What You Need to Know about the WA Cares Fund: Effective July 1st 2023
The Washington Cares Fund program was slated to begin in 2022 but was delayed by state legislation for 18 months. Payroll contributions for this program will now start on July 1, 2023.
Below is information for you and your Washington employees regarding how the program works. As we get closer to July 1st, we will provide additional information regarding the specific configurations for your Sage payroll software, if applicable.
What is the Washington Cares Fund?
The WA Cares Fund is a new program that gives working Washingtonians access to long-term care coverage when they need it. WA Cares is designed to help you live independently in your home as long as possible. Benefits can be used for a wide range of services like in-home care, paying a family caregiver, home safety modifications, home-delivered meals, transportation, and more.
WA Cares is self-funded by worker contributions and investment earnings on those contributions. Working Washingtonians earn $36,500 in lifetime long-term care insurance coverage (adjusted annually for inflation) by contributing 0.58% of their wages in premiums during their working years. You will only contribute to WA Cares Fund while you’re working. Once you retire or if you leave the workforce temporarily, contributions stop.
Workers begin contributing to WA Cares on July 1, 2023, and the typical (median) earner will contribute about $24/month. You can estimate your own contribution using a calculator on the WA Cares Fund website.
The private insurance exemption
Workers who had private long-term care insurance on or before Nov. 1, 2021 were able to apply to the Employment Security Department for an exemption from the WA Cares Fund from Oct. 1, 2021 until Dec. 31, 2022. This opt-out provision is no longer available. Under current law, these exemptions are permanent and if you have received an approved exemption, you will not be able to enroll in WA Cares.
If you previously applied for a private insurance exemption and received an approval letter from the Employment Security Department (ESD), your exemption is still valid. You do not need to reapply for an exemption, but you should make sure your employer has your exemption letter on file. If you can’t find your exemption letter, you can download a copy from the Secure Access Washington account you used to apply for the exemption.
New exemption categories
As of Jan. 1, 2023, you can apply for an exemption from WA Cares if any of the following applies:
- You live outside of Washington.
- You are the spouse or registered domestic partner of an active-duty service member of the U.S. armed forces.
- You have a non-immigrant work visa.
- You are a veteran with a 70% service-connected disability rating or higher
These exemptions will be available on an ongoing basis and you qualify for these exemptions only as long as these circumstances apply. If you no longer qualify for your exemption, you will be required to notify ESD and your employer within 90 days.
Exception: Veterans with a 70% service-connected disability rating or higher will receive a permanent exemption.
New change to the original program
People who are near retirement earn partial benefits for each year they work. Anyone born before January 1968 can earn 10% of the full benefit amount for each year they work at least 500 hours.
Additional Resources
On January 18, 2023, the WA Cares Fund team hosted a webinar on the basics of long-term care and how WA Cares works.
You can find presentation slides for this webinar and upcoming webinar dates here.
How to Configure the WA Cares Fund Tax for Sage 100 Payroll
DSD’s Sage 100 Managing Consultant, Shari Eckersley, walks you through configuring the WA cares fund tax for your Sage 100 Payroll in this 15 minute guide.
You can also find more information on the program’s website:
To stay up to date on WA Cares news and events, subscribe to the program’s mailing list. For any questions on the state required program, you will need to reach out to them directly. Find contact information here.
