Gov. Jay Inslee announces delay of Washington’s new long-term care tax

The new mandatory payroll tax to fund Washington’s long-term care program was set to begin in January 2022

Holding hands

Gov. Jay Inslee announced today a decision to delay the start of the mandatory payroll tax that would fund Washington state’s new long-term care program.

The Washington Cares Fund was scheduled to begin collecting taxes in January 2022 to help pay for long-term care expenses.

In an issued statement, Inslee said he has been in ongoing discussions with legislators about the long-term bill, which aims to help provide much-needed care for Washingtonians as they age. He said legislators have identified some areas that need adjustments, and he agrees and said that legislators need to be given the opportunity to make refinements to the bill.

“I am taking measures within my authority and ordering the state Employment Security Department not to collect the premiums from this program from employers before they come due in April,” Inslee said in a statement. “My actions mean that the state will not collect those funds until the Legislature sorts through these issues. While legislation is under consideration to pause the withholding of LTC fees, employers will not be subject to penalties and interest for not withholding fees from employees’ wages during this transition.”

To learn more about what the Washington Cares Fund and the long-term care program payroll tax, read this August column from Kaylee Brown at Opsahl Dawson.

Joanna Yorke-Payne
Joanna Yorke is the managing editor of the Vancouver Business Journal. She has worked in the journalism field since 2010 after graduating from the Edward R. Murrow College of Communication at Washington State University in Pullman. Yorke worked at The Reflector Newspaper in Battle Ground for six years and then worked at and helped start ClarkCountyToday.com.

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