WA House approves delaying payroll tax for WA Cares until July 2023

wacares

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. In Wednesday’s floor debate, bill sponsor House Majority Leader Pat Sullivan, a Democrat of Covington, defended the long-term care program, calling it necessary for state residents to be able to remain in their homes as they age.

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.

House Bill 1732 would delay the payroll tax until July 1, 2023, and would allow some workers currently near retirement age to claim prorated benefits. People born before 1968 and who won’t be fully vested under the program’s current structure will be able to get partial benefits based on the number of years they ultimately pay into the program. Under the bill, any premiums already collected would be refunded within 120 days. (Seattle Times)

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