In 2019 the state of Washington enacted the Cares Fund designed to provide Long Term Care insurance for its residents. However, they delayed its implementation to make improvements in the plan.  That date now begins on July 1, 2023.

The Cares Fund changes were made to address those employees near retirement, those who work out of state and military spouses can opt out expanding those who can apply for exemptions.  Also, some veterans may opt out of the plan.  Contributions will now begin on July 1 of this year and benefits will be available on July 1, 2026. 

Contribution Rate

All Washington workers (unless exempt from the program) pay .58% of their earnings to the fund and employers do not contribute.  Because they rolled out the plan so early, some employers may have already deducted premiums in 2020.  They had 120 days to reimburse those employees for the premiums.

Benefits

Starting in July 2026, each person who is eligible to receive the benefit can access care costing up to $36,500 (adjusted annually for inflation) over their lifetime.

GrowPoint is Ready for the Rollout

Updates since the year end of 2020 have included the WA Cares Fund in the tax definitions and advised employers not to attach it to employees until the state determined the final initiation date. It’s time to make plans for

1. notifying your employees of the upcoming deduction
2. putting your new tax definition in place for the first payroll in July.

The Cares Fund website includes an Employer Tool Kit to serve that purpose. Employer & Community Toolkit – WA Cares Fund   There is a paycheck insert found here  WA Cares Fund Paycheck Insert to include in your paychecks either before July or when the tax goes into effect. 

Making your Cares Tax Definition Active

Check to ensure your WA Cares Fund is in your list of Tax Definitions by going into the Payroll>Maintenance> Tax Definitions list and look for it there.  Then click on the Properties to verify the rate as .58% and make it an Employee Default.  It will not assign the tax to existing employees, but will when you create new ones.

Assign the Tax to all Employees

GrowPoint has a utility to quickly assign Earnings, Deductions or Taxes to a filter of existing employees.  If you have not already assigned the WA CARES fund tax or perhaps not all employees, use this utility to do so. If you have assigned it to employees, but made it Inactive, you need to make it active after your last payroll in June and before your first payroll in July.  In that case you need to go into each employee’s tax definition.

Be prepared with GrowPoint to implement the Washington Cares Fund on July 1, 2023.  The reporting will coincide with the Washington Paid Family Leave on your quarterly Unemployment report with the ESD.  For additional information, check out the website at WA Cares Fund – Long-Term Care Benefits.