In a significant move, the Washington state legislature has established the WA Cares Fund, a long-term care insurance benefit fund aimed at providing comprehensive coverage for all eligible employees in anticipation of future long-term care needs. This newly introduced fund allows employees to contribute while actively employed, ensuring they have access to vital long-term care services when the time comes.

Employers with one or more employees performing work within the state of Washington should take note of this crucial development. The implementation of the Washington State Cares Fund is set to take effect on July 1, 2023, and it is essential for employers and employees to familiarize themselves with the upcoming changes.

Starting from July 1, 2023, most of the payroll companies will commence deductions of $0.58 per each $100 of earnings from the paychecks of qualifying worksite employees. These deductions will be allocated to the Washington State Cares Fund, ensuring the availability of essential long-term care benefits in the future.

It is important to note that worksite employees who already hold an existing private long-term care insurance exemption will continue to be permanently exempt from the WA Cares Fund. If these employees have already provided their exemption approval to their respective payroll company, no further action is required on their part.

However, worksite employees who have not yet shared their existing exemption approval letter with their payroll company, or those who are interested in applying for a new exemption for a covered reason, are strongly advised to visit and carefully review the official website of the Washington State Cares Fund. The website offers detailed information and guidance on the exemption application process.

For any legal guidance or further clarification regarding the Washington State Cares Fund, individuals are encouraged to consult with experienced professionals.