Security Department.
- All Washington employees who work in Washington, receive wages reported on a Form W-2, and work at least 500 hours per year, are subject to this tax. Wages earned in Washington are subject to the tax. This applies to residents and non-residents of Washington.
- Per the WA Cares Fund, though this is an employee paid tax, ERs will have the option to cover this premium cost on behalf of their employees, in which case employees will not be withheld on their paychecks.
- This tax has an exemption option for employees. Employees must apply for an exemption directly, and the employer cannot opt out employees.
- LTSS tax is calculated at a rate of 0 .58% premium assessment (for example, $ 0 .58 premium assessment on every $100 of eligible wages).
- There is no wage base for this tax and employers will remit quarterly. Tips are not subject to this tax.
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