Overview: The state of Washington has approved legislation that creates a state-run program that will provide long-term-care benefits to eligible individuals. Employers will be required to withhold employee contributions and remit them to the state, but employers aren’t required to contribute to the program themselves.
All employees are required to contribute to the program, unless they demonstrate that they already have long-term care insurance.
Beginning January 1, 2022, employers must begin withholding employee premiums via payroll deductions and remitting them to the state Employment Security Department. All wages are subject to the premium assessment. The initial premium rate is 0.58 percent of the employee’s wages. The premium rate may be adjusted every two years beginning in 2024, but in no case may it be greater than 0.58 percent.
To be eligible to apply for benefits under the program, individuals must have contributed to the program for the equivalent of either:
- A total of 10 years without interruption of five or more consecutive years; or
- Three years within the last six years.
In addition, individuals must have worked at least 500 hours in each year during the 10-year or three-year time frame.
Beginning in 2025, eligible individuals may use long-term care benefits for the following services:
· Adult day services;
· Care transition coordination;
· Memory care;
· Adaptive equipment and technology;
· Environmental modification;
· Personal emergency-response system;
· Home safety evaluation;
· Respite for family caregivers;
· Home delivered meals;
· Dementia supports;
· Education and consultation;
· Eligible relative care;
· Professional services;
· Services that assist family members caring for eligible individuals, including training for individuals providing care who are not otherwise employed as long-term care workers;
· In-home personal care;
· Assisted living services;
· Adult family home services; and
· Nursing home services.
Action Required: Washington employers should ensure that they are ready to withhold employee premiums for the state’s long-term-care program beginning January 1, 2022. Employers should also give employees advance notice of the new withholding and direct employees to the state Employment Security Department if they have any questions about the program.
Please contact your dedicated service professional with any questions.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.