Untangling the Employer Requirements of the WA Cares Fund

The WA Cares Fund is a mandatory long-term care insurance benefit for workers in Washington State. Its purpose is to help offset eligible long-term care expenses. Workers contribute a small percentage of their income into the fund through a mandatory payroll tax. The earned benefit can be up to $36,500 (adjusted for inflation) and covers professional care, equipment, home safety evaluations, and family caregiver compensation.

The WA Cares Fund has faced controversy and criticism for several reasons. Critics argue that the $36,500 benefit is too small to be meaningful for long-term care expenses. Additionally, there are concerns about eligibility restrictions—people who pay the tax won’t receive the benefit if they move out of Washington when they need assistance. Furthermore, opponents have questioned the program’s solvency, especially since a significant number of workers opted out of participation. Despite these criticisms, proponents see WA Cares as a step toward supporting family caregivers and addressing long-term care needs in the state.
​
Initiative 2124 will come before Washington State voters in November, and they will be given the opportunity to decide the fate of the fund. The measure proposes that employees and self-employed individuals must actively choose to retain coverage under RCW 50B.04, with the option to opt out at any time. Additionally, it seeks to repeal an existing law related to exemptions for employees. The initiative aims to provide consumer choice regarding long-term care insurance and addresses concerns about affordability, adequacy, and solvency of the current program.
​
Regardless of your thoughts on the program, employers in Washington state have a responsibility that involves correctly implementing payroll deductions for the Washington Cares Fund. Starting from July 1, 2023, employers were required to collect premiums from Washington employees in the same manner as they currently do for Paid Leave. Employers are not required to contribute separately to the WA Cares Fund, but they must remit employees’ premiums to the Employment Security Department.

Thankfully there are many resources available from the Employment Security Department to help business owners navigate the process.  Business owners can access a library of webinars at www.wacaresfund.wa.gov/webinars. One can view old videos and sign up for upcoming live webinars. There is also a dedicated webpage with Toolkits and Resources at https://wacaresfund.wa.gov/toolkit#resources-for-employers.

Author

Matt Murphy, TCRCC Government and Regional Affairs Director, ​[email protected]