Washington State Long Term Care Act
If under age 50, regretfully we have no options, but for high-income earners age 50+ we have a great solution and it's still not too late!
Time is Running Out - New Employment Tax is Coming!
The Long-Term Care Trust Act goes into effect starting January 1st, 2022. Mandatory program for all Washington residents working 500+ hours per year and who don’t hold a Long Term Care Insurance Policy
W-2 employees will pay a premium tax through payroll deductions. Tax is similar to State Medical Leave – Except much higher! Wages will be taxed without limitation or capped amount, the more you earn the more you pay. If you are age 50 or older, read more...
Sample of Tax Rates Deducted from Check Beginning 1-1-2022
(many experts believe this lifetime rate will eventually rise to well above 2%)
This is in addition to the State's .4% Family & Medical Leave Payroll Tax which started in 2019
One-Time Opt Out Closes November 1st, 2021
Individuals who own their own “long-term care insurance” can apply for an exemption from the premium tax
Policy must by in force by November 1st, 2021 but act fast, it can take up to 4 weeks to get a plan issued.
If you're age 50 or older, Green Financial can help you enroll on plan that will allow you opt out. If you miss the window you will pay tax the rest of your working career! If you retire within 10 years you lose lifetime vesting from the state plan. If you move out of Washington you get no benefits from the state plan.