On December 17, Governor Inslee (along with Senate Majority Leader Andy Billig and House Speaker Laurie Jinkins) released a statement delaying the Washington Cares Fund premium assessment. Here is what we know right now:
- As noted on the Employment Security Department (ESD) website, ESD will
not collect premiums from employers until April 2022 or until further direction is received. However, the existing law still directs employers to begin collecting premiums from their employees beginning January 1. For this reason, each employer will need to decide whether they will implement the law as it stands or await legislative action.
We suggest you work with your legal counsel if you have additional questions regarding paying this tax.
- Employers will not be subject to penalties and interest for not withholding fees from employees' wages during this transition.
- All other components of the bill remain unchanged at this time.
- Legislators have identified some areas of the bill that need adjustments. A delay in premium assessments will enable legislators to make refinements to the bill.
- The Washington State Legislature is back in session in January 2022 and will be presented with a recommendations report from the Long-Term Services and Supports Commission.
- The November 1 "opt-out” deadline to purchase private long-term care insurance has not changed. Employees who had coverage in place prior to this date can still submit for an exemption.
- A new bill has already been proposed (HB 1732) which would delay the payroll tax until July 2023. Visit AWC’s advocacy page for more information.
Questions from employees
Employees and spouses that opted into the Trust-sponsored Trustmark long-term care and life coverage have already begun calling employers to ask about delaying or terminating their Trustmark coverage. While
we cannot provide specifics about their coverage, we can confirm that if employees/spouses cancel their coverage, they will not be eligible to re-enroll at a later date through Trustmark.
We encourage employees to maintain their private long-term care insurance as we await changes in this law. Employees and/or employers that opted into offering their employees the AWC Trust-sponsored coverage through Trustmark can contact Trustmark directly
at 1-800-918-8877 or email CustomerCare@TrustmarkBenefits.com with questions.
Keeping you up to date
The AWC Trust will continue to keep you updated on any changes that occur and will provide any additional information learned in