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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