²ÝÁñÉçÇø

Lawmakers hit brakes on WA Cares payroll tax, plan big changes

Washington House lawmakers Wednesday approved a pair of key bills to delay the payroll tax collections for WA Cares until July 2023 and make broad changes to the first-of-its-kind long-term care program in the face of criticism.

The votes come in the second week of the 60-day legislative session, with Democratic House lawmakers moving speedily to address critiques and concerns that have emerged over the program this past year.

House Bill 1732, which delays the payroll tax, passed 91-6, with just a handful of Republicans in opposition. It now heads to the Senate.

Approved by Democratic lawmakers and Gov. Jay Inslee, WA Cares is styled as a social insurance program funded by a .58% payroll tax on workers. Starting in 2025, eligible beneficiaries could begin claiming up to $36,500 to pay for necessities like assisted living or nursing care, meal preparation and transportation, and respite for caregiving family members. 

But as the program got going last year ahead of the new payroll tax — set to begin Jan. 1 — . Many focused on people who would pay into the program but never receive benefits.

Those include, among others, roughly 150,000 Washington workers who live in another state and people who will pay into the program but move to another state to retire. At the same time, about 477,000 people in Washington are near retirement age and may not become fully vested in the program and claim full benefits, as it is currently structured.

Tags