WA Cares: Implementation timeline and new employee exemptions

Premium collection begins in July (Q3)

Worker contributions to the WA Cares Fund, the state’s new long-term care insurance program, start next year. Beginning July 1, 2023, you must collect WA Cares premiumsfrom your employees' wages and report their wages and hours at the end of each quarter—the same way you do now for Paid Leave. Reporting will begin October 2023 and will follow the same payment process as Paid Leave.

As an employer, you won’t pay any share of WA Cares premiums for your employees.

Previously approved exemptions are still valid

Workers who had private long-term care insurance on or before November 1, 2021, are able to apply to ESD for an exemption from the WA Cares Fund until December 31, 2022. Under current law, these exemptions are permanent and employees who have received an approved exemption will not be able to re-enroll in the program.

If your employees previously applied for a private insurance exemption and received an approval letter from ESD, their exemption is still valid. They do not need to re-apply and you should keep their exemption letters on file.  Employees who can’t find their exemption letter can download a copy from the Secure Access Washington accountthey used to apply for the exemption.

New exemption categories

Beginning January 1, 2023, Washington workers will be able to apply for an exemption from WA Cares if any of the following apply to them:

• They live outside of Washington.
• They are the spouse or registered domestic partner of an active-duty service member of the United States armed forces.
• They have non-immigrant work visas.
• They are veterans with a 70% service-connected disability rating or higher.

Workers will only qualify for these exemptions as long as these circumstances apply. If workers no longer qualify for their exemption, they will be required to notify ESD and their employer within 90 days. Exception: Veterans with a 70% service-connected disability rating or higher will receive a permanent exemption.

Tracking employee exemptions

Some employees may choose to apply for an exemption from WA Cares coverage. It’s their responsibility to apply, and—if approved—to notify you and give you a copy of their approval letter from ESD.

Once notified, you must:

• Not deduct WA Cares premiums from employees who’ve provided an ESD exemption approval letter. Note: this letter will list the date on which the employee’s exemption takes effect.
• Keep a copy of your employees’ approval letters on file.

It is the employee’s responsibility to notify you of any changes to their exemption status and failure to do so can result in required back-payment of premiums and additional penalties.

Learn more about WA Cares exemptions

Employer resources

WA Cares resources for businesses are available online in the employer toolkit. Additional toolkit materials are in progress and will be published in January.

To stay up to date on new developments and materials, you can sign up for the WA Cares mailing list.