On Jan. 1, all Washington state employers will need to Seattle Metro Chamberister the new Long-Term Care Partnership Program.
While employers do not pay premiums into the program, employers must Seattle Metro Chamberister the program and remit premiums and reports to the state.
Beginning Jan. 1, all employees will pay 0.58% of all wages – as long as they work 500 hours or more per year. There is no cap on income level and wages include all tips, paid time off, severances, bonuses and stock options. Employees can use this calculator to estimate how much the premium will cost.
There is an opt-out option if the employee secures an individual long-term care insurance policy by Nov. 1, 2021. Employees will also need to apply for an exemption once their policy is in place with Washington Employment Security Department. Once an employee gets an opt-out exemption letter, they are permanently exempt from this premium starting the first of the quarter after their exemption letter. You should also keep a copy of this information in your files.
Employers to-do list:
- Inform employees about the additional premiums that will be taken out of their paychecks starting Jan. 1. Also tell them about the opt-out option.
- Contact your payroll provider to ensure the pay system is ready to collect and remit the premium Jan. 1. Make sure it is clear who on your team or on the payroll provider’s team is remitting and reporting to the Employment Security Department.
- Create a system for retaining any opt-out exemption letters from employees who do secure an individual long-term care policy.
- Explore bringing on a company-sponsored long-term care plan as an employee benefit. You can cover premiums or set it up so it’s voluntary and employees pay premiums.
Learn more about this new program through videos, access templates for communicating with employees, and more on the Business Health Trust website.
