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HR Director Playbook: Managing WA Cares Enrollment & Exemptions

Watch Time: 2 Mins Reading Time: 6 min read Presented by Guy Livingstone Updated April 27, 2026
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GL

Guy Livingstone

Co-Founder

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Ready to review these numbers for your organization?

If you're an HR director in Washington State, you already know about the WA Cares Fund. The 0.58 percent payroll deduction is live. But the operational details of managing enrollment, exemptions, and employee communications are where most HR teams get stuck.

Here's what you need to have in order right now.

First, exemption records. Any employee who applied for an exemption before November 1, 2021 should have an approval letter from the Employment Security Department on file. Pull those records and confirm you have documentation for every exempt employee. If you don't have it, you have a compliance gap.

Second, SB 5395. The 2025 legislation created a narrower exemption path for employees who obtained qualifying private LTC coverage after the original opt-out window closed. These exemptions have different documentation requirements. Track them separately from the original cohort.

Third, employee communications. Employees who are not exempt will see 0.58 percent withheld from every paycheck with no cap. A $200,000 earner loses $1,160 a year. A $400,000 earner loses $2,320. Proactive communication about what WA Cares is, what it provides, and what exemption status means will significantly reduce inbound questions to your HR and payroll teams.

Fourth, new hire eligibility. Employees joining your organization need to understand their WA Cares obligations during onboarding. Build this into your new hire workflow now rather than handling it reactively.

Finally, look beyond Washington. California, New York, Minnesota, and several other states have pending LTC payroll tax legislation. If you have employees in any of those states, the playbook you build for Washington will need to scale.

Hollowtree works with HR teams to audit exemption status, build compliant enrollment workflows, and evaluate group LTC options for future enrollment windows. Schedule a call with our team to review your current position.

Quick Answer

WA Cares Fund is now active. HR teams should confirm exemption status for any employees who obtained qualifying private LTC coverage, communicate ongoing payroll deduction requirements, and understand the appeals process.

Key Takeaways

Verify Exemption Records

Employees who applied before Nov 1, 2021 should have an exemption approval letter — confirm it is on file.

Communicate Early

Employees without exemptions will see 0.58% withheld from wages. Proactive communication reduces payroll questions.

Ongoing Enrollment Windows

Some states with pending legislation will offer future enrollment windows — track these to advise employees.

Document Everything

Maintain records of exemption approvals, denials, and payroll deduction start dates for audit purposes.

Frequently Asked Questions

What is the WA Cares Fund payroll deduction?

WA Cares requires a 0.58% deduction from employee wages with no cap. Employers withhold and remit quarterly to the Department of Employment Security. There is no employer match -- the cost is entirely employee-funded.

Which employees are exempt from WA Cares?

Employees who applied for an exemption before November 1, 2021 and received an approval letter are permanently exempt. SB 5395 (2025) added narrower exemptions for employees who subsequently obtained qualifying private LTC coverage.

What does HR need to have on file for exempt employees?

A copy of the employee's exemption approval letter from the Employment Security Department. HR should confirm these are on file for every exempt employee and document any SB 5395 exemption claims separately.

How should HR communicate WA Cares deductions to employees?

Draft a clear all-employee communication explaining the 0.58% deduction, what the WA Cares Fund provides, when benefits become available (January 2026 for qualifying employees), and what the exemption status means for employees who already opted out.

Can employees who missed the original opt-out window still get an exemption?

Only under the narrower SB 5395 provisions, which require employees to demonstrate they hold qualifying private LTC coverage meeting specific criteria. The original broad opt-out window is permanently closed.

Should HR track LTC mandates in other states?

Yes. California, New York, Minnesota, and several other states have pending LTC payroll tax legislation. HR teams at multi-state employers should monitor these developments and plan for potential future enrollment windows.

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Hollowtree handles 100% of the implementation so your team can stay focused on what matters.

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Employee communications & enrollment
Compliance documentation & reporting
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About the Presenter

GL

Guy Livingstone

Co-Founder

As a Co-Founder of Hollowtree, I am dedicated to modernizing the specialty insurance landscape. I specialize in transforming bold ideas into thriving businesses by applying high-level strategy and market innovation to the DI and LTC sectors. My focus is on scaling platforms that simplify complex benefit distributions, making insurance more accessible and efficient for our partners. I thrive on collaborating with resourceful innovators who want to challenge conventional thinking and build strategic partnerships that redefine industry standards.

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