Applications for an exemption will be accepted from October 1, 2021, to December 31, 2022.
Impact on Individuals
Individuals with more than 10 years until retirement and income above $200,000 may benefit from buying personal insurance and opting out of the program.
Guidance to Make Your Decision
The grid below shows the estimated cumulative payroll deduction to age 65 for various age bands and income amounts. Use this grid to help determine if you’ll benefit from opting out of the state program.
The grid assumes the following information:
- 65 is the retirement age
- 2% annual income growth
- 0.58% deduction in all years
- $36,500 in the current Washington LTSS Trust total long-term care benefit pool
What Should Employers Know About the LTTS Program?
Employers with employees located in Washington State should track developments regarding the state’s new program and make applicable payroll tax deductions starting January 1, 2022.
In advance, employers should consider informing employees of the new law, including:
- Its effect on their paycheck
- The brief period to purchase long-term care insurance before November 1, 2021
- The exemption window between October 1, 2021, and December 31, 2022
Employers may also want to provide long-term care insurance to employees; however, employers that choose this option must provide a plan equal to or better than the state plan.
We’re Here to Help
To learn more about the new LTSS program and how it could impact your personal finances, retirement plan, or business, contact your Moss Adams professional.