Employers in Washington already face a 0.58% uncapped payroll tax under the WA Cares Fund, and similar mandates are advancing in New York, California, and Pennsylvania. A qualifying private LTC plan lets employees opt out of the state tax entirely, often at a lower total cost -- and Hollowtree handles 100% of the implementation.
Frequently Asked Questions
When does the Washington LTC mandate take effect?
The WA Cares Fund payroll tax began collecting on July 1, 2023 at 0.58% of wages with no income cap.
Can employees opt out with private coverage?
Yes, but the opt-out window closed on December 31, 2022 for the initial cohort. New hires have 12 months from hire date to secure a qualifying private plan.
Which other states are developing LTC mandates?
New York (Bill S1179), California (task force active), and Pennsylvania (legislative review) are all within 12-24 months of implementation.
What does a corporate carve-out cost?
Total cost varies by headcount and demographics, but most employers find the private plan costs less than the state payroll tax while providing superior benefits.
Zero Lift for Your HR Team
Hollowtree handles 100% of the implementation so your team can stay focused on what matters.