Washington Long Term Care (LTC) Services and Supports Act – payroll tax for WA workers delayed until July 2023

Background: Washington state passed the Long-Term Care Services and Supports act in 2019. This bill quickly became known as the “LTC payroll tax law” as it requires WA workers to pay a tax of 0.58% on W-2 payroll amounts to fund LTC benefit payments.  Employers do not pay the tax; it is funded by the employees via a payroll tax.

The payroll tax was originally effective January 1, 2022. However, after the WA governor announced the postponement of the tax, WA legislators quickly moved to enact legislation which formally delayed the long-term care tax until July 2023.

What should an employer do if the tax was already collected from an employee’s paycheck? The legislation requires an employer to refund premiums collected within 120 days of the collection date.


The WA LTC payroll tax has been delayed to July 2023 giving time for legislators to review the bill in its current form and perhaps pass companion legislation to improve upon a few problem areas.

For more information regarding the tax, visit http://www.wacaresfund.wa.gov/.  Bolton published a blog on this topic here which you can review for more details.


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About Michelle Cammayo, Compliance National Practice Leader, Employee Benefits

Michelle Cammayo has close to 20 years of Employee Benefits experience specializing in all lines of health and welfare benefits. Today, Michelle works closely with clients and partners to provide guidance in areas of the law including ERISA, HIPAA, COBRA, FMLA and PPACA. She is also the IMA National Practice Leader for Compliance and endeavors to ensure IMA helps its clients manage and eliminate risk in the most effective manner. She is passionate about educating others and her passion for this shined in the COVID era where Michelle conducted weekly and then monthly webinars providing guidance to employers. Her podcast, Cammayo’s Compliance Talk, has gained popularity in the last three years to become a favorite amongst our clients. She also contributes regularly to our Blog and has authored several articles for industry-related newsletters. Michelle’s consultative approach with employers provides practical advice as employers endeavor to be compliant.

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