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Long-term care program & tax delayed for 18 months

Long-Term Care program & tax delayed for 18 months – Although AGC supported repeal of the state’s Long-Term Care program, it appreciates that the Legislature and Governor Inslee took early action on two bills that give employers the certainty they need regarding the program and payroll tax.
The Governor signed Substitute House Bill 1732 into law, which delays the implementation of the Long-Term Care program until July 1, 2023, including the .58-percent payroll tax. It also changes the date that benefits become available from January 1, 2025, to July 1, 2026. The bill also allows individuals born before January 1, 1968, who do not meet the program’s vesting requirements, to receive partial benefits based on the number of years of premium payments. Employers are also required to refund employees any  premiums collected for this program within 120 days of the premium collection. This bill included an emergency clause meaning that it goes into effect immediately.
Governor Inslee also signed Engrossed Substitute House Bill 1733 into law, which establishes additional exemptions to the Long-Term Care program. Beginning January 1, 2023, people may apply to ESD for an exemption from the LTC program if they are workers who live out of state and work in Washington, military spouses or registered domestic partners, workers on non-immigrant visas, and certain veterans with disabilities.  ESHB 1733 goes into effect on June 9, 2022.

For more information, contact Michele Willms.

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